Relying solely on Return on Ad Spend (ROAS) is misleading because it includes sales that would have happened anyway. By pairing ROAS with the percentage of 'new-to-brand' customers, you get a stronger signal of whether your ads are actually acquiring new, incremental revenue.
For a rapidly scaling brand, optimizing for small, single-digit percentage gains is a waste of time. Prioritize tests that have the potential for massive, double-digit improvements. If a test doesn't show a clear, significant winner quickly, abandon it and move to the next big idea.
Focusing only on conversion and customer acquisition cost (CAC) from day one will lead to failure. This strategy exhausts the small 'golden cohort' of easy converts. Without parallel investment in top-of-funnel awareness, you'll hit a scaling wall when your CAC inevitably skyrockets.
Don't just advertise 'where your customers are.' Choose platforms based on your specific funnel objective. For awareness, use channels that allow for high frequency control (like CTV or podcasts), not social media. For consideration and conversion, use platforms optimized for click-outs, like Meta or retail media.
Click-through rate (CTR) and cost-per-click (CPC) are misleading because users often click an ad but never land on the product page due to interruptions. Measuring the actual cost to deliver a product page view (CPPV) provides a more accurate signal of mid-funnel ad efficiency.
Marketers must make a strategic trade-off. Relinquish control by selling on large platforms like Amazon to achieve massive scale. Simultaneously, take firm control of media buying; don't let platform AI dictate creative choices, as it lacks your brand's full-funnel context and strategy.
Resist the urge to pack every message into a single ad. Top-of-funnel creative has one job: make the brand name memorable. Mid-funnel creative's job is to connect the brand to its benefits. Bottom-funnel creative addresses specific objections or drives repeat purchases.