Case Study: Maximizing Gross Profit, not ROAS
Vida | 17 March, 2009
Company: Financial Services Firm
Overview: We had been consistently hitting the client goal of a 5:1 Return On Ad Spend (ROAS), but knew that his margins and the non-linear relationship of ad placement to volume created an opportunity for increased profit. We asked that he relax his strict ROAS requirement.
Result: By moving to a 4:1 ROAS his per-transaction profit dropped, but his aggregate profit almost doubled as we found substantially more volume.
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