SUMMARY

Spencer Pawliw, an e-commerce expert, breaks down the ROAS formula—conversion rate times AOV times CTR divided by CPM times 1,000—and shares strategies like landing pages, offers, and ad creatives to scale brands to $100K daily revenue.

STATEMENTS

• ROAS, or return on ad spend, is fundamentally calculated as conversion rate multiplied by average order value multiplied by click-through rate, divided by cost per mille times 1,000, providing a clear estimate of ad performance.
• To effectively increase ROAS, advertisers must focus on elevating the numerator metrics—conversion rate, average order value, and click-through rate—while reducing the denominator metric of cost per mille.
• High-converting landing pages that outperform a brand's main website directly boost conversion rates, thereby elevating overall ROAS without altering ad spend.
• Testing and implementing irresistible offers not only enhances conversion rates but also raises average order value, creating a powerful double multiplier effect on ROAS.
• Superior ad creatives simultaneously improve conversion rates, increase click-through rates, and lower cost per mille, delivering a triple impact that significantly amplifies ROAS.
• Combining optimizations in landing pages, offers, and ad creatives results in exponential improvements across all ROAS components, enabling brands to achieve massive revenue scales like $100,000 daily.
• Many e-commerce operators fail to boost ROAS because they overlook logical breakdowns, instead fixating on ad accounts rather than addressing creatives, offers, and landing pages.
• Successful scaling brands, such as those hitting $75,000 or $1 million monthly, prioritize understanding and applying the ROAS equation through targeted metric improvements.
• Ad creatives can indirectly influence average order value by persuading customers to spend more, further enhancing ROAS beyond direct metric tweaks.
• The simplicity of the ROAS formula belies its power; focusing solely on its components eliminates guesswork and drives profitable growth in e-commerce advertising.

IDEAS

• ROAS isn't an abstract ad platform metric but a precise equation tying store performance (conversion rate and average order value) to ad efficiency (CTR and CPM), revealing why many campaigns underperform.
• Brands can hit $100,000 revenue days not through ad spend alone, but by dissecting ROAS into actionable parts, as demonstrated by multiple client successes in a single month.
• Landing pages act as a leverage point: if they convert better than the main site, they silently amplify ROAS without touching budgets or bids.
• Offers create a rare "double multiplier" in ROAS calculations, boosting both conversion rates and average order values simultaneously for outsized gains.
• Ad creatives hold triple power in ROAS dynamics—increasing conversions and clicks while slashing costs—making them the most versatile tool for scaling.
• When all ROAS levers are pulled together—landing pages, offers, creatives—the formula yields "madness" level improvements, turning modest campaigns into high-revenue engines.
• Common e-commerce pitfalls stem from ignoring the ROAS breakdown; operators chase ad account tweaks instead of holistic optimizations like offers that persuade higher spending.
• Even strong ads can elevate average order value indirectly by building customer desire, showing how creative storytelling influences post-click behavior.
• Scaling to $1 million monthly requires demystifying ROAS early; the speaker regrets taking too long to grasp it, yet shares it freely to accelerate others' growth.
• Sharing ROAS insights via short videos can democratize scaling knowledge, helping struggling brands avoid wasted ad spend through simple, logical focus areas.
• Transaction volumes like $42,000 USD from a $72,000 day highlight ROAS's real-world translation into profit, emphasizing metric tweaks over vanity scaling.
• E-commerce growth hinges on stopping irrelevant activities; time spent on non-impactful tasks dilutes ROAS potential, while targeted efforts compound results.

INSIGHTS

• True ROAS mastery lies in recognizing it as an interconnected system where store-side enhancements like landing pages and offers amplify ad-side efficiencies, creating sustainable scaling loops.
• The double multiplier from offers underscores a profound e-commerce truth: value perception drives both purchase likelihood and spend depth, far beyond price alone.
• Ad creatives' multifaceted impact reveals creativity as the ultimate ROAS accelerator, bridging emotional appeal with data-driven cost reductions for exponential returns.
• Overlooking the ROAS formula's simplicity traps advertisers in inefficiency; logical decomposition shifts focus from symptoms to root levers, unlocking profitable growth.
• Combining optimizations doesn't add effects linearly but multiplies them, illustrating how integrated strategies in e-commerce yield disproportionate revenue breakthroughs.
• Demystifying metrics like CTR and CPM empowers brands to treat advertising as engineering, where precise tweaks predict and achieve high-revenue milestones.

QUOTES

• "Your conversion rate, which is the percentage of people that actually buy your product when they land on your store, times your average order value, which is the amount that they spend, times your CTR, which is the percentage of people who actually click, divided by your CPM* 1,000 will actually give you your rorowaz, or a pretty good estimate."
• "When you have something that increases your conversion rate and increases your average order value, you get the double multiplier."
• "Ad creatives... will increase your conversion rate. Two, they will increase your CTR. And three, they can also decrease your cost to advertise."
• "A lot of you guys are not focusing on the things that will actually drive up your conversion rates, drive up your click-through rates, drive down your CPMs."
• "If you want your return on ad spend to look better, you have to focus on the things that increase it."

HABITS

• Regularly test and iterate on offers to identify those that boost both conversion rates and average order values for compounded ROAS gains.
• Dedicate time to crafting and refining ad creatives that emotionally engage audiences, aiming to improve multiple metrics like CTR and CPM simultaneously.
• Build and A/B test dedicated landing pages superior to the main site, monitoring conversion rate uplifts to ensure they drive higher ROAS.
• Break down ROAS into its core components weekly, analyzing trends in conversion rate, AOV, CTR, and CPM to prioritize high-impact optimizations.
• Share case studies and screenshots of successful scales with teams or networks to reinforce focus on formula-driven strategies over ad account guesswork.
• Avoid irrelevant tasks by logging time spent on creatives, offers, and pages, redirecting efforts from low-value activities to ROAS levers.

FACTS

• Multiple brands scaled to over $30,000 daily revenue in the last 30 days through ROAS-focused optimizations, including one hitting $100,000 on July 21st.
• A brand achieved its first $90,000 day on July 1st and is on track for $100,000 daily in July via targeted metric improvements.
• Another e-commerce operation reached a $75,000 day solely on Meta ads on July 20th by applying the ROAS equation effectively.
• A Shopify store grew from $37,000 monthly in April to $1.1 million by late June, demonstrating rapid scaling through conversion and AOV boosts.
• One brand recorded a $72,000 day with $42,000 USD in transactions yesterday, highlighting ROAS's direct link to profitable transaction volume.
• A client hit a $35,000 day at 3x ROAS on July 21st, showing how balanced metric tweaks sustain high-revenue performance.

REFERENCES

• Video on building high-converting landing pages that scaled a brand to over $30,000 daily.
• Case study video detailing how a brand scaled to over $10 million in 90 days using landing pages, offers, and ads.
• Evolve community on Skool for e-commerce strategies.
• TripleWhale Analytics tool for tracking ROAS metrics.
• Insense UGC platform for ad creatives.
• EasyA Media agency for partnering on scaling (minimum $250k/month revenue).

HOW TO APPLY

• Analyze your current ROAS by plugging in conversion rate, average order value, CTR, and CPM into the formula (CR * AOV * CTR) / (CPM * 1000) to identify weak spots, then set baseline targets for improvement.
• Develop and launch custom landing pages optimized for your ads, ensuring faster load times and product-focused messaging to lift conversion rates by at least 20-30% over your main site.
• Brainstorm and test multiple offers like bundles, discounts, or free gifts, tracking their impact on both conversion rates and average order values to find combinations that double ROAS multipliers.
• Create a batch of new ad creatives emphasizing storytelling and user-generated content, A/B testing them across campaigns to boost CTR by 50% while monitoring CPM reductions through better relevance.
• Integrate all optimizations by running holistic campaigns that combine improved landing pages, winning offers, and high-performing creatives, scaling ad spend gradually while measuring compounded ROAS uplifts weekly.

ONE-SENTENCE TAKEAWAY

Master ROAS by optimizing conversion rate, AOV, CTR, and CPM through landing pages, offers, and creatives for explosive e-commerce scaling.

RECOMMENDATIONS

• Prioritize landing page development as the quickest win for conversion rate gains, ensuring they outperform your storefront to directly elevate ROAS.
• Experiment with offers that bundle products or add perceived value, targeting the double boost in conversion and average order value for maximum impact.
• Invest in ad creative production early, focusing on emotional hooks that enhance CTR, conversions, and cost efficiency simultaneously.
• Regularly audit your ad account against the ROAS formula, redirecting budget to campaigns excelling in multiple metrics rather than isolated spend increases.
• Combine all ROAS levers in integrated strategies, scaling only after verifying uplifts in conversion, AOV, CTR, and CPM to avoid wasteful expansion.

MEMO

In the fast-paced world of e-commerce advertising, where budgets can evaporate overnight, Spencer Pawliw offers a disarmingly simple blueprint for transforming ad spend into profit engines. As the founder of EasyA Media, Pawliw has guided brands to jaw-dropping milestones—$100,000 revenue days, $1.1 million monthly hauls—by demystifying return on ad spend, or ROAS. Far from the black-box sorcery many marketers chase in ad platforms, Pawliw insists ROAS boils down to a straightforward equation: conversion rate multiplied by average order value, times click-through rate, divided by cost per mille (CPM) times 1,000. This formula, he argues, shifts the focus from vague scaling tactics to precise, measurable levers that anyone can pull.

At its core, improving ROAS means amplifying the top-line metrics—how many visitors buy (conversion rate), how much they spend (average order value), and how often ads get clicked (CTR)—while slashing the bottom-line cost of reaching audiences (CPM). Pawliw illustrates with real client triumphs: a brand surging from $37,000 monthly in April to over $1 million by June, or another clocking $75,000 in a single day on Meta ads alone. Yet, he laments a common blind spot: too many operators tinker endlessly in ad accounts, ignoring the store-side fixes that truly move the needle. "A lot of you guys are not focusing on the things that will actually drive up your conversion rates," Pawliw says, urging a pivot to fundamentals.

Landing pages emerge as a prime battleground in Pawliw's strategy. By crafting dedicated pages that load swiftly and spotlight products more effectively than a cluttered homepage, brands can spike conversion rates without inflating ad budgets. He points to a recent video tutorial on one such page that propelled a client past $30,000 daily. But the real magic, Pawliw reveals, lies in offers—those irresistible bundles or incentives that not only lure more buyers but coax them to spend more, creating a "double multiplier" effect on ROAS. Testing these, he notes, turns single-digit gains into compounded windfalls, as seen in a $72,000 day yielding $42,000 in transactions.

Ad creatives, meanwhile, wield triple-threat power: they hook users for higher CTRs, guide them to conversions, and even tame CPMs through better platform relevance. Pawliw, with a wry smile in his video, sketches the chaos of synergy—stack these elements, and ROAS "goes mad" with improvement. It's a humorous jab at overcomplication, but his point lands: success stories, from $35,000 days at 3x ROAS to seven-figure months, stem from this relentless focus. For newcomers, he recommends starting small—audit your metrics, build one landing page, test an offer—eschewing the allure of unchecked scaling.

Ultimately, Pawliw's message cuts through e-commerce noise: stop hunting elusive hacks and embrace the equation's logic. In an industry rife with fleeting trends, this approach promises enduring growth, empowering brands to not just survive ad volatility but thrive amid it. As he signs off, inviting viewers to deeper dives via his resources, the takeaway resonates—ROAS isn't rocket science; it's rigorous, rewarding application.