RETHINKING ROAS FOR GROWTH

Summary from the TLDR Founders newsletter

Focusing solely on Return on Ad Spend (ROAS) can actually limit a brand's growth by targeting existing heavy buyers rather than attracting new customers. ROAS measures efficiency rather than effectiveness - prioritizing it can lead to over-harvesting existing customers at the expense of acquiring new ones. To achieve real growth, brands should consider alternative metrics and strategies that prioritize creativity and long-term impact over short-term efficiency.