The Profitability Power of Adwisely: Why 6x ROAS Beats DIY 4x ROAS Every Time
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The Profitability Power of Adwisely: Why 6x ROAS Beats DIY 4x ROAS Every Time
A lot of Shopify store owners have a common thought: “With Adwisely, my campaigns achieve a 6x ROAS, but I also pay a fee for their service. Wouldn’t it be more profitable to run the campaign myself and settle for a 4x ROAS?”. Spoiler alert: that’s not true! When you factor in Adwisely’s fee, your profitability is still better than if you opted for a DIY campaign. In this article, we’ll show you exactly why partnering with Adwisely helps you maximize profit, using hard numbers to back it up.
Understanding Adwisely’s Billing Model
Adwisely charges a flat fee of $249 for ad spends up to $2,500. For higher budgets, the fee transitions to 10% of the ad spend. This fee is applied transparently, and it’s designed to deliver measurable results by optimizing your paid ad performance. At first glance, some store owners might feel that this fee reduces profitability, but the reality tells a different story when you factor in actual ROAS (Return on Ad Spend).
Breaking the “DIY Myth”
The table below highlights the relationship between measured ROAS (the performance reported in your Google Ads account) and actual ROAS (your true profitability after accounting for Adwisely’s fee):
Now, let’s address the hypothetical scenario: running a campaign yourself with a 4x ROAS.
Imagine you’re spending $10,000 per month on ads:
- With Adwisely: At a 6x measured ROAS, your gross revenue would be $60,000. But ROAS will be smaller because the denominator in ROAS formula includes both ad spend and the Adwisely fee. True ROAS comes to 5.45x—not too far off from the measured ROAS.
- Profit Calculation (30% Margin): $60,000 * 30% – $10,000 = $8,000. After deducting the $1,000 fee, your profit stands at $7,000.
- DIY Campaign: At a 4x ROAS, your gross revenue would be $40,000. Since there’s no additional fee, your actual ROAS remains 4x.
- Profit Calculation (30% Margin): $40,000 * 30% – $10,000 = $2,000. With no fee, your profit stays at $2,000.
The $5,000 difference in profit ($7,000 – $2,000) speaks volumes about the value Adwisely brings.
A Closer Look at Actual ROAS Adjustments
Want to hack the Adwisely system and pay less for higher profits? Here’s the deal: the more you spend, the less Adwisely’s fee impacts your actual ROAS. That’s right—scale up your ad budget, and watch the fee’s percentage effect shrink, stabilizing around -9% for spends above $2,500.
For smaller ad spends (under $2,500), the flat $249 fee plays a bigger role. But don’t worry—it still delivers game-changing results. Check this out:
- At $1,000 ad spend with a 1000% measured ROAS, your actual ROAS adjusts by -20%, landing at 800%.
- Scale up to $2,500, and the impact drops to just -9%, meaning your 1000% measured ROAS becomes 909%.
Bottom line? If you’re ready to unlock maximum value, boost your ad spend and let Adwisely supercharge your profitability!
Why These Adjustments Matter
Understanding these adjustments helps merchants make data-driven decisions:
- Low Budgets Benefit From Performance Optimization: Even if the flat fee feels proportionally higher, the resulting revenue is significantly greater than what most DIY campaigns achieve.
- High Budgets Achieve Stability: Beyond $2,500, the fee becomes predictable and has a minimal impact on your actual ROAS, allowing you to scale with confidence.
- Daily Budget Guidance: The table also outlines daily ad budgets for each ad spend tier, ensuring you plan effectively for sustained results.
Why Adwisely’s Expertise Matters
Adwisely optimizes campaigns in ways that would be difficult to replicate manually. Our automation platform uses advanced algorithms to:
- Identify High-Value Audiences: Target the customers most likely to convert.
- Optimize Ad Placements: Ensure your ads deliver maximum value for every dollar spent.
- Eliminate Wasted Spend: Prevent budget leaks caused by inefficient targeting.
The result? Higher measured ROAS and, more importantly, higher actual ROAS, even after their fee.
The Takeaway
When it comes to maximizing profitability from paid ads, the numbers don’t lie. Partnering with Adwisely consistently outperforms DIY campaigns, even when factoring in Adwisely’s fee. By achieving higher ROAS, you’re not just covering the cost of our service – you’re significantly increasing your bottom line.
So, the next time you wonder if you should take your ad campaigns into your own hands, remember this: 6x ROAS with Adwisely beats 4x ROAS any day of the week!
Ready to grow your Shopify store? Let Adwisely’s expertise unlock the full potential of your paid ads.