If your sales process is longer than 7 days, don't media buy with data inside of Meta only. Meta's tracks conversion for 7 days. (Note: there are more advanced ways to send offline conversions but the average ecommerce brand doesn't send data this way.) I spoke to a brand today generating a million a month in revenue, committed to 3x-ing their revenue but said they couldn't make decisions because ROAS would go down. It's less about what's happening with ROAS in platform alone and more about the full picture. The full picture for new customer acquisition for him includes: 1. Geographies they're advertising in (ROAS is different per market) 2. Definition of the lowest affordable CPA / ROAS on new customers (in platform and business wide) 3. Definition of new customer volume required to triple revenue 4. Definition of new customer AOV 5. Spend required to hit volume targets 6. Target LTV lifts in 90 day cohorts This is a snapshot of the initial metrics that must be defined to align strategy to execution. Right now, it's more execution without strategy. He was honest and said "I don't know the problem so I don't know how to solve it". Let the games begin! _____________________________ ♻️ Sharing is caring - will appreciate a repost, so more people can scale businesses faster. And follow Nehal Kazim for more content like this!
This is a crucial reminder of the limitations of relying solely on Meta for media buying, especially for businesses with longer sales cycles
Understanding the full picture is key to scaling your business efficiently. Let's strategize for success.
The "I don't know the problem" quote is a powerful reminder of needing clear goals before diving into execution
The conversation with the brand generating a million a month in revenue underscores the complexities involved in scaling businesses, particularly when it comes to media buying and ROI analysis
Challenging... 👀
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Appreciate the emphasis on aligning strategy with execution and defining key metrics upfront, which is essential for success in today's competitive landscape