¿Cuáles son los desafíos y dificultades más comunes del ROAS y cómo superarlos?

Optimizing your Return on Ad Spend (ROAS) can be tricky. Here are some common challenges and how to tackle them: 1. Focusing on Short-Term Gains: Balance immediate results with long-term growth for sustained success. 2. Ignoring Customer Lifetime Value (CLV): Consider CLV to understand your ad spend’s full value and appreciate long-term customers. 3. Overlooking Attribution Models: Use the right attribution model to see which touchpoints drive conversions. Multi-touch models offer deeper insights. 4. Neglecting Creative Quality: Invest in high-quality, engaging ads. 5. Poor Budget Allocation: Allocate budget wisely, focusing on high-performing keywords and campaigns.

~ Inaccurate or inconsistent data can lead to misleading ROAS calculations. ~ To overcome this challenge, ensure data quality by implementing robust tracking mechanisms, regularly auditing data sources, and using reliable analytics tools. ~ Establish data governance processes to maintain consistency and accuracy across all marketing channels and touchpoints.

Walk before you can run, and prioritise what's most important vs. what is a nicer to have e.g. can you use aggregate revenue figures for online channels for an interim period (as opposed to for every channel and platform). Consistent formatting of historic data is particularly important for modelling such as econometrics, which will be an additional view of performance (but less real time).

Getting the data right is where many companies trip up in ROAS. It's not just about big campaigns; it's about nailing the basics first. Simple checks to your tracking setup can save a lot of headaches later. Spend more time on this groundwork – it's the backbone of everything else. Solid, reliable data on your ad spend and returns across various channels aren't just nice to have; it's a must. Think of it as setting the stage for all the following marketing activities.

Attribution and allocation can be tricky waters to navigate in ROAS analysis. Different channels and touchpoints contribute to conversions in varying degrees, making it challenging to attribute revenue accurately. To overcome this challenge, adopt a multi-touch attribution model that considers the influence of each interaction along the customer journey. Additionally, allocate your marketing budget based on the channels that drive the highest returns, leveraging data-driven insights to optimize your investment.

Challenge: Difficulty in attributing sales to the right channels. Solution: Use multi-touch attribution models to understand the impact of different channels. Allocate your budget based on these insights to ensure each channel is fairly credited for its contributions.

Don't get tricked by the fact that final results appear in remarketing and branded campaigns with last-click attribution. Look at the overall performance of your marketing and specific channels as a whole. Use MER (Marketing Efficiency Ratio) to understand the big picture. Your cold traffic builds success of your remarketing and branded traffic search campaigns. With Amazon, cold traffic even builds organic results. Your cold campaigns will result with lower ROAS, which is normal. Just make sure they bring quality traffic to your website. To measure the post-view results of video and display campaigns, try using coupon codes, to understand whether these add any incrementality. This is the simplest way.

In practice, there's a tendency to regard the ROAS displayed in systems as concrete. However, this perception isn't entirely accurate. Customer journeys are becoming increasingly complex, making the traditional concept of attributing activities to a sales funnel somewhat outdated. Understanding incrementality is crucial in recognizing the true value and challenges of ROAS. If an activity drives an incremental outcome, then the ROAS is generating real economic value for the business. While gathering data signals, data-driven attribution models can capture reality more accurately than traditional single-touch attribution methods. However, even these advanced approaches may not fully grasp the nuances in an environment marked by data scarcity.

Misattribution, or the inability to determine which channels or touchpoints generate revenue, is a prevalent ROAS problem. This may result in a poor distribution of marketing budget. Use a strong attribution model that takes into account several touchpoints to get around this. Customer journeys can be tracked with the use of tools like Google Analytics, which makes budget allocation and decision-making more precise.

The real challenge lies in managing marginal ROAS. It's a tricky balancing act with multiple variables – not just marginal costs and revenues but also factors like competition and timing. Understanding these fundamentals is key. It's not just about increasing ad spend or cutting costs for profitability; it's about smartly navigating these elements to find that sweet spot for each campaign. Grasping these nuances is what sets apart successful ROAS optimization.

Often the most efficient channels will not be possible to scale in isolation (e.g. PPC Brand or Retargeting tactics) as they will either reach diminishing returns or stop scaling sales volume, so you need to have a full-funnel strategy to scale.

The most common ROAS challenges include inaccurate attribution, ad fraud, seasonal fluctuations, and ad fatigue. To overcome these, use advanced attribution models, employ ad verification tools, develop seasonal strategies, and regularly refresh ad creatives.

Optimizing and scaling ad campaigns to maximize ROAS involves balancing ad spend with profitability and leveraging key factors like targeting, creative, and bidding. To overcome this challenge, adopt a data-driven, iterative approach, utilizing tools like automation and machine learning to refine strategies and enhance ROAS. Regular experimentation helps identify the most effective tactics for scaling.

~ Setting realistic ROAS goals and benchmarks is essential for evaluating campaign performance and guiding optimization efforts. ~ Benchmark your ROAS against industry averages, competitor performance, and historical data to assess your performance relative to peers and identify areas for improvement. ~ Set SMART (Specific, Measurable, Achievable, Relevant, Time-bound) goals that align with your business objectives and track progress regularly to stay on track.

Benchmarks for ROAS are primarily derived from business insights. The economic value that an activity is expected to generate often dictates these benchmarks. However, the specific signals used to determine the ROAS are critical levers for adjusting them. When a business can effectively operationalize CRM insights to ascertain ROAS, it can significantly alter the execution of marketing activities. For instance, if the most attractive audience segments are passed on to advertising systems, the quality of data improves. This enhancement in data quality leads to a more accurate assessment of the true economic value, thereby offering a more accurate perspective on the benchmark.

Challenge: Setting unrealistic goals or benchmarks. Solution: Use historical data and industry standards to set achievable benchmarks and goals. Regularly review and adjust them based on performance and market changes.

~ Effective reporting and dashboarding are crucial for monitoring ROAS performance and communicating insights to stakeholders. ~ Create custom dashboards that visualize key ROAS metrics and KPIs in real-time, allowing for quick insights and decision-making. ~ Regularly analyze ROAS performance trends, anomalies, and correlations to identify opportunities for optimization and inform strategic decisions.

I have seen people spending weeks crafting the perfect campaign, only to have stakeholders glaze over at a spreadsheet. In my experience, the magic trick is storytelling with data. For a recent client, we built a dashboard that looked like a stock ticker, but tracked key ROAS metrics by product category. Suddenly their board meeting turned into a thrilling watch party as a new ad group surged in performance. Data visualisation is powerful, but transformation happens when you turn numbers into a narrative!

Reporting and dashboarding play a crucial role in ROAS analysis, but they can become pitfalls if not executed effectively. Ensure that your reporting tools are integrated across all relevant platforms to capture comprehensive data accurately. Create customized dashboards that provide real-time insights into key ROAS metrics, allowing you to identify trends and anomalies promptly. Moreover, streamline your reporting process by automating repetitive tasks, freeing up time for in-depth analysis and strategic decision-making.

Challenge: Ineffective reporting can lead to misunderstandings. Solution: Create clear, concise reports and dashboards that highlight key metrics and insights. Use visual aids and summaries to make data easy to understand for all stakeholders.

Doing what's been done before won't guarantee results in future so you need to have allocation for innovation / experiments / test and learns where it's okay to fail.

ROAS is a tricky metric. Some products may be more profitable with 400% ROAS than other products at 1000% ROAS. If you mix these two groups, and set high ROAS targets, the first group will receive less ad budgets – which means less reach and conversions in this group. The easiest thing to do would be to separate products into different groups or campaigns by their break-even ROAS. The optimal way would be to switch to POAS (Profit on the Ad Spend). This ensures that each product gets the most ad spend allocated it can get from the ad systems. It lets them bid aggressively to win while still keeping your campaigns profitable. POAS also lets you steer margins more easily.