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(Part 1) Why ROAS Sucks: The New Marketing Metric Everyone Should Use…But Aren’t
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.
47:44
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Quick takeaways
- Traditional metrics like ROAS fail to capture the complexities of multi-channel marketing and can mislead businesses into poor strategies.
- A shift towards metrics such as Media Efficiency Ratio (MER) provides a more accurate reflection of campaign effectiveness and business growth.
Deep dives
Impressive Revenue Growth
A lifestyle brand achieved significant financial success, growing its revenue by nearly 50% year-over-year and crossing the eight-figure mark for the first time. They are projected to reach $25 million in revenue by 2025. This impressive growth is attributed to the effective use of the Tier 11 Data Suite, which dramatically reduced their unattributed traffic by 90%. Such a transformation not only unlocked $850,000 in hidden revenue but also allowed the company to increase their ad spend by over three times.
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