While it varies by industry, a safe range for established businesses is typically 5-10% of revenue, while high-growth startups may reinvest 15-25% to capture market share.
If you select “Scale Fast,” the tool allows for higher risk and lower immediate efficiency. “Maximize Profitability” will recommend a more conservative, high-ROAS approach.
This means your ad spend is high relative to your revenue. If your efficiency (ROAS/CAC) isn’t exceptional, this spend level may be unsustainable in the long term.
Focus on “Efficiency Optimization”—improving your conversion rates and ad creative—to get your ROAS to a level where higher spend becomes safe again.
SaaS businesses often have higher LTV and can afford higher upfront CAC compared to E-commerce brands with lower repeat purchase rates.