Your ROAS Is Lying to You (But I’ll Break It to You Gently)

Let’s talk about everyone’s favorite (and most misunderstood) marketing metric: ROAS.

Ah, ROAS—the number that makes CFOs nod in approval and marketers lose sleep at night. If you’ve ever refreshed your dashboard obsessively, hoping for that sweet, sweet 4x return, you’re not alone. But here’s the thing: ROAS alone doesn’t mean much.

That’s right. It’s time to have the talk. The one where we discuss how ROAS is just a tiny piece of the puzzle and why fixating on it is like judging a five-course meal based on the bread basket.

ROAS: The Half-Truth We Keep Falling For

Yes, ROAS can tell you if your ads are “working” in the short term. But what it doesn’t tell you is: How many of those customers will return and buy again? How your ads are contributing to brand awareness. How many people almost converted and need a little nudge from email, SMS, or (gasp) a social post before they commit.

If you’re making marketing decisions only based on ROAS, you’re playing checkers while your competitors are playing 3D chess.

Your Ads Are Doing More Than You Think

Think about it—have you ever seen an ad, ignored it, then bought the product weeks later because you got an email, saw an influencer rave about it, or finally got paid and decided to treat yourself?

Exactly. Marketing is not a one-and-done game. Consumers take their sweet time deciding, and your ad is just one of many touchpoints along the way. That’s why obsessing over ROAS is like measuring a relationship based on who texted first. (Spoiler: It’s never that simple.)

So, What Should You Focus on Instead?

Customer Lifetime Value (CLV) – Because repeat customers are the real MVPs. Net Present Value (NPV) – Fancy finance talk for “Is this actually profitable in the long run?” Attribution Across Channels – Because email, SMS, social, and ads all work together (just like your marketing team should).

The Takeaway? Stop Playing the Short Game

If you’re still making marketing decisions only based on ROAS, it’s time to rethink your strategy. Sure, efficiency is great—but growth is better.

So next time someone asks, “What’s the ROAS on this campaign?”—just smile, take a deep breath, and say, “It’s part of the bigger picture.”

And then send them this newsletter. ??

#Marketing #ROAS #LongTermGrowth #ThinkLikeACFO