
DTC Podcast
Bonus: The Marginal ROAS Revolution and How Meta's Algorithm Actually Works with Constantine Yurevich of SegmentStream
Apr 16, 2025
Constantine Yurevich, founder of SegmentStream, shares his expertise on marketing measurement and budget optimization. He emphasizes the importance of marginal ROAS over average ROAS for smarter ad spending. Constantine explains Meta's complex algorithms and how advertisers often misinterpret performance metrics, leading to lost profit. He introduces the concept of "destabilizing analytics" to assess campaign performance accurately. Plus, he advises marketers on when to diversify their strategies beyond Meta, particularly for brands spending over $1M/month.
48:52
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Quick takeaways
- Prioritizing marginal ROAS over average ROAS is essential for accurately assessing campaign profitability and informed budget allocation.
- Understanding Meta's algorithm and implementing controlled budget shifts can significantly enhance marketing performance and revenue optimization.
Deep dives
Understanding ROAS Misconceptions
Return on Ad Spend (ROAS) is often misunderstood, as its definition varies among marketers. It can refer to different calculations, such as total revenue divided by spend or profit margins taken into account. This ambiguity can lead to inaccuracies in performance assessments, particularly when considering attribution models utilized by platforms like Google and Facebook. Many marketers fail to recognize that different attribution methods may yield vastly different ROAS values, highlighting the need for clarity when discussing ad performance.
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