The Unofficial Shopify Podcast

Why Your Creative Strategy Is Burning Cash

Dec 9, 2025
Nehal Kazim, Founder and CEO of Ad Pros, is a seasoned performance marketer with a knack for profitability-first acquisition strategies. In this discussion, Nehal dives into the chaos sparked by Meta's Andromeda update, highlighting the costly trend of overproducing creatives. He shares insights on tracking daily new-customer margins and matching creative output to budget, emphasizing smart acquisition strategies. Plus, he reveals why focusing on high-LTV customer cohorts can optimize profits and challenges businesses to align their actions with true customer acquisition goals.
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ADVICE

Track New-Customer Profitability Daily

  • Track new-customer profitability daily to know how many customers you can afford to acquire.
  • Use contribution margin (revenue minus COGS, delivery, fees, ads) to set acquisition caps and pacing.
INSIGHT

Build Acquisition From Retention

  • Acquisition strategy should be built from retention and lifetime gross profit, not day-one ROAS.
  • Work backward from high-LTV cohorts to tailor offers, messaging, and channels for valuable customers.
INSIGHT

Consolidation Can Improve Meta Learning

  • Meta's algorithm performs better with consolidated account structures because it needs high-quality, unified signals.
  • Consolidation can stabilize learning and support much larger daily spend in single campaigns.
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