Marketing Against The Grain
ROAS Is a Trap: How Smart Marketers Really Drive Growth
Aug 6, 2024
Delve into the hidden dangers of prioritizing Return on Ad Spend as the sole measure of marketing success. Discover why integrating brand awareness and incrementality models is vital for sustainable growth. Hear personal anecdotes from the Olympics, highlighting the excitement of unconventional sports and partnerships. The conversation champions a balanced approach to marketing metrics, emphasizing that true effectiveness goes beyond just numbers. Embrace a broader strategy for lasting audience cultivation.
31:45
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Quick takeaways
- Relying solely on Return on Ad Spend can obscure meaningful metrics and stifle long-term marketing growth opportunities.
- Utilizing the incrementality model and focusing on brand awareness can better capture new customers and drive sustainable success.
Deep dives
The Flaw in Advertising Metrics
Traditional advertising metrics, such as Return on Ad Spend (ROAS), are increasingly seen as inadequate for measuring marketing effectiveness. While ROAS provides clear insights into the return generated from spending, it also allows for manipulation, as marketers can adjust spending on retargeting or discounts to achieve desired figures. This reflects a broader issue within marketing where easier-to-measure metrics may overshadow more meaningful, albeit complex, indicators of success. As businesses evolve, a shift toward recognizing the limitations of ROAS is essential for adopting a more accurate and holistic approach to measuring advertising effectiveness.
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