Everyone of your marketing channels should be profitable
No channel should ever be subsidizing the performance of another channel.
Never blend your ad costs into your total e-commerce revenue. That just hides the losers.
Each segment or campaign within a marketing channel should be profitable.
Don’t let your Facebook retention campaigns subsidize prospecting campaigns.
Don’t let your Brand search subsidize your non-brand search.
- Every channel should stand on its own
- Every segment should stand on its own
- Each should be profitable on its own
Can’t get your prospecting to be profitable? Then spend less. Or get more granular. Dig into what’s not working and cut it. Dig into what IS working and double down on that.
Or maybe your product is not good enough? Or your ads are not good enough? Or maybe this channel is not a good fit for your business. Or maybe you can only afford to advertise when your conversion rates are at their highest (think BFCM).
Or, maybe you’re okay with consciously losing money. That’s your choice. But don’t pretend like it’s not losing money.
Every channel needs to stand on its own.
Ad Heretic 