Ecommerce Playbook: Numbers, Struggles & Growth cover image

How Much Should I Spend On Ads?

Ecommerce Playbook: Numbers, Struggles & Growth

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Ad Spend Against Total Revenue

The percentage of your ad spend aimed at new customer acquisition is going to be shrinking across the total of your business. Are ads generating the one purchase that most customers will ever make? And if that's the case, that needs to be profitable, you need to spend less on ads and more on returning customers. If it may be that, like, you're spending way too much on az, because you're spending too much on returning customers, that you're actually cannibalizing your own value th you should be creating. So what is healthy for your business? Whell it depends what stage of business you're in.

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