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.

The 3-Buckets Advertising Framework

04:01

Control Your Growth: Beyond Advertising

02:21

Master the Funnel: Focus on New Interest

01:16

Intro

3min

Beyond ROAS: Rethinking Marketing Metrics

17min

Avoiding the Pitfalls of Over-Reliance on Direct Marketing Metrics

4min

Cherished Memories from the Olympics: A Day of Fanaticism

2min

Exploring the Olympics: Sports, Ads, and Marketing Strategies

3min

Ep. 249

"Is putting all your eggs in the ROAS basket stunting your growth?"

Kipp and Kieran dive into why relying solely on Return on Ad Spend might not be the smartest move for marketers aiming for long-term success. Every marketer needs to understand the significance of building their own audience, the true impact of paid advertising, and navigating the complex world of marketing metrics.

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