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Why can ROAS be misleading?

ROAS tells you how much revenue a platform attributes to advertising relative to spend. It does not automatically tell you whether the advertising created that revenue, whether the order was profitable or whether the customer would have bought anyway. I use ROAS, but I do not allow it to become the whole commercial story. It needs context from contribution, new-customer acquisition, brand demand, channel overlap and overall business performance.

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Acquisition & Paid Media

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Alan Eves
Independent Ecommerce & Digital Growth Consultant