The Problem With ROAS

+ Are communities the new SEO?

👾 Leveling Up 👾

Welcome to Leveling Up. Today’s newsletter is a 5-minute read. 

Here are some things we’re going to cover:

  • 5 emotions to trigger with copy

  • Breaking $1m as an agency owner

  • How to calculate ROAS accurately

Eric Siu :)

Looking for a community?

We’ve just started a free community that anyone can join.

It’s a place for marketers and business owners to help each other and share what's working to grow faster.

If you’re a new marketer, it’s the ideal place to start.

Check it out here (link).

Here are some of the best links I’ve found since our last email.📈 SEO

Are communities the new SEO? (link)

🖊️ Writing

5 emotions that you should trigger in your copy (link)

🏢 Business

How to break $1m as an agency owner (link)

🎨 Branding

Why rebranding could be a huge mistake (link)

🤖 AI

10 examples of Claude 3.5 sonnet’s abilities (link)

Deep Dive: ROAS

Meta will tell you that your ads are hitting a 3 ROAS.

Google will tell you that its campaigns are achieving a ROAS of 4.

But, when you look at your overall spend and profit, you might be hitting a 2.75 ROAS overall. 

How can the platforms be so wrong?

  • Depending on where your conversion data is from, it could be modeled to make up for the loss of tracking due to cookie depreciation and ad blockers.

  • If a future purchaser is served one of your Meta ads, Meta will claim credit for the purchase (depending on the settings you have in your account).

  • Google will also claim credit for purchases or conversions if the customer interacts with your campaigns along the path to purchase.

This means that both Meta and Google could claim credit for the same purchase, making proper attribution a nightmare.

What can you do to understand what channel or campaign is working?

  • Invest in a 3rd party tool such as Northbeam, TripleWhale, or Rockerbox. These tools have their own system to tell you what is working and what isn’t. You can lose some visibility into how the campaigns influence each other and influence organic traffic. This option may come with a hefty price tag and requires some critical thinking and analysis to make it actionable.

  • Connect all platforms directly to your internal CRM. This limits the purchase modeling that occurs in platforms.

  • Run incrementality testing with strict parameters to better understand new efforts and how they impact your bottom line.

  • Calculate your marketing efficiency ratio (MER). This is the profit you earn from all channels divided by the cost of your marketing efforts. The goal would be to improve your marketing efficiency over time.

  • Hire a data scientist to run regression analyses and mixed media modeling for your business. This is likely the best data you could get, but it also is the least cost effective.

The best option for your business is likely a combination of two or three of the above options.

Our Paid Community

The Agency Owner's Association (AOA) is our paid community that is for expert agency owners looking to scale.

It’s $199/month, and you’ll receive:

  • Access to both mine and Neil Patel’s network

  • Access to all of our best training courses

  • Special deals on software

  • Strategies and frameworks

  • Resources and templates to build the right systems, processes, and structure

Apply and start scaling here (link).

How I Can Help You

If you enjoy this newsletter and would like to collaborate with me, there are a few options available:

  1. You can apply to work with my marketing agency (link)

  2. You can join my Skool community for agency owners (link)

Interested in working at Single Grain? We have some new open roles:

  • Business Development Representative (link)

  • Paid Media Manager (link)

  • SEO Manager (link)

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