Measuring Ad Success Key Business Metrics Beyond CPA and ROAS

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How everyone measures clients wise.

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CPA ROAS like what am I getting cost

per conversion, blah, blah, blah.

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But there's the return on ad spend.

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these are the metrics that

we should be counting.

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Typically, this is how

everyone measures client wise.

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no CPA ROAS, like what am I getting

cost per conversion buble one,

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but there's a return on ad spend.

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these are the metrics that

we should be counting.

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This is something that all of these

will have a correlation to each other.

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They all work together.

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obviously CPC is going to be

different than ECPNV, which is

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the effective cost per new visit.

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that's how scalable a campaign is.

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there's more here.

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Obviously, there's frequency, which is

good, but that's an app platform metrics.

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Most of these that you'll see here on the

screen, CPCs in app CPN rows are an app.

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Everything else is not really in

app, like in metal or in Google,

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in email clients, whatever it is.

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so by scaling as example, if

you're a CPNB is too high, Okay.

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It's really difficult to scale your CPC

could be low, but depending upon campaign

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type by channel, if your is too high,

that's what actually is going to be.

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It's going to be scaling because

as you add in dollars, your is

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what you're adding dollars to.

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So that's when you said, the

CPC is maybe not what they were.

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They want it as well.

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It could be or it could not be.

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it all depends on what the difference

between the e ccp NV and the CPC is.

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CPC is indicative of just

a click from a network.

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E ccp, NV is how many are new.

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A lot of times, those are

way different metrics.

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so that's one of the thing that I'm

gonna be, giving that speech about.

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but that's also something that to

give you, I'll just do, this last

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seven days, for example, on Facebook,

I think, like the 3 range, like 2.

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90 3 range, but it actually is

costing him 5 for every new visit.

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So when you're looking at the

difference between Facebook and

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Amazon, we'll discuss this part later.

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But when they started to pull

back, they're like, oh, we'll

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have an economy of scale.

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we'll pull back the spend

here and we'll do better.

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And it didn't.

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And that's because they started

losing more new visits that returning.

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So scaling up or scaling down is

having the same effect because

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they're not actually controlling the

difference between CPC and ECP and me.

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So when they pull back, everything hurts.

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So that's, what's interesting.

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All these are correlated.

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and that's why I'm saying it's so unique.

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It's really, it's the customer journey

and that's the real unique part is

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you never want to pull back more

new visits than returning visits.

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Then your economy is

scale moving up or down.

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So this is a really complicated scenario.

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Cause just massive and has

millions of users like a month, but

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that's just like the thing where.

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We really have to go one by one to make

sure that if we're going to scale up,

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we don't use the current performance in

app because that is a snapshot in time.

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That's one, maybe fifth

of the user journey.

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so that's how we want to make sure we

think about this traffic is if it's

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scalable, why or why isn't it scalable?

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The other part, actually, what's

funny is in that same presentation,

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this part here, This is just

something that's good for everyone.

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The glass ceiling of diminishing

profitable returns misinterpreted by ROAS.

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The red line is where you hit

a point of diminishing returns.

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And so Google, people

usually overspend on Google.

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We overspend on Google,

because we're a Google agency.

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Typically we have been, and that's

where it's yeah, but you guys

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are the ones that should go where

maybe that's not necessarily true.

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The diminishing profitable return

at the point of diminishing returns.

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Cause Anything that over attributes, you

can scale that thing right up to the moon.

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And it just always get a, show

you a good profit return, but

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it's not affected by the backend.

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Meta is typically under utilized

because it always has like a 1.

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5 return because it's always

started the customer journey.

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And then Google's always overspent

because it's always like the last

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30 percent of the customer journey

that we get attribute, which means

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that it's always going to look good.

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So this one's understanding this

one's overspending and then.

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We are always person on

the other end of the call.

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That's Hey, solutions, eight.

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why don't you spend more?

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You're doing better than meta

and you gotta save my ship here.

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But that's because we haven't

identified the glass ceiling.

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So when we're scaling a client, my

always thing is, what are they doing?

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What channels are they running?

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Apple levels?

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What is the customer journey

that they're going through?

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Are we starting a lot of the journey on

meta that we're overspending on Google

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and overspending on Amazon because,

we don't control Amazon and people

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are just dumping in brand spend there

and it shows a 10 X return, but it's

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started by something else like YouTube.

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So these are always those kinds of

like points where we look at is when

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you're looking at omnichannel traffic,

we can scale, but should we scale?

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are we in that part

here in this, scenario?

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we're already here, we're

past point dimension returns.

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And Regina, you're asked, take it up here.

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It may not be a good idea.

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what other things are we doing?

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And are we under utilizing any

other channels at the time?

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or that's why I think that we're

thinking about a customer journey.

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We're really simple.

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We're in a war of attention with

everybody else for a product people want.

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Period.

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That's as simple as this really gets.

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That's why meta does so well.

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And it looks like it does poor

is when is the war of attention

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because they have a higher frequency

where Google gets like one click.

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so those are ways to think about it.