This podcast episode discusses the challenges faced by rapidly growing e-commerce brands (>$50 million revenue) experiencing slowed growth despite increased ad spend. The hosts explore how traditional marketing measurement systems, focused solely on direct-to-consumer website sales (e.g., new customer ROAS), become inadequate when brands expand to marketplaces like Amazon and diversify their media channels. They highlight the need for more comprehensive measurement that accounts for revenue across all sales channels and the impact of advertising on both new and returning customers. The hosts suggest conducting incrementality studies to accurately assess advertising ROI and recommend restructuring internal reporting to include all revenue streams for a holistic view of marketing effectiveness. Failing to adapt measurement strategies can lead to underinvestment in advertising and ultimately stifle growth.
