Practitioner pattern · Eric Seufert (The Fabulous, Eric Seufert's previous employer (Facebook app advertiser, 2018))
Spend on your biggest channel until it hits your ROAS floor, then add the next
Advice from his consulting; keeps overhead and complexity low
Unknownpaid-socialpaid-search
What they did
When optimizing for maximum spend under a ROAS constraint: max out the biggest channel until it hits the ROAS threshold, then move to channel two until it hits the threshold, then channel three. Only add a channel when existing ones are saturated or it creates an interaction effect (e.g. brand channels). A new channel must exceed, not match, the ROAS existing channels would get on the same budget, because it adds integration, creative-format and measurement overhead. High ROAS at tiny spend is not a reason to add it.
In their words
Sub Club by RevenueCat · The Post-Attribution Playbook for Growth — Eric Seufert, Mobile Dev Memo“max out the biggest channel, right, until it hits my ROAS threshold, then move on to channel two”
“it's the ROAS doesn't have to meet the ROAS of the other channels that could have absorbed that budget, it has to exceed that, because you're supporting a new channel”
Related topics
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More from this episode
- The Fabulous: Have every team map its own path from no AI to full AI use
- Pull competitors' ads into storage and have an AI agent explain the conceptsReplaces a full-time manual job; commonly seen among app advertisers
- Auto-build every mix of your ad pieces and keep feeding them to FacebookWinners emerged with no human picking them; became his core creative-testing belief
- Add a pointless CAPTCHA and tell the ad platform who solves itAbout 40% higher ROAS, recalled secondhand
- Raise ad budget step by step as older cohorts prove their Day 30 and 60 ROAS
- Kill ads the same or next day once they clearly aren't winners