The Andrew Faris Podcast 9 Takeaways From Running Meta Ads For 8-Figure Brands In 2025
Jan 1, 2026
This discussion delves into the critical issues of ad spending efficiency for ecommerce brands. Overspending is rampant, and Andrew highlights the importance of comparing ad returns to index fund performance. He outlines common mistakes, the significance of measuring true incremental revenue, and the pitfalls of creative testing. Managing seasonality and understanding marginal ad spend are vital for consistent returns. Additionally, insights on supply chain optimization and the potential of platforms like AppLovin offer actionable strategies for brands aiming for profitability.
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Ads Are Often A Losing Investment
- Most e-commerce brands are overspending on ads and often lose money on incremental spend.
- Andrew Faris argues some ad dollars would earn more if invested in index funds than spent inefficiently on ads.
Measure True Incrementality
- Measure incrementality, not just platform-reported ROAS, to know if spend creates incremental customers.
- Make teams justify any line item that shows a negative return before continuing to fund it.
Turning Off Google Revealed Waste
- A client turned off Google Ads after spending hundreds of thousands and found contribution dollars increased.
- The removal showed the previous spend produced minimal incremental value relative to cost.