dream: sustained profitability.

[muniyaakter]

Too often, steep discounts are a win-lose — a win for consumers, but a losing proposition for e-commerce retailers. Looking beyond ROAS In my professional experience in digital marketing, it’s easy to focus narrowly on a marketing metric like ROAS and miss the bigger picture. Yes, if you steeply discount your product, ROAS will likely rise. But that might not matter much to your bottom line. High ROAS alone can’t guarantee a profitable, successful, scalable marketing digital advertising campaign. Before you achieve that, you need to have all the necessary pieces in place, including a scalable price point and gross profit margin. To set the stage for a successful campaign,



focus more on profit and LTV, and test some full-price ads — you never know what you’ll find. Lower ROAS may deliver more valuable audiences, and the real
If customers buy frequently enough, and at a low price point, the company new zealand number screening doesn’t necessarily need to break even on first orders; it can rapidly earn back initial acquisition costs. Why profit is a more important metric than ROAS Early-career marketers might balk at this, but whatever ROAS goal makes sense for your business, it shouldn’t be your only focus — or even your top priority. If you aren’t prioritizing low CPAs and high ROAS, what should you be focusing on? The answer is simple: gross profit margin. It’s common practice to tack a hefty discount code onto ads to entice new users to convert. This can be effective — and boost ROAS. The bigger the discount, though, the higher your break-even ROAS. Even if your ROAS spikes because your discount code drove conversions, ROAS might not go up enough to hit your elevated break-even point. I’ve seen advertisers lose money that they never earned back on ad campaigns by forgetting to center profitability. Ultimately, a business can’t scale without profit, unless it’s one of the less than 1% of startups with venture funding — and even venture capitalists like to see a path to profitability for their portfolio companies.