High ROAS is KILLING Your Brand (And You Don't Even Know It)
Here’s a tough pill to swallow — chasing a high ROAS might actually be costing you growth and customers.
Over the last few months, we’ve been deep in the weeds with brands trying to “beat” their ROAS targets, only to realize they’re leaving massive opportunities on the table by focusing on the wrong metric.
In this episode, we’re tearing down the myth that higher ROAS is always better. Instead, we show why the smartest brands are going after the lowest sustainable new customer ROAS to dominate ad auctions, outbid competitors, and drive real profitability.
This isn’t guesswork. We share real client examples where dialing down the ROAS target, backed by strong retention and lifetime value, created insane competitive advantages.
Ready to rethink your ROAS strategy and win the auction? Let’s dive in.
Key Takeaways:
- 00:00 Intro
- 00:42 Defining Acquisition Media Efficiency Ratio (aMER)
- 01:48 Critique of chasing high ROAS benchmarks
- 04:24 Winning ad auctions with lower bids
- 07:39 Importance of aligning aMER with profitability goals
- 10:03 Role of retention and LTV in lowering aMER targets
- 11:37 Common client misconceptions about ROAS and profitability
- 14:58 Business model impact on aMER targets
- 17:29 Profitability targets affect acquisition strategy
- 18:37 Why agencies must integrate forecasting and LTV knowledge
- 20:40 Outro
Additional Resources:
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The Bottom Line is your go-to podcast for honest ecommerce conversations on profitable growth strategies. Join Cody Wittick and Taylor Lagace, Co-Founders of Kynship, as they explore the challenges of scaling brands, uncover actionable tactics, and share real-world insights to help you grow your ecommerce business to 8 figures and beyond!
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