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Welcome to the fourth video in the joint Wpromote and Google video series! In this series, Wpromote Founder & CEO Michael Mothner meets with Google’s Katheline Jean-Pierre for a series of interviews at Google HQ to discuss Wpromote success stories, our recommendations to supercharge your digital efforts, our marketing strategies, best practices, and more! The first few blog posts in the series can be found listed at the end. Meanwhile, check out our fourth video below:

Return on ad spend, or ROAS, is a critical metric that many marketers rely on to measure the success of their marketing campaigns. Mothner discusses the history and development of ROAS, from the beginning of optimizing campaigns for clicks to optimizing them for cost and value, and how in the future marketers will begin to optimize their campaigns ideally for profits. Optimizing for profits requires realizing that “not all revenue is created equal” – wherein understanding your profits by group or division allows you to best optimize for the bigger picture.

The question of lifetime value, or LTV, is closely tied to the idea of ROAS. Mothner points out that LTV requires taking into account the profits of not just today, but of the repeat customer who buys a product each year going forward. Addressing that investment in relation to the actual profit coming from that customer not just in terms of immediate revenue, but revenue in years to come, helps a brand unlock their true growth.

history of roas

Watch the rest of the video for more of Mothner’s input on the utility of ROAS and how your brand can use it to best optimize revenue over the course of the customer lifecycle. Come back to this blog as we continue to post more videos in the Wpromote and Google video series! You can also check out the previous blog posts we’ve done:

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