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Why performance marketing needs more than ROAS

MarTech·Jessica Hawthorne-Castro·27 days ago
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Return on ad spend (ROAS) has long been the default metric for evaluating marketing performance. It’s simple, immediate, and easy to communicate: dollars in versus dollars out. But simplicity can be misleading. As the digital ecosystem becomes more complex and organizations demand clearer accountability for growth, ROAS alone is no longer sufficient. Performance marketing is evolving from a narrow focus on efficiency to a broader mandate: driving meaningful, long-term business outcomes. ROAS tells you what’s working now, but not necessarily what’s working best or forecast further performance. High-ROAS campaigns often capture existing demand, such as retargeting users already close to conversion. While efficient, they may contribute little to incremental growth. Conversely, lower-ROAS initiatives — like prospecting or upper-funnel campaigns — can introduce new audiences, expand market reach, and generate future revenue that isn’t immediately visible in platform reporting and must be harvested.…

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