Beyond ROAS: Why Leading CMOs Are Shifting to Profit-Driven Marketing with POAS
- Humble Venture Group
- Jan 14
- 2 min read
Updated: Jan 15
In a strategic dialogue with Frederik Boysen, CEO of ProfitMetrics, HVG's CMO Malick Jarboh examines why marketing leaders who continue to optimize for ROAS are leaving significant value on the table. Here's why this matters for your organization.
See the podcast video episode at the bottom of this page!
The Hidden Cost of ROAS Obsession
Strategic analysis reveals that marketing teams optimizing solely for ROAS overlook critical aspects of their actual business impact. While e-commerce operations celebrate seemingly impressive ROAS metrics, true profitability often erodes through unaccounted costs in shipping, payment processing, and returns.
The Strategic Shift to POAS
The solution lies in a fundamental pivot to Profit on Ad Spend (POAS). This represents more than a metric change—it's a complete reimagining of how we measure marketing's contribution to enterprise value. Organizations optimizing for profit rather than revenue are demonstrating significantly higher marketing efficiency and accelerated growth rates.
Three Critical Success Factors
Through detailed analysis, three non-negotiable elements emerge for modern marketing measurement:
Real-Time Profit Intelligence Monthly P&L reports are obsolete in today's dynamic market environment. Leading organizations demand instant profit visibility at the campaign level.
True Break-Even Analysis Understanding actual break-even points—incorporating all variable costs—transforms how organizations approach scaling decisions.
Holistic Performance Framework Success requires moving beyond channel metrics to measure marketing's total business impact, including customer lifetime value and brand equity.
Strategic Partnership
For organizations ready to transform their approach to marketing measurement, our team of elite strategists brings deep expertise in implementing profit-driven frameworks. Connect with us to explore how we can help architect your transition to profit-driven marketing measurement.
Dive Deeper: The Full Strategic Dialogue
Watch the complete discussion between Malick Jarboh and Frederik Boysen for comprehensive insights into implementing POAS frameworks and achieving sustainable profit growth.
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