Channel ROI Needs Contribution, Not Just Revenue
Evaluate paid-channel ROI using contribution, CAC, and payback instead of revenue alone.
Revenue is often the headline. Contribution is the scaling signal. Why topline can mislead ROI compares return to cost, but the quality of the return matters. Paid acquisition can generate impressive revenue that arrives with discounts, low margin, high refund rates, or heavy support burden. When that happens, topline ROAS overstates the economic quality of the channel. Why attribution belongs in the discussion The reported winning channel may also be the channel that closes the path, not the one that created demand. Retargeting and brand search often look brilliant on raw attributed revenue because they capture already-warmed intent. That does…
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