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In this episode, Jeremy Neisser discusses the concept of return on ad spend (ROAS) and shares a story about a team that realized their ROAS was wrong. The team hired an ad agency to manage their ad budget, and the agency reported a four-to-one return on ad spend despite a drop in attendance. 

However, upon closer examination, it was revealed that most of the reported conversions were from repeat ticket buyers, not new ticket buyers. The ad agency was taking credit for the marketing director's efforts to engage repeat ticket buyers. Neisser emphasizes the importance of understanding the difference between new and repeat ticket buyers and suggests using a marketing report to gain visibility into the impact of marketing efforts.

Takeaways

  • Return on ad spend (ROAS) can be misleading if not properly analyzed.
  • Ad agencies often take credit for the work of marketing directors in engaging repeat ticket buyers.
  • Understanding the difference between new and repeat ticket buyers is crucial for marketing success.
  • Using a marketing report can provide visibility into the impact of marketing efforts.

Chapters
00:00 - Introduction
00:41 - The Misleading Nature of ROAS
04:06 - Differentiating Between New and Repeat Ticket Buyers
06:23 - The Importance of Marketing Reports for Visibility
09:13 - Conclusion

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