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Challenges
- Unprofitable Acquisition: Blended CAC sat above first‐purchase profit.
- Obscured Incrementality: Platform attributions and mixed “all‐customer” metrics masked true new‐customer impact.
- Limited Creative Testing: Low volume of new ads and a sub-optimal hit rate stalled scale.
- Fragmented Structure: Cold-prospecting campaigns were blurred with retargeting, diluting budget and data clarity.
Solutions
- Data Assurance & KPIs
- Switched to new-customer revenue only for all efficiency metrics (Acquisition MER).
- Removed one-day-view attributions; standardised on 7-day click to eliminate over-crediting.
- Built cohort-based CAC payback analysis to set a hard CAC ≤ first-order profit target.
- Technical Account Structure
- Segmented cold vs existing customer campaigns; excluded returning buyers from prospecting.
- Consolidated Google into lean brand search + non-branded Shopping with strict negatives.
- Turned off non-incremental objectives (Traffic, View-Content); focused Meta on conversions.
- Creative Velocity & Diversity
- Audited historical ads to define a “high-performer” spend threshold.
- Ramped up systematic testing to 20+ new creatives/month—grouped by concept & angle.
- Forecasted ad-level contribution profit to ensure each asset out-earned its production cost.