We’re all familiar with Average order value, average items per order, return on ad spend, cost of acquisition, advertising cost of sales, gross margin, return rates, conversion rates, retention, etc. But which ones drive the most profit for your paid campaigns?
Your advertising campaigns should always be optimized as tightly as possible so your advertising dollars are spent in the right way for the highest return. That is even more important when the economy is slower and consumers are spending less. To make our advertising dollars work harder, we need to focus on the most profitable advertising and grow those campaigns.
Focus On High Purchase Intent Campaigns
Understand Your LTV
Understand LTV Based On First Product
Set A Max CAC Per Product
Beware Of ROAS
Branding As Part of Performance Campaigns
Taking a holistic view at your business, you can build your brand while focusing on performance campaigns that generate positive ROI. Every advertisement builds your brand, even if its focus is a purchase. Keeping this in mind, you can craft powerful performance campaigns that convert while improving your brand. General branding campaigns are focused on reach and frequency, trying to expose your brand to as many people as possible. That is a great goal, but we consider it a stage 2. Stage 1 is generating as many sales as possible from your advertising while building your brand.