The document discusses shortcomings with the current AdWords agency model and ROAS metric. It argues that ROAS can be misleading as a key performance indicator if it does not account for advertising volume and total revenue. The document proposes an alternative model where agencies are paid based on improving profitability and volume, using total revenue and cost per acquisition as key metrics. It invites the reader to learn more about their proposed model by contacting the company.

1. Rethinking
AdWords

2. The Current Model IsAgencyFee
Ad Spend +-
+-

3. It rewards agencies for
spending
your money
instead of
making
you money

4. Why Not
Manage
ROAS?

5. ROAS is lacking a key dimension....
The Problem
AdSpend
Revenue

6. VOLUME
ROAS doesn’t account for....
AdSpend
Revenue
Volume

7. ROAS can be Misleading

8. Ad Spend: $2,000
ROAS=400%
Revenue: $8,000
“Keep your
eye on the
ROAS”

9. Ad Spend: $500
ROAS=400%
Revenue: $2,000
“Keep your
eye on the
ROAS”

10. Ad Spend: $500
ROAS=400%
Revenue: $2,000
“Keep your
eye on the
ROAS”
If you only looked at ROAS
you might have missed the
fact that your revenue just
fell by 75%

11. Ad Spend Revenue
$500 $2,000
$1,000 $4,000
$1,500 $6,000
$2,000 $8,000
..... .....
ROAS=400%
In all of these (very different) cases

12. ROAS=400%
In all of these (very different) cases
But
you’d
rather
be
here
Ad Spend Revenue
$500 $2,000
$1,000 $4,000
$1,500 $6,000
$2,000 $8,000
..... .....

13. SPENDING A LOT
MAKING A LOT

14. Don’t Spend
orMore Less

15. SPEND
BETTER

16. OUR MODEL
Pay us to make it better
or don’t pay at all

17. key performance indicatior
Profitability
X
Volume
G8A KPI

18. Total Revenue
Cost per Acquisition
key performance indicatior
G8A KPI

19. Total Revenue
Cost per Acquisition
key performance indicatior
G8A KPI
Take a peek
under the hood:
See the math..

20. Want To Learn More?
CONTACT US:
sales@group8a.com | group8a.com | 646-374-8771