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MenuWhat return on ad spend handicaps are typical for new user acquisition in big box retail environments?
I am working with a client that is pitching a big box retailer that the ROAS target for acquiring new users should be lower than the standard ROAS target because those new users increase the total aggregate lifetime potential revenue for the retailer.
1) Does this logic ring true?
2) Do you know of any retailers who actually do this, and how much of a discount are they willing to accept?
ie) normally the goal would be 5X ROAS for an electronics category, but for new users they would take a 3X…
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