Formula
Hill / Michaelis-Menten response
Why it matters
Average ROAS can look healthy while marginal ROAS has already fallen below one. Budgets are best set where marginal ROAS meets your target.
Glossary // M / Biochemistry
What is Marginal ROAS?
Definition
Marginal ROAS is the revenue earned from the next dollar of ad spend, as opposed to the average across all spend.