Geek Speak Ep. 10: Beyond ROAS – Redefining Success Metrics for Modern Ad Campaigns

For years, Return on Ad Spend (ROAS) has been the primary metric used to measure digital marketing success. While it remains important, the digital landscape has evolved—making it crucial for brands to look beyond ROAS and embrace a broader, more strategic set of metrics.

At Alphageek, we believe that limiting success measurement to ROAS alone can lead to short-sighted decision-making, missed opportunities, and an underappreciation of the true impact of digital marketing efforts. This episode of Geek Speak will explore why brands need to move beyond ROAS and which alternative KPIs are shaping modern advertising.

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1. The Limitations of ROAS in 2025

ROAS is a simple equation—Revenue ÷ Ad Spend—but it doesn’t tell the whole story. There are several reasons why it shouldn’t be the sole metric driving your advertising decisions:

• ROAS doesn’t account for profitability: A campaign with a 5x ROAS might seem like a win, but if margins are tight, it could still be unprofitable.
• It ignores Customer Lifetime Value (CLV): A first-time customer might not be highly profitable immediately but could generate significantly more revenue over time.
• Short-term bias: ROAS tends to favour bottom-of-funnel tactics that drive immediate sales while undervaluing brand-building efforts.
• Attribution challenges: ROAS is often miscalculated due to tracking limitations, especially with the rise of privacy-first policies like iOS 14.5 and Google’s evolving cookieless environment.
• Customer Acquisition Cost (CAC) is equally important: CAC helps determine if your acquisition efforts are cost-effective in relation to how much revenue new customers generate over time. Relying solely on ROAS without considering CAC could lead to inefficient scaling.
• Marketing Efficiency Ratio (MER) provides a broader view: Unlike ROAS, which isolates ad performance, MER considers total marketing efficiency by dividing total revenue by total marketing spend. This makes it a valuable metric for brands looking to optimise across multiple channels.

However, it’s important to acknowledge that basing strategy around CLV, CAC, and MER can be a luxury for smaller businesses that need an immediate return. While these metrics help optimise for long-term growth, many startups and SMEs must prioritise short-term cash flow and profitability, making ROAS an essential factor in the early stages.

Alphageek Tip: ROAS should be viewed as part of a broader measurement ecosystem, not as the sole indicator of success. For insights on leveraging AI-driven automation in this evolving landscape, check out Geek Speak Ep. 9: Automation vs. Human Touch.

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2. The Role of Attribution Models in Success Measurement

At Alphageek, we often advise clients to establish a central truth of attribution—a defined set of attribution windows that they use consistently to judge success. The choice of attribution model should align with what the brand is looking to achieve, as different attribution windows offer distinct advantages and limitations.

Key Attribution Models & Their Uses:

• Last Click Attribution: ✅ Good for: Measuring the final step in the conversion process. ❌ Weakness: Undervalues upper-funnel activities that contribute to conversions.
• First Click Attribution: ✅ Good for: Understanding which channels drive initial interest. ❌ Weakness: Doesn’t account for touchpoints that nurture and close the sale.
• Linear Attribution: ✅ Good for: Assigning equal value to all touchpoints in the customer journey. ❌ Weakness: Not all touchpoints contribute equally; some drive action more than others.
• Data-Driven Attribution: ✅ Good for: Providing AI-calculated weightings based on performance trends. ❌ Weakness: Requires sufficient conversion data to be effective, making it less ideal for newer advertisers.
• Time Decay Attribution: ✅ Good for: Giving more credit to interactions closer to conversion. ❌ Weakness: May undervalue upper-funnel activities that build long-term interest.

A consistent attribution framework ensures that businesses don’t misinterpret performance, leading to better long-term strategic decisions.

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3. Essential Alternative Metrics for a Holistic View

To get a true picture of marketing success, brands should evaluate a combination of performance, retention, and brand equity metrics.

a) Customer Lifetime Value (CLV)

CLV is a more long-term, sustainable metric that assesses the total value a customer brings over their entire journey with a brand.

✅ How to calculate CLV: (Average Purchase Value × Purchase Frequency) × Customer Lifespan

✅ Why it matters: CLV helps businesses determine how much they can afford to spend on acquiring new customers without sacrificing profitability.

Alphageek Tip: If your business operates on repeat purchases, focusing on CLV will unlock smarter, long-term scaling strategies rather than just chasing short-term ROAS wins.

b) Blended ROAS

Blended ROAS accounts for all marketing spend (not just paid ads) and all revenue sources, giving a more complete picture of marketing efficiency.

✅ How to calculate Blended ROAS: Total Revenue ÷ Total Marketing Spend (including paid, organic, email, influencer, etc.)

✅ Why it matters: This metric helps evaluate how all channels work together rather than attributing success only to paid advertising.

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4. Implementing a Smarter Measurement Strategy

To transition away from an over-reliance on ROAS, brands should:

1. Align KPIs with Business Goals: Set clear, overarching business objectives and identify the metrics that align best with them.
2. Use Multiple Attribution Models: Don’t rely solely on last-click attribution—blend models like first-click, linear, and data-driven attribution.
3. Leverage Third-Party Measurement Tools: Platforms like Wicked Reports, Triple Whale, and Northbeam provide multi-touch attribution insights beyond in-platform data.
4. Build a Testing Framework: Regularly run controlled tests to understand incrementality and true ad impact.
5. Balance Short-Term & Long-Term Measurement: Brand-building efforts (content, organic social, PR) don’t show immediate ROI but are crucial for sustained success.

Alphageek Tip: Google and Meta’s AI-led algorithms continue to improve, making blended measurement more critical than ever. Don’t just evaluate what’s driving immediate purchases—track how your marketing ecosystem is influencing the full customer journey.

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Final Thoughts: A New Era of Marketing Success

As the industry shifts away from over-reliance on ROAS, brands that take a more holistic approach to measurement will be the ones that thrive. By incorporating CLV, CAC, MER, Blended ROAS, Incrementality, and a well-structured attribution model, businesses can build scalable, sustainable marketing strategies that drive real long-term growth.

At Alphageek, we work with brands to implement smarter measurement frameworks that look beyond the surface. Whether you’re scaling paid social, optimising Google Ads, or refining your email strategy, success lies in how well you interpret and action data across the full marketing mix.

Ready to move beyond ROAS and scale smarter? Let’s talk.