Understanding ROAS: The Key Metric Behind Direct Mail Investments
For those following my posts on direct mail investing, I wanted to break down the most important metric: ROAS (Return On Ad Spend).
ROAS is measured in basis points. Here’s how to read it:
10000 bps = 100% ROAS = Break-even (revenue equals cost)
15000 bps = 150% ROAS = 1.5x return on spend
18000 bps = 180% ROAS = 1.8x return on spend
When evaluating a campaign on Archer Group Marketplace, you’ll see:
Projected Campaign ROAS - The expected total return based on historical performance
ROAS Offer - The return offered to investors specifically
Historical percentiles - 25th/50th/75th percentile performance from past campaigns
We use historical data to show conservative, average, and optimistic scenarios. No guessing games.
Want to learn how to analyze a deal sheet and ROAS projections? We cover it in our investor webinar. Sign up at license.archer.group/investors.