What does PNO mean?

PNO is a Czech abbreviation for “podíl nákladů na obratu” (cost-to-revenue ratio) and refers to a metric that expresses what share of revenue is made up of advertising or other marketing costs. It is calculated as costs divided by revenue, multiplied by one hundred. For example, if an ad cost CZK 2,000 and generated revenue of CZK 20,000, the PNO is 10%. A lower PNO usually means more efficient use of the budget, but on its own it doesn't tell you whether a campaign is actually profitable. When evaluating it, it is therefore important to also consider margin, other costs and business goals. PNO is used in the Czech Republic mainly for managing performance campaigns and can be understood as the inverse of the ROAS metric.