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PPC Live UK #8 | 26th October 2023

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Top Tips:

  • Quality of your first party data is crucial

  • Determining how much you are willing to invest in acquiring a customer is a critical function.

  • By understanding CAC and LTV in conjunction, you can determine how much you can afford to spend on acquiring a new customer

  • CAC and LTV help you assess the long-term profitability of your customer acquisition efforts.

  • By monitoring LTV alongside CAC, you can identify early signs of customer churn.

Top Tips:

  • 25% of of digital spend is wasted on ineffective digital tactics alone

  • Focusing only on ROAS doesn’t take into account key trading dependencies such as returns, margins

  • Calculating LTV-based ROAS - which takes into account both your ad spend and your customer LTV - allows you to get a full picture of your marketing efforts

  • ROAS is great for short-term performance analysis. But to really understand the long-term value of your marketing efforts, you need to look beyond ROAS.

  • Ensure you have considered other key trading dependencies such as margin, returns etc

Top tips:

  • 2 out of 3 of online product searches start on retailer sites

  • Generally speaking, retail media is advertising within retailer sites and apps – usually by brands that directly sell products with retailers, though this is not always the case

  • Think of sponsored product ads as a way of amplifying your organic retailer listings “eye level / buy level”

  • Breaking campaign out by retailer distribution, product collection & SKU will help maximize SOV across top performers and improve conversion volume.

Top tips:

  • Remarket to the appropriate Asset Group and same message/journey (PMax)

  • Run scripts regularly (think Search Query report) and manage negatives

  • Google Ads have given back control through asset group level reporting brand segregation

PPC Live UK #8


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