John:
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How everyone measures clients wise.
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CPA ROAS like what am I getting cost
per conversion, blah, blah, blah.
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But there's the return on ad spend.
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these are the metrics that
we should be counting.
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Typically, this is how
everyone measures client wise.
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no CPA ROAS, like what am I getting
cost per conversion buble one,
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but there's a return on ad spend.
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these are the metrics that
we should be counting.
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This is something that all of these
will have a correlation to each other.
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They all work together.
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obviously CPC is going to be
different than ECPNV, which is
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the effective cost per new visit.
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that's how scalable a campaign is.
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there's more here.
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00:00:56
Obviously, there's frequency, which is
good, but that's an app platform metrics.
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Most of these that you'll see here on the
screen, CPCs in app CPN rows are an app.
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Everything else is not really in
app, like in metal or in Google,
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in email clients, whatever it is.
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so by scaling as example, if
you're a CPNB is too high, Okay.
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It's really difficult to scale your CPC
could be low, but depending upon campaign
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type by channel, if your is too high,
that's what actually is going to be.
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It's going to be scaling because
as you add in dollars, your is
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what you're adding dollars to.
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So that's when you said, the
CPC is maybe not what they were.
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They want it as well.
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It could be or it could not be.
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it all depends on what the difference
between the e ccp NV and the CPC is.
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CPC is indicative of just
a click from a network.
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E ccp, NV is how many are new.
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A lot of times, those are
way different metrics.
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so that's one of the thing that I'm
gonna be, giving that speech about.
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but that's also something that to
give you, I'll just do, this last
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seven days, for example, on Facebook,
I think, like the 3 range, like 2.
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90 3 range, but it actually is
costing him 5 for every new visit.
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So when you're looking at the
difference between Facebook and
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Amazon, we'll discuss this part later.
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But when they started to pull
back, they're like, oh, we'll
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have an economy of scale.
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we'll pull back the spend
here and we'll do better.
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And it didn't.
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And that's because they started
losing more new visits that returning.
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So scaling up or scaling down is
having the same effect because
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they're not actually controlling the
difference between CPC and ECP and me.
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So when they pull back, everything hurts.
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So that's, what's interesting.
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All these are correlated.
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and that's why I'm saying it's so unique.
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It's really, it's the customer journey
and that's the real unique part is
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you never want to pull back more
new visits than returning visits.
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Then your economy is
scale moving up or down.
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So this is a really complicated scenario.
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Cause just massive and has
millions of users like a month, but
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that's just like the thing where.
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We really have to go one by one to make
sure that if we're going to scale up,
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we don't use the current performance in
app because that is a snapshot in time.
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That's one, maybe fifth
of the user journey.
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so that's how we want to make sure we
think about this traffic is if it's
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scalable, why or why isn't it scalable?
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The other part, actually, what's
funny is in that same presentation,
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this part here, This is just
something that's good for everyone.
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The glass ceiling of diminishing
profitable returns misinterpreted by ROAS.
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The red line is where you hit
a point of diminishing returns.
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And so Google, people
usually overspend on Google.
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We overspend on Google,
because we're a Google agency.
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Typically we have been, and that's
where it's yeah, but you guys
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are the ones that should go where
maybe that's not necessarily true.
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The diminishing profitable return
at the point of diminishing returns.
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Cause Anything that over attributes, you
can scale that thing right up to the moon.
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And it just always get a, show
you a good profit return, but
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it's not affected by the backend.
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Meta is typically under utilized
because it always has like a 1.
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5 return because it's always
started the customer journey.
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And then Google's always overspent
because it's always like the last
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30 percent of the customer journey
that we get attribute, which means
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that it's always going to look good.
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So this one's understanding this
one's overspending and then.
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We are always person on
the other end of the call.
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That's Hey, solutions, eight.
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why don't you spend more?
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You're doing better than meta
and you gotta save my ship here.
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But that's because we haven't
identified the glass ceiling.
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So when we're scaling a client, my
always thing is, what are they doing?
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What channels are they running?
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Apple levels?
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What is the customer journey
that they're going through?
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Are we starting a lot of the journey on
meta that we're overspending on Google
87
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and overspending on Amazon because,
we don't control Amazon and people
88
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are just dumping in brand spend there
and it shows a 10 X return, but it's
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started by something else like YouTube.
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So these are always those kinds of
like points where we look at is when
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you're looking at omnichannel traffic,
we can scale, but should we scale?
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are we in that part
here in this, scenario?
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we're already here, we're
past point dimension returns.
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And Regina, you're asked, take it up here.
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It may not be a good idea.
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what other things are we doing?
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And are we under utilizing any
other channels at the time?
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or that's why I think that we're
thinking about a customer journey.
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We're really simple.
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We're in a war of attention with
everybody else for a product people want.
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Period.
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That's as simple as this really gets.
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That's why meta does so well.
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And it looks like it does poor
is when is the war of attention
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because they have a higher frequency
where Google gets like one click.
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so those are ways to think about it.
