(Part 1) Why ROAS Sucks: The New Attribution Metric Everyone Should Use...But Aren’t
Mar 16, 2024
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Explore the evolution of Tier 11 and the client-centric approach reshaping digital marketing. Learn about the shift towards integrated marketing models, mastering Google Ads, and the importance of an omni-channel approach. Discover why ROAS isn't the only measure of success and how to craft effective multi-platform strategies. Get insights on the future of digital marketing agencies and the strategic synergies driving success.
Success should be measured by top-line growth and profit, not just channel-attributed metrics like ROAS.
Strategic audience targeting and revenue growth drive substantial business gains, even if traditional metrics show decline.
Deep dives
Restructuring Ad Campaigns for Growth
By analyzing and restructuring the ad campaigns, focusing on top-performing products, and allocating budgets more strategically towards prospecting, the company was able to see a 32% increase in revenue within just six days. Despite a 40% decrease in ROAS and an 80% drop in conversions in Google ads, shifting to standard shopping campaigns allowed for a more balanced approach, resulting in a 3.93 incremental MER and significant profit growth.
Measuring Success Beyond Channel Metrics
The podcast episode emphasizes the importance of measuring success in terms of top-line growth and profit instead of solely relying on channel-attributed metrics like ROAS. The example provided showcases how focusing on strategic audience targeting and revenue growth can result in substantial business gains, even when traditional metrics may indicate a decline or failure.
Importance of New Customer Acquisition
Highlighting the significance of new customer acquisition, the podcast details how redirecting ad spend towards acquiring new cold traffic for high-potential products led to a nearly 400% increase in MER. Despite appearing as a loss in terms of traditional ROAS and conversion metrics, the approach resulted in a substantial revenue boost and strategic audience expansion.
Adapting Strategies for Business Growth
The discussion underscores the need for agencies and businesses to adapt their strategies to prioritize business growth and align with key objectives such as new customer acquisition and revenue increase. The focus on adjusting ad campaigns based on top-performing products and strategic audience targeting illustrates the importance of looking beyond traditional channel metrics to achieve long-term profitability and success.
Today Ralph and John Moran get into the transformative journey of Tier 11 and the pivotal role John plays in this evolution. As they dissect the outdated metrics plaguing the industry, they introduce a client-centric approach that's reshaping how success is measured in digital marketing. This conversation not only puts a spotlight on the strategic merger of John's expertise with Tier 11's vision but also challenges the conventional agency model, advocating for a more holistic, performance-driven method. By focusing on the real indicators of growth, they lay down a roadmap for businesses aiming to thrive in a constantly evolving digital landscape. If you’re looking to transcend traditional marketing boundaries and achieve genuine, scalable success, tune in to part one now.
Chapters:
00:00:00 - Introduction to Perpetual Traffic and Welcoming John Moran
00:04:41 - Connect with Us: How to join our community for real-time discussions.
00:05:50 - Agency Evolution: Exploring the shift towards integrated marketing models.
00:07:31 - Mastering Google Ads and Beyond: Techniques for managing complex ad platforms.
00:10:17 - The Omni-Channel Approach: Expanding marketing strategies for broader impact.
00:11:32 - Beyond Traditional Metrics: Why ROAS isn't the only measure of success.
Connect with Kasim on Twitter and Connect with Ralph on LinkedIn
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