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Turn ad spend into revenue

The full model: spend to global spend to revenue, with the band it produces. Change the product type and watch the answer move by an order of magnitude.

Estimated MRR

$2.11M

Centre of the band

Estimated ARR

$25.31M

Twelve times the centre

Band width

Ceiling over centre

The band

$266.7K$2.11M$16.67M
Global spend, from EU share (24.5%)$81,633
Ad spend as share of revenue3.9%
Revenue = global spend ÷ that share$2,109,371

This is the model the index runs, not a simplified version of it. The band is wide because both divisions are genuinely uncertain — the EU share alone carries about 55% of the variance, and no query can narrow it because a US campaign is not zero in the archive, it is invisible.

What it actually computes

  • Divide by the EU/UK share of global budget — the archive covers EU delivery only, so a US campaign is invisible rather than zero.
  • Divide again by what that kind of product spends on ads as a share of revenue.
  • A consumer mobile app spends about 35% of revenue on acquisition; a B2B SaaS spends about 4%. Using one number for both was the model’s largest ever error.

Where it stops

The EU share carries roughly 55% of the model’s variance and cannot be observed, only bounded. That is why the output is a range and why the range is wide.

Find something worth building.

12,000+ products, priced from their own advertising, all of them under $500K a month — the range a small team can actually enter.