What Should Your ROAS Target Be?

Here's a conversation that everyone in DTC has had too many times:

Agency: "What's your ROAS target?" Brand: "Well, what's a good ROAS on Meta?"

That conversation is broken on both sides. Great agencies help brands determine that answer; great brands know it isn't as simple as that.

In this episode, I'm helping you answer this question the only way you really can: with a hard look at your unit economics and customer lifetime value.

IMPORTANT NEWS!

The Andrew Faris Podcast is now available on YouTube! If you prefer to watch your podcasts, ⁠click here⁠ or head to www.youtube.com/@andrewfarispodcast to visit the AFP channel and subscribe.

EPISODE HIGHLIGHTS

• [00:00:11] Determining target is crucial.
• [00:04:33] ROAS target depends on CAC.
• [00:10:09] Profitable ecommerce: first order profitability.
• [00:14:06] Focus on first purchase unit economics.
• [00:18:51] LTV affects target setting strategy.
• [00:23:51] Forecast LTV for business success.
• [00:28:04] No takeaway.

EPISODE SPONSOR

Virtual assistants can be helpful. Virtual professionals can transform your business. Get connected to incredible ecommerce talent from the Philippines with More Staffing by visiting www.morenow.co.

EPISODES REFERENCED IN THIS SHOW

• "With $10M In Revenue And $0 In Ad Spend, Isaac Medeiros Is In A Class Of His Own" (⁠Apple⁠, ⁠Spotify⁠)

OTHER LINKS FROM THIS SHOW

• The Lightspeed Ecommerce Forecasting Model
  

FOLLOW UP WITH ANDREW

• Follow Andrew on Twitter: ⁠⁠⁠⁠⁠⁠⁠@andrewjfaris⁠⁠⁠⁠⁠⁠⁠
• Email Andrew: [email protected]
• Work with Andrew: ⁠⁠⁠⁠⁠⁠⁠www.ajfgrowth.com⁠⁠⁠⁠⁠⁠⁠

EPISODE MUSIC

• Music Intro: "⁠⁠⁠⁠⁠⁠⁠Tell Me Mama⁠⁠⁠⁠⁠⁠⁠" by The Devious Means
• Music Outro: "⁠⁠⁠⁠⁠⁠⁠Rusty Little Scissors⁠⁠⁠⁠⁠⁠⁠" by The Devious Means