You Don't Actually Want a Better ROAS

[music] >> First of all, we should probably just cover like what do we mean by you don't want a better ad account ROAS? >> I mean, obviously in some instances you do want a better ad account ROAS, right? But I think overall, a lot of businesses and a lot of brands that we

work with, that we speak to, that we see out there uh are optimizing for a a better ad account ROAS when that's not the best thing for the business essentially. Like, better ad account ROAS doesn't always equal profitable growth for a business. And those those two things are very different and it's a common misconception in the

industry. People are obsessed and we call it the ROAS hamster wheel. Like, the ad ad channel ROAS hamster wheel. People are obsessed with better ad account ROAS, better ad account ROAS. And and a lot of the time founders pull a pull a an ad account ROAS target from the sky just because it sounds good. And and it

just creates so so much complexity when it comes to scaling. Like, you just you just don't need as good of a ROAS as you think, firstly. And secondly, ad account ROAS should never ever be your north star as an e-com brand. Like, yes, it's a metric that we look at. Yes, it's a guide.

But it should never ever be your north star metric because if it is, if your entire business is built around optimizing for ad account ROAS, that's not going to equal growth and it's not going to be the best the best thing for the business ultimately. So, what we always say is you think you want

a better ad account ROAS, but do you actually want a better ad account ROAS or do you want profitable growth for the business? Cuz those two are absolutely not always the same thing, essentially. >> Yeah, definitely. I feel like it is something we see 100% like all the time in audits and brands come to us and say,