Focus on Growth
ROAS only measures efficiency, but metrics like glance views, unique visitors, and shipped COGS are better at showing overall growth.
The Challenge
A CPG company with mature brands was focused on ROAS to determine success of ad performance.
Business was growing, but not growing as fast as desired.
GO strongly encouraged our partner to take the focus away from ROAS and focus on traffic and topline sales, to properly accelerate growth.
Our Solution
Altered the campaign strategy mid-Q2 to allocate between 65% - 80% of ad dollars towards acquisition, depending on the brand.
Monitored glance views, unique visitors, shipped COGS and TACOS (total ad cost of sale) as performance metrics.
TACOS is the percentage of total sales spent against advertising – Amazon reported the peer set at 25%.
Results
8% to 12%
in average QoQ sales growth
4% to 19%
in average glance view growth
11% to 13%
in average TACOS, well under the average 25%
Amazon reported for the category
After altering the campaign strategy in mid-Q2 Y2, the number of glance views, unique visitors, and shipped COGS rose significantly.
Attributed Sales only measure those who clicked on ads and doesn’t take into account the broader impact of advertising.
ROAS measures efficiency of advertising, but doesn’t capture the total productivity of advertising.