Recently, we started working with a brand who came to us with a really common problem that I see many eCommerce brands struggle with.
The business in question was guaranteed a specific – and very high – ROAS (return on ad spend) by an agency pitching to win their digital advertising account. However, the results they’ve actually experience have been pretty disappointing to say the least.
Now, a high ROAS result is a common enticement many agencies use to win business and it’s designed to make the brand owner believe that they will grow faster and more profitably than any other alternative.
Which of course would have been true 5 years ago when digital advertising worked very differently: 5, 10 or even higher ROAS results off cold traffic were the norm back then.
However, not in 2024 and certainly not in 2025, when we now operate in a world with vastly restricted data tracking, much more intense competition for each website click as well as for each consumer dollar, and much lower consumer trust of any branded digital content.
And the end result is that the brand owner feels like they’ve been taken advantage of, or even burned by said agency.
Suffice to say, promising a ROAS result is not only foolish, but also flawed. For starters, with tracking and on-platform reporting so inaccurate now, you just can’t trust the accuracy of those reported ROAS figures.
Secondly, any really high ROAS figures I am seeing right now are pretty much always on campaigns going for the low hanging fruits – branded search terms and existing engaged audiences or repeat customers. Or campaigns offering really huge discount incentives. None of which you should be spending top dollar on with your advertising!
And thirdly, there is a massive assumption that achieving a specific ROAS automatically means that you must be making a profit on sales from those campaigns, after ad spend, product costs and other overheads.
But 99% of the time that is just not true.
In this episode, I detail this trap, and share the truth of what’s really happening, plus the solution. By the end of this episode, you will have a much better idea of WHY every eCommerce brand needs to have the Profitable Productpreneur growth system in place in their business.
Episode’s Show Notes: https://www.catherinelangman.com/episode-260/
Links mentioned in this episode:
If you’d like help to achieve your goals in 2024 I invite you to have a chat to find out how we can make that happen together.
Free 2025 Ecommerce Marketing Playbook: www.catherinelangman.com/playbook
Free Strategy Session: www.productpreneurmarketing.com/lets-talk
Other Ways To Enjoy This Episode:
Listen on Apple Podcasts: https://podcasts.apple.com/au/podcast/scale-my-ecommerce-store/id1496911739
Listen on Spotify: https://open.spotify.com/show/3NLRaZh2ReX0Iy7met8HK6
Youtube: https://www.youtube.com/@scalemyecomstore