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Why Ads Kill Retention Profit

Why Ads Kill Retention Profit

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In this episode, Scott and Nathan break down one of the most misunderstood ideas in eCommerce growth. That paid media should be used to drive retention.

They explain why most brands overspend on existing customers, why retention ROAS is often misleading, and how to think about repeat revenue through the structure of the business instead of the ad account.

In this conversation they cover:
• Why paid media is rarely incremental for returning customers
• How attribution inflates retention ROAS
• The difference between retention in CPG, fashion, and single SKU brands
• When spending on existing customers actually makes sense
• Why most subscription strategies fail
• What really drives repeat purchases outside of ads

This episode is essential listening for brands trying to scale profitably without masking deeper issues behind retention spend.



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