#marketing-paid
Thread
If lowering budget on our ASC scaling campaign doesn't improve efficiency (lower CPAs, increased ROAS) and subsequently profitability, then would you just increase the budget so you at least get purchase volume (opportunity for retention conversions, more users in your Q4 funnel, etc.) ?
Can we define effiency by volume of profit and capacity for scale instead of attribution based metrics that avoid growth potential?
my favorite: (and one used by a ton of the greats)
GPT
AOV - CPA
and find the highest allowable CAC
by measuring 2nd purchase rate by product
and pruning away the ads with an above average CPA and a below average GPT
and focusing the spend on New Customers against the offer/product with the biggest Absolute Profit Volume lift between day 1 and 2nd purchase or even 12 months
This is how you 2x-5x a brand
focusing on low CPA and high ROAS is 20-50% growth at best move
as long as every other team in the company is killing it
Low CPA / High ROAS is essentially just a boat floating in the ocean
you go where the market forces you and you try not to sink
we can 100% be in control, if we focus on more valuable data