13 Feb ROI vs ROAS: Which is the Better Metric for Digital Advertisers?
We hang our hat on our ability to deliver the right ad to the right person at the right time and we’re expanding that even further with our new DCO (dynamic creative optimization) functionality just announced today.
Our COO, Darryl LaRue put it best: ““DCO is a perfect complement to our portfolio of solutions and will provide a great opportunity for advertisers to increase campaign performance beyond the current success they’re experiencing today with our First-Party platform.”
Read on for complete details or of you’d like to connect with our team to learn more, reach out NOW.
At a conference years ago, I heard Paul Ryan, Overture’s former chief technology officer, debate the benefits of optimizing to the return on investment (ROI) metric vs. the return on ad spend (ROAS) metric. In those days, many marketers optimized paid vs. organic search, and all marketers focused on acquiring leads from a single page – the search page. Ryan advocated the advertiser-centric ROAS metric, reasoning that just one conversion could yield a 100% ROI, but one conversion does not make a viable business.
Processing Signal not the Noise
As more and more advertisers are making critical campaign decisions based on measurement data and are moving to a continuous optimization process for their display campaigns, it is important to build an accurate measurement framework to inform targeting and enhance campaign performance. This likely will come from a brick by brick approach versus a single black box solution to create a transparent measurement framework that can effectively process the signal-not the noise.