#paid-media
Thread
When you are still a young brand, what do you set your daily budget at for Paid Ads (Meta)?
Also if you are constantly seeing a $60-$70 blended CAC on a $100 AOV, what would you do?
what are your margins?
70-ish
so on a $100 item it's 70% margin to work with?
what's your monthly fixed costs?
Yes, that is my GM% - My breakeaven CAC (inclusive of operational costs) is $45-50
those are awesome numbers honestly. What is stopping you from upping budgets?
Primarily because CAC fluctuates heavily. I am not getting to first order profitably. There are days that we don't get orders from Meta even with the budget we have.
What other platforms are you on?
is the product a repeat purchase or likely one time
We have a 20% repeat purchase rate so far
return rate?
We’re primarily on META but some google and affiliates
meaning returns, not repeat buyers
Less than 10% return rate
Do you have a set amount of cash to test and find a solution, or do you need profit off the bat to run?
I don’t think you can expect similar CACs day over day, more like WoW. The likely real answer is to have a better understanding of LTV by customer segment and bid on meta this way.
For simplicity sake I’d say move the budget up incrementally until you find some level of consistency then focus on understanding LTV.
I don’t know many in your vertical that are profitable day one. Have you checked out true classic tees?
Thanks for sharing J! I agree, but it’s hard to find consistency that’s why I’ve been reluctant.
Fergal - I guess my question is just that: What should be the budget where you can see stable results. Is it $100 a day or $1000
Typically for appeal brands I see something between 1-5k have relatively predictable performance. Also note the massive amount of factors you can’t control (like prime day) that impacts this as well