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Challenges
- Unprofitable Acquisition
CAC exceeded first-order gross profit, eroding the P&L and stalling scale.
- Data Ambiguity
No clear cohort/CAC payback analysis; attribution settings hid true incremental returns.
- Inefficient Account Structure
Google retargeting campaigns and unfiltered Meta objectives wasted spend on non-incremental audiences.
- Low Creative Impact
Sparse, undifferentiated ad tests yielded a sub-5% “high-performer” hit rate.
Solutions
- Data Integrity & Assurance
- Built a cohort CAC vs first-order gross profit matrix to reveal true payback periods.
- Targeted a 30-day CAC payback, pinning blended-CAC at profitable levels.
- Measured new-customer revenue only, isolating incremental lift from existing-customer P&L props.
- Technical Account Structure
- Google:
- Turned off high-budget retargeting (Performance Max) that drove brand clicks, not new customers
- Focused Shopping on cold audiences
- Meta:
- Switched all ads to 7-day-click attribution only (dropped 1-day-view over-attribution)
- Excluded existing customers & site visitors from cold campaigns
- ebuilt for “creative test” campaigns → audience-agnostic Adv+ scaling → dedicated retargeting
- Creative Velocity & Diversity
- Conducted historical creative audit, defining a ≥ 8% high-performer threshold.
- Increased systematic ad tests to 50+ unique creatives/month with clear concept-based grouping.
- Forecasted ad-volume vs revenue targets, ensuring each new asset delivered positive contribution profit.