"Be promiscuous" — Shark Tank investor Kevin O'Leary shares how broad testing leads to better ad performance

When it comes to advertising, Shark Tank investor Kevin O’Leary shared that he believes results come from experimentation. He recently outlined his approach in a video shared to Instagram on May 28, 2025, where he discussed how companies should test broadly before committing to a single platform.

"You know you want to be promiscuous and try every single channel and figure out which one works," O’Leary said.

He said that with both digital and traditional options on the table, the focus remains on determining which channel delivers the strongest return, then scaling accordingly.

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Shark Tank investor Kevin O'Leary urges marketers to test widely before scaling ad spend

Focus on platforms with low CAC and high ROAS

Kevin O’Leary highlighted customer acquisition cost (CAC) and return on ad spend (ROAS) as essential metrics for assessing advertising effectiveness.

“Figure out which vehicles produce the lowest CAC, the lowest customer acquisition cost and the highest ROAS, return on ad spend,” he explained.

His standard for success begins with achieving ROAS above a 3.5 ratio. He said businesses need to raise ROAS "above three and a half times" to reach profitability. In describing how this can work in practice, he added that some of his companies have reached ROAS levels of 7.5.

“I've had companies as high as seven and a half times,” O’Leary stated.

With that kind of performance, spending $100 on ads could bring in $700 in sales. Kevin explained this means the ad cost is covered and there's profit on top, showing that businesses are actually making money. He pointed out that once ROAS hits that level, profitability is built in.

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Evaluate every channel without preference

Rather than relying on a specific platform or trend, O’Leary encouraged businesses to evaluate each available advertising option. The Shark Tank investor noted,

“Is Twitter better? Is Facebook better? Is TikTok better? Is Instagram better? Whatever."

Once testing identifies a strong-performing channel, Kevin advised scaling efforts rapidly. He noted that performance varies depending on the business and target audience.

“Figure out which one works, and then pour gasoline on the one that works.” he added.

He noted that businesses should avoid assuming one platform is superior without verifying its effectiveness, adding that teams should focus on what "works" based on performance data.

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Traditional media like television can outperform digital media

While digital platforms often dominate marketing discussions, the Shark Tank investor said traditional media still plays a strong role.

“Recently, a lot of my companies are using television,” he noted.

To support that shift, he created Wonder Ads, a service designed to aggregate cable television buys and offer access to lower-cost airtime for short commercials. O’Leary explained that television can outperform digital under certain conditions.

“You can buy a 15 second commercial on cable television and it's less expensive than a Facebook ad or at least more productive,” he said.

According to him, many companies in his portfolio have shifted part of their advertising budgets to television due to its measurable performance. Kevin mentioned that "a lot of them use it," referring to this growing reliance on traditional formats that offer effective results.

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Catch Shark Tank every Friday at 8 PM ET on ABC, with new episodes available to stream the next day on Hulu.