Stop turning off your top spending ads for god's sake. Stay with me now Optimizing always only for that CPA or ROAS is hurting your ads. The main indicator of success in 99% of the time is ad spend on the ad. Having a top spending TOF-based ad which has 10% lower KPI than the rest of the accounts doesn't justify pausing it. That ad is doing the heavy lifting for all the other ads. You need to look at the accounts performance in blended metrics. Example: The agency provides the brand with a regular amount of creative. They are producing mostly full funnel ads or TOF-based ones. The client is doing mostly statics. As you can expect internal ROAS is better so brand start pushing the agency to "improve performance" The agency has started doing more MOF/BOF-based ads and window-shopping concepts. Their performance goes up while accounts start to suffer. There is a lesson in there.
Yesss - we need more speak of blended metrics *and* canonical results rather than attributed ones. Matej Dolenec when you say 'internal ROAS' is that the same as MER (total revenue / total marketing spend)? Or are you still attempting to isolate performance of one channel vs. another?
Having this argument with a client right now. Doubled their rev in 4 short months but just keep wanting more and their recommendations aren’t creative focused. Success doesn’t happen overnight. 👏🏼
Matej Dolenec that makes sense. But when do you turn off a creative that takes all spend, but is overall way worse on the blended metrics than the previous one?
I agree. Most people just take the loss of pausing the highest volume producing ads just because the CPA is high and ROAS goes down a little and they even realize: - TOF results in direction purchases - TOF results in conversions coming from branded search campaigns via google ads - TOF is nurturing the potential customers as each customer has its very own complex buyer journey due to various reasons. That's why MER is so important - Blended CAC, Blended Revenue - AOV & LTV. If brands operate based on how much they are pushing in and getting out at an overall level they'll be profitable. Ofcourse TOF, MOF, BOF, AD Types, OFFER TYPES all plays its part, the whole focus of TOF should be acquiring as much as customers as possible at a reasonable cost. Big brands doesn't put much emphasis on direct ROAS or CPA but CAC & AOV. Very well point is highlighted here. AND Most people don't even calculate their actual AOV and LTV, nor do they know the new customers' CACs and existing customer's CACs. they numbers makes all the difference
When they filter by ROAS dude…
"Balancing ad spend and performance metrics is key. Don't just focus on CPA or ROAS; consider the contribution of each ad to overall performance. Top spending ads often do the heavy lifting for others. Blend metrics to understand true impact. Let's optimize wisely!
There should be some ads that give a high number of volume then we can compromise KPIs for some time if that ad is consistent for couple if month's.
The Golden Rule
Keep those top spenders active! Blended metrics matter more than isolated KPIs. Great insights!
I scale TikTok Shops to $100k/mo. for 7-9 figure DTC Brands | Ex-Jet.com, Ex-BCG, Ex-Verb Energy, Ex-Park District Basketball MVP
6moNice post Matej Dolenec! Most people will admit they don't trust attribution but still think they know down to the ad level the level of impact on the business lol. Spend/ability to scale needs to be considered when you're looking at performance.