It stops you from scaling losses and helps you scale winners.
If you only look at ROAS, you might think a campaign is successful because it generates high revenue. However, once you factor in shipping, fees, and product costs, you could actually be losing money on every order.
Knowing your True Profit allows you to:
-1. Bid Strategically: Know exactly how much you can afford to pay to acquire a customer (CPA).
-2. Cash Flow Management: Ensure you have enough actual cash to buy more inventory.
-3. Scale Confidently: Push budget into campaigns that contribute to the bank account, not just the vanity metrics.