ROAS is the Wrong Metric: How to Optimize Growth Channels for Profit Maximization

May 25, 2023



In today's business landscape, companies are constantly trying to maximize their profits through growth marketing. However, many companies focus solely on Return on Ad Spend (ROAS) as a measure of success, which can lead to suboptimal results. In this talk, I will explain the difference between ROAS and Marginal Return/Marginal Cost and why the latter is a better metric for profit maximization. I will also provide practical tips and strategies for how to optimize growth channels towards Marginal Return/Marginal Cost, including how to identify the most profitable channels, how to allocate budgets based on marginal profitability, and how to scale campaigns for maximum profitability. By the end of this talk, attendees will have a clear understanding of how to move beyond ROAS and achieve true profit maximization through growth marketing.



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