Tactical & Practical Math That Makes Sense (& Dollars): Understanding The Economics Of E-commerce
Jul 25, 2024
Discover the common pitfalls e-commerce brands encounter when scaling their marketing efforts. Learn about the dangers of trying to maintain efficiency while ramping up and the negative impact of slashing ad budgets during tough times. Gain insights into mastering key marketing metrics to enhance profitability without cutting costs. This discussion unveils practical strategies to boost your bottom line and navigate the complex world of online advertising.
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Plan for Decreased Efficiency
- Plan for decreased marketing efficiency when scaling ad spend aggressively.
- This helps avoid overestimating profit and allows for proactive adjustments.
Cutting Spend Is Not a Strategy
- Cutting ad spend to improve efficiency is a short-sighted solution.
- It may temporarily boost metrics, but it hinders long-term growth and profitability.
Spend More When Performance Dips
- Increase ad spend even when performance dips, counterintuitive as it seems.
- This approach can maximize contribution margin and overall profitability.