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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insights INSIGHT
ROAS is Outdated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).
volunteer_activism ADVICE
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.
question_answer ANECDOTE
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.
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Return on Ad Spend (ROAS) has been the go-to metric for measuring success in digital advertising, but is it actually holding your business back? In this episode, we break down why traditional ROAS is misleading, how agencies manipulate data to appear successful, and what you should be focusing on instead. John Moran joins the conversation to discuss the metrics that actually drive growth, including Media Efficiency Ratio (MER) and New Customer Acquisition Cost (NCAC). Learn how to shift your marketing strategy to prioritize long-term scalability and profitability, rather than short-term vanity metrics.
Chapters:
00:00:00 - Welcome to Perpetual Traffic: Why This Episode is a Must-Listen
00:00:17 - The Episode That Changed How Marketers Measure Success
00:00:55 - The Truth About ROAS: Why It’s Holding Your Business Back
00:02:00 - John Moran Joins Tier 11: A Game-Changer for Performance Marketing
00:03:47 - From Google Ads Expert to Growth Strategist: John Moran’s Evolution
00:05:21 - The Fatal Flaw of Single-Channel Agencies
00:06:57 - Why a Client-Centric Approach Beats Platform Metrics Every Time
00:14:02 - How Marketing Measurement Has Been Broken for Years
00:16:54 - The New Marketing Strategy That Actually Scales Businesses
00:25:20 - The Secret to Aligning Teams for Maximum Growth
00:27:13 - Why Most Agencies Won’t Survive the Next Marketing Shift
00:28:02 - The Role Agencies Should Play in Growing Your Business
00:29:41 - The Future of Marketing Metrics: What You Need to Track Now
00:33:13 - Real-World Case Studies: How to Fix Your Marketing Measurement Today
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