Perpetual Traffic (Part 1) Why ROAS Sucks: The New Marketing Metric Everyone Should Use…But Aren’t
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Mar 18, 2025 John Moran, a growth strategist and Google Ads expert at Tier 11, challenges the prevailing wisdom around Return on Ad Spend (ROAS). He explains why this traditional metric may be holding businesses back and advocates for new, more effective measures like Media Efficiency Ratio (MER) and New Customer Acquisition Cost (NCAC). Moran emphasizes the importance of a multi-channel, client-centric approach in performance marketing, urging marketers to focus on sustainable growth and profitability instead of vanity metrics.
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ROAS is Outdated
- ROAS is no longer the primary metric for evaluating marketing success.
- Focus on metrics that drive long-term growth like Media Efficiency Ratio (MER) and New Customer Acquisition Cost (NCAC).
Client-Centric Approach
- Agencies must adopt a client-centric approach, prioritizing business growth over platform metrics.
- Understand the client's business deeply and work as partners to achieve their goals.
Measuring Business Health
- John Moran’s Google Ads agency measured success based on business health, not just Google Ads metrics.
- This holistic approach was limited by other agencies' focus on in-app metrics like ROAS.