Episode 681

full
Published on:

21st Mar 2025

(Part 2) Why ROAS Sucks: The New Marketing Metric Everyone Should Use…But Aren’t

In Part 2 Ralph Burns and John Moran continue their breakdown of why ROAS (Return on Ad Spend) is an outdated and misleading metric for scaling businesses. They introduce a better, more reliable metric that high-growth brands use to measure success—one that actually aligns with business revenue and profit, rather than vanity numbers. Expect insights on how to use Meta for prospecting and Google for conversions, why multi-channel attribution is essential in today’s digital landscape, and how top media buyers are shifting away from ROAS in favor of more effective tracking strategies. If you’re still optimizing for ROAS, you’re probably leaving money on the table. This episode reveals the key changes you need to make right now to maximize your ad performance.

Chapters:

  • 00:00:00 - Welcome Back: Why ROAS is Failing You
  • 00:00:07 - The Hidden Flaws of ROAS (And What to Use Instead)
  • 00:00:23 - The Metrics That Actually Drive Business Growth
  • 00:01:20 - Meta + Google: The Ultimate Ad Strategy
  • 00:02:39 - Real-World Case Study: How This Brand Crushed It
  • 00:04:13 - Stop Wasting Ad Spend: Smarter Budgeting Tactics
  • 00:05:22 - Profit-First Marketing: Why Product Focus Matters
  • 00:11:52 - Behind the Scenes: Live Campaign Breakdowns
  • 00:18:30 - LTV & CAC: The Secret to Scaling Profitably
  • 00:19:04 - Decoding Campaign Metrics for Maximum ROI
  • 00:19:33 - The Overlooked Link Between Profit & Retention
  • 00:21:16 - Treating Marketing as an Investment, Not an Expense
  • 00:22:59 - How to Measure Business Health Beyond ROAS
  • 00:23:24 - Bully Stick Central: A Scaling Success Story
  • 00:24:25 - How Northbeam Helps Brands Scale Faster
  • 00:28:11 - Final Takeaways & What’s Next for Smart Advertisers

LINKS AND RESOURCES:

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Mentioned in this episode:

AppSumo - 13% off with code traffic13

Tier 11 Data Suite

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About the Podcast

Perpetual Traffic
Helping marketing directors and CMOs master paid traffic and conversions!
Perpetual Traffic is a twice weekly podcast that shares cutting-edge strategies on acquiring leads and sales for your business. The show is produced by Tier 11 and hosted by Ralph Burns and Lauren Petrullo. Traffic is the act of putting your product, service, or message in front of your target audience…it’s the act of acquiring customers online while also building goodwill, and is the lifeline of any business. So, whether you’re a media buyer yet to create your first Facebook or Instagram ad, a Director of Marketing or CMO managing a team of marketing specialists, or a CEO growing your business on your own, you’ll discover actionable strategies that can be applied today. Perpetual Traffic combines the traffic strategies developed at Tier 11 with the real-life agency experience of the hosts. Listen to real stories of business owners and marketing executives just like you how they overcame struggles with digital marketing and online advertising. Learn how to make Facebook advertising, Instagram advertising, YouTube advertising, Twitter advertising, Google AdWords advertising, LinkedIn advertising, (and more) work for your business.

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Kasim Aslam