There's a new trend driving successful digital advertising campaigns: profit-driven marketing. It flips digital tradition on its head by approaching marketing as a profit center instead of as a cost center.
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We understand applying promotional effort in a random haphazardly fashion may not produce the results you desire. For that reason we develop a custom marketing strategy for your business that addresses the strengths and weakness of your competitors. We focus on growing your market share with a goal of eventually dominating your industry niche.
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Profit-driven marketing means moving from a cost center mind-set to a profit center, extracting as much profit as possible out of your marketing spend. This approach ignores traditional efficiency metrics and chases dollars to win more customers.
Shifting to a profit-driven mind-set requires a willingness to approach familiar problems in new ways, measuring, bidding, and budgeting like a profit-driven marketer.
If you overvalue your marketing investment you can waste money. If you undervalue your investment you relinquish profit to your competitors. As successful profit-driven marketers we have a healthy obsession with measuring the full value of your digital investments.
The benefits of better measurement go beyond just counting profits. Determining the precise value of your various customers allows for smarter bidding, which leads to more customers and more profits. It's now possible to measure the precise value of specific actions along the purchase path and how each impacts the total profit of your campaigns. These sharper insights lead to more profit.
If your goal is to maximize profit your bidding strategy should not be tied to cost per acquisition (CPA). Focusing on a rigid CPA goal can limit the amount of profit you bring in, measuring efficiency fails to account for increased profits from the total volume of transactions.
Bidding for profit means avoiding narrowly defined targets in favor of better business outcomes. Which sometimes means sacrificing unit margins when you can make up for it with extra conversions. A slightly higher CPA might land your ad in the top spot on a search result page and bring in way more sales volume than the lower priced CPA target. Bidding for profit brings you more profit.
Profit driven marketers match their ad spend to fluctuating demand and search volume. As you see increased volume from spikes in demand or higher ad positions your investment needs increase as well. Capturing demand means reaching every potential customer at the moment they are searching. If your budget is capped your brand is almost certainly missing out on opportunities to win customers. Optimized and flexible ad spend budgets prevents you from losing customers to your competitors during peak demand periods.
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