
A “good” ROAS can be a trap if it keeps your business small.
If you only approve campaigns that hit very high efficiency targets, you naturally steer budget toward the safest pockets of demand. Brand searches. Repeat buyers. Easy wins. The dashboard looks amazing. The volume looks... underwhelming.
Meanwhile, there are campaigns that could grow your market, reach new customers, and build long-term value at a slightly lower ROAS. On paper they look less impressive. In reality they might be doing the heavy lifting for your future revenue.
The question is not “Is this campaign efficient enough?” in isolation. It is “Does this campaign make sense for what we are trying to do this quarter?” If you are in pure profitability mode, chasing higher ROAS on a smaller base can be fine. If you are trying to grow, an obsession with efficiency usually ends up leaving money on the table.
Sometimes the right move is to accept a lower ROAS on the next pound so you can buy more scale, more data, and more customers who would never have found you otherwise.
#marketingstrategy #businessgrowth #campaignefficiency #revenuescaling #marketinginsights
If you only approve campaigns that hit very high efficiency targets, you naturally steer budget toward the safest pockets of demand. Brand searches. Repeat buyers. Easy wins. The dashboard looks amazing. The volume looks... underwhelming.
Meanwhile, there are campaigns that could grow your market, reach new customers, and build long-term value at a slightly lower ROAS. On paper they look less impressive. In reality they might be doing the heavy lifting for your future revenue.
The question is not “Is this campaign efficient enough?” in isolation. It is “Does this campaign make sense for what we are trying to do this quarter?” If you are in pure profitability mode, chasing higher ROAS on a smaller base can be fine. If you are trying to grow, an obsession with efficiency usually ends up leaving money on the table.
Sometimes the right move is to accept a lower ROAS on the next pound so you can buy more scale, more data, and more customers who would never have found you otherwise.
#marketingstrategy #businessgrowth #campaignefficiency #revenuescaling #marketinginsights
Shared byQuinn Khan - 8 days ago
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