"Teams chase increasingly impressive efficiency numbers, and while campaigns look better on paper, volume is capped and numbers plateau, leading to confusion despite improving metrics."
"When a brand optimizes from a 7x ROAS to a 10x, they may inadvertently reduce future scaling opportunities, as the campaigns running at lower ROAS could have expanded reach and built growth."
"Efficiency and growth aren't the same thing; at a certain point, they are in direct tension, which necessitates splitting growth and efficiency targets to optimize separately."
Performance marketing often focuses on improving metrics like ROAS and CPA, leading to over-optimization. This can cap volume and hinder future growth. For instance, a campaign achieving a 7x ROAS may be profitable, but pushing for a 10x can limit audience reach and future scaling. Efficiency and growth can conflict, necessitating separate optimization for acquisition and retention. Additionally, channel-level optimization can overlook the broader business context, leading to suboptimal decisions that affect overall performance.
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