When your ROAS looks good but you're still burning money
Original: Why Marginal ROAS Matters and How to Measure It - Tomi.ai
Summary
This article discusses the importance of measuring incrementality and causal impact in marketing campaigns, rather than relying solely on ROAS. It covers methods like geo-split tests, hold-out audiences, and ghost ads to establish true lift and isolate the causal effect of marketing investments.
Who This Is For
Performance Marketers
Marketing Managers
Marketing Analysts
Key Takeaways
- Calculate marginal ROAS using the formula: ROAS * n, where n typically falls between 1/2 and 2/3 for most campaigns
- Use historical spending vs revenue data to find your campaign's diminishing returns multiplier
- Set bid caps based on marginal ROAS (multiply your minimal ROAS by 1.5) to prevent overspending on Facebook campaigns
- Apply incrementality thinking to exclude organic conversions and isolate true campaign impact
Tools & Technologies
Facebook Ads Manager CRM systems Statistical analysis tools Tomi.ai predictive models
Topics Covered
incrementality lift-testing causal-inference
Ready to dive deeper?
Read Full Article on tomi.ai
