Executive Summary
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Specific: "More sales" is not a goal. "$50k Revenue" is.
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Measurable: Can you track it in Ads Manager? (CPA, ROAS, MER).
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Achievable: Don't target $1M revenue with a $500 budget.
In our audits, we ask "What is your goal?" The answer is usually "To scale as much as possible." This is a recipe for bankruptcy. Without a specific target, you cannot reverse-engineer the required budget, traffic, or conversion rate.
Applying S.M.A.R.T. to Media Buying
S - Specific
Bad: "Get more leads."
Good: "Acquire 50 qualified B2B leads for the SaaS product."
M - Measurable
Bad: "Build brand awareness."
Good: "Achieve a Cost Per Lead (CPL) under $35.00."
A - Achievable
Bad: "10x ROAS in week 1."
Good: "Improve ROAS from 2.0 to 2.5 over 30 days by cutting wasted spend."
R - Relevant
Does this metric actually drive profit? (Stop optimizing for Click-Through Rate. You can't deposit clicks in the bank. Optimize for Purchases).
T - Time-Bound
"By the end of Q1." Without a deadline, optimization never happens.
Leading vs. Lagging Indicators
Most founders look at Lagging Indicators (ROAS, Revenue). By the time you see them, it's too late. You need to track Leading Indicators.
- Leading Indicator: CPM, CTR, Thumbstop Rate. (These tell you if the creative is good TODAY).
- Lagging Indicator: ROAS, MER. (These tell you if you made money YESTERDAY).
Strategy: If CTR drops below 1%, kill the ad BEFORE your ROAS tanks.
Beyond ROAS: The MER Metric
Smart founders also track MER (Marketing Efficiency Ratio). This is Total Revenue / Total Ad Spend. It accounts for the holistic impact of your ads, including email signups and organic lift.
Target: We aim for a 3.0 MER (Spend $1, Make $3 Total Revenue) for healthy scaling.
Sources & References
- 1. Drucker, Peter. The Practice of Management. (Origins of MBO/SMART).
- 2. Doran, G. T. (1981). "There's a S.M.A.R.T. way to write management's goals and objectives".