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Paid AdsTactic2026-02
High ROAS Can Be a Warning Sign: If You Are Profitable at 2x, a 5x Means You Are Under-Spending
George Clements (@georgeclem)
Key tactics
- Calculate the true breakeven ROAS from unit economics
- Push spend until you approach that breakeven rather than stopping at high ROAS
- Treat very high ROAS as a signal of untapped volume
Summary
Counter-intuitive but important operating principle: a 5x ROAS often means the brand is leaving money on the table. If the business is still profitable at 2x, the correct move is usually to increase spend until diminishing returns appear, not to protect the high ROAS number.
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