The RoAS Trap — Why Profitable Doesn’t Mean You’re Winning
When it comes to Amazon ads, brands love to chase RoAS. And on paper, a 2x RoAS might sound great. You're doubling your return, right? But here’s the real question: is that return actually helping you grow?
When it comes to Amazon ads, brands love to chase RoAS. And on paper, a high return might sound great. You're multiplying your investment, right?
But here’s the real question: is that return helping you grow?
When you're focused on building visibility, the goal isn’t just efficiency—it’s momentum.
The most effective campaigns don’t always have the flashiest metrics. They’re the ones that help you show up, get seen, and stay in front of the right customers.
The Problem with Obsessing Over RoAS
RoAS is just one piece of a much bigger puzzle. Brands that aim for maximum efficiency often:
↳ Pull back too hard on broad awareness spend
↳ Miss out on organic ranking
↳ Lose ground in category visibility
If all you're optimizing for is ad efficiency, you're simply playing not to lose. You’re not playing to win.
Let’s be clear: RoAS is a valuable data point. But it’s not the final word on performance. Why? Because RoAS doesn’t measure momentum. It doesn’t tell you if your brand is gaining share, becoming more searchable, or winning head-to-head against competitors.
The Long Game Isn’t Always About Big Ad Spend
You don’t need a massive budget to grow on Amazon.
But you do need alignment between your strategy, spend, and stage.
Instead of chasing RoAS at all costs, smart brands ask:
↳ What else is this ad spend doing for me?
Done right, ads don’t just drive sales—they:
• Improve organic rank
• Build visibility across the category
• Feed data into future campaigns
Spend consistently. Track holistically.
That’s how brands win the long game
What RoAS Doesn’t Tell You
RoAS is a helpful metric—but it’s not the whole picture. Here’s what it misses:
Lifetime value of a customer
Repeat purchases, subscription behavior, and cross-sells don’t show up in your RoAS report.Visibility gains from improved ranking
Ad spend can boost organic rank—but that long-term upside doesn’t get credited to RoAS.How ads support other metrics
Better click-through rates and add-to-cart volume often improve your position in Amazon’s algorithm—even if RoAS looks flat.
A 1.25 RoAS might look weak. But if it boosts organic rank and drives trial for a repeat-purchase product? That’s a win.
Market Share Is the Mission
If you're in growth mode, RoAS should be one of many KPIs—not your north star.
You’re not in the business of ads. You’re in the business of gaining ground.
Every dollar spent on ads should help you:
Improve rank
Boost visibility
Increase frequency of purchase if you’ve got a renewable product
Even if that means your return looks “just okay” on paper.
The Bottom Line
Profitable doesn’t always mean successful.
Sometimes, spending more with less return leads to more share, better retention, and higher lifetime value.
RoAS is a metric. Market share is the mission.
