This was published in the No Best Practices newsletter on 10.29.2021.
Note: ROAS = return on ad spend. To calculate it, divide the dollars of revenue attributed to an ad campaign by that campaign’s cost.
If you’re a long time reader of this newsletter or the No Best Practices site, you know how I feel about ROAS (I hate it).
We have officially entered Q4, the period where ROAS is highest for many brands. But the long term benefits of holiday sales are questionable at best. So I thought I would use this edition of the newsletter to explore how ROAS can be used and abused, and what metrics we should be using in its place.
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