Sign up for our daily recaps of the ever-changing search marketing landscape. Your marketing team is hard at work tweaking ads and landing pages to drive efficiency and hit the targets set for them by the C-suite.
And those targets are more than likely ROAS-related. But, for two reasons, these ROAS targets are actually causing a lot of damage: If, like most companies, you’re focused on growth and new customer acquisition, you need to ditch ROAS-based KPIs, come up with a new metric and include incrementality before it’s too late.
When we talk about “incremental sales” as a digital marketing KPI, we’re talking about how much a specific marketing campaign or channel contributed to increasing sales revenue. So, if a search or shopping ad led to a sale that wouldn’t have happened otherwise, that’s an incremental sale.
Return on ad spend (ROAS) takes into account purchases from users after clicking on an ad. At first glance, that sounds reasonable.
It seems like that measure would tell you how good an ad is at driving revenue. But what ROAS usually doesn’t tell you is whether or to what extent those sales would have happened anyway (without showing ads). Read more from searchengineland.com…
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