Introducing Marginal ROAS and CPA

For too long, marketers have been relying on Average ROAS and CPA — metrics that can often be misleading.

If you’ve ever poured more budget into a high-ROAS campaign, only to see returns shrink, you’ve experienced this firsthand. Here is a great article explaining why it happens.

Marginal ROAS and Marginal CPA metrics solve that problem by giving you a clear picture of how much additional revenue you’ll generate with every new dollar spent.

Why is Marginal ROAS such a game-changer?

Average ROAS can trick you into thinking a campaign is performing well, even as additional spend brings diminishing returns. Marginal ROAS gives you a much more accurate view by focusing on the returns from incremental spend, helping you allocate your budget more effectively.

Here’s how it helps:

• Avoid wasting money on campaigns that seem successful on the surface but are no longer delivering good returns.
• Boost profitability by investing in campaigns that still have room to grow, even if their Average ROAS isn’t the highest.
• Improve overall ROAS by allocating budget where it will drive the best results going forward, not just based on past averages.

With Marginal ROAS, you’re not just looking at how your campaigns have performed overall — you’re making sure every new dollar works as hard as possible.

Curious to learn more?

Connect with your Customer Success manager, or request a SegmentStream demo if you aren’t a SegmentStream customer yet.