The Difficulty of Accepting A New Reality In a world driven by data and performance metrics, understanding the incremental impact of media investments such as advertising on platforms like Facebook, is essential for businesses seeking growth and efficiency. The conversation about the real cost of customer acquisition (CPA) and the scalability of media spends is not just theoretical but rooted in the daily challenges faced by marketers. The cost to acquire a customer is not just a number; it's a dynamic metric that encapsulates the effectiveness of marketing strategies. Determining a CPA that reflects true incremental value is critical. For example, a business might identify a sub-$65 incremental CPA for customer acquisitions on Facebook, which may seem like a victory. However, the deeper question is how scalable this figure is. Can the business increase spending by 30% and still maintain a CPA under $100? This is where the conversation turns from simple number-crunching to strategic planning. Scaling Media Spend: A Delicate Dance Scaling media spend is akin to a delicate dance where one must balance the budget with potential diminishing returns. The concept is straightforward: if the CPA is under a certain threshold, it's time to scale. But how much? Can you scale by 50%? Or should it be 70%? The intricacies of these decisions are profound because they can fundamentally alter the outcome of your marketing activities. Marketers must consider if adding a new test cell to gauge the impact of increased Facebook spending could provide valuable insights. It's a strategic move to understand not just the current value of an investment but also its future potential. The "Oh, Sh*t" Moment in Marketing Every marketer knows the "oh, sh*t" moment—it's when the unexpected arises, and you must question the sustainability of your current growth trajectory. Is the performance level you believe you are at actually where you stand? This juncture is pivotal and having a trusted advisor who can present a clear representation of the numbers is invaluable. It's about peeling back the layers of data to reveal the true state of business performance. The role of a consultant in the marketing space is often to anticipate the unexpected. One might enter a room with the intention of discussing scaling strategies for a revenue target, only to find that the conversation quickly pivots to evaluating the fundamental worth of current spending. This is a common scenario, one that speaks to the dynamic nature of marketing consultancy. It's not just about having the answers but also about asking the right questions and being prepared to switch gears when necessary. The transition from making assumptions to creating robust test designs is where the consultancy skill set truly shines. Drawing on experiences from prior engagements, consultants learn to craft clear outlines of the objectives and testing matrices. This meticulous approach helps clients visualize the pathway from data to actionable insights. Crafting these detailed plans is not just about delivering a presentation; it's about building a muscle—a muscle that gets stronger with each challenge and each solution provided. Building a Consulting Muscle In essence, becoming proficient in this area of marketing is about developing a muscle that strengthens over time. It's about continuous learning, adapting, and preparing for the unforeseen. It requires a deep understanding of both the granular details of test design and the broader strokes of strategic planning. For businesses looking to navigate the complex landscape of media investment and for marketers aiming to hone their consulting skills, the conversation is ongoing. It's a rich blend of analytics, strategy, and adaptability—a trifecta that is essential for thriving in today's ever-evolving market. The world of marketing is fraught with challenges, but with the right tools, expertise, and mindset, it is possible to turn these challenges into opportunities for growth and learning. Whether it's determining CPA or scaling investments, the ultimate goal remains clear: to understand and harness the incremental impact of media for sustainable business success.

In the ever-evolving world of digital marketing, businesses continuously seek efficient strategies to outperform their competition. One effective approach to achieve this involves a three-step process: Apply, Compare, and Optimize. This method offers a comprehensive way to enhance marketing performance using advanced attribution metrics. Step 1: Apply - Embracing Advanced attribution Metrics The first step in this transformative journey is to apply advanced metrics for more precise marketing analysis. Traditional last-touch metrics, while useful, often do not provide the complete picture of customer interactions. By employing advanced attribution Cost Per Acquisition (CPA) or Return on Ad Spend (ROAS), marketers can gain a more nuanced understanding of their campaigns' effectiveness. These metrics consider multiple touchpoints in a customer's journey, offering a more holistic view of their interaction with marketing tactics.Applying these advanced metrics requires a bit of media math. The idea is to take various multipliers and apply them to understand the advanced attribution CPA or ROAS. This mathematical approach allows for a deeper comprehension of how each marketing channel contributes to the overall success of the campaign. Step 2: Compare and Assess Against Goals Once these advanced metrics are in place, the next step is to compare these new results against set goals. This comparative analysis is crucial in determining the success of different tactics. If a campaign is outperforming the goals, it might be time to scale up the funding. Conversely, if a tactic is underperforming, reducing the budget or reevaluating the approach may be necessary.Comparing advanced Attribution results to goals enables marketers to make informed decisions about budget allocation. This process is similar to assessing last-touch metrics but provides a more comprehensive insight due to the advanced nature of the attribution models used. Step 3: Optimize - Fine-Tuning for Maximum Efficiency The final step is perhaps the most critical - optimization. This phase involves two key aspects: macro and micro optimization.Macro optimization focuses on the broader aspect of budget allocation across various platforms. It’s about understanding where to increase investment and where to cut back to maximize returns. This might involve reallocating budgets from underperforming channels to those delivering better results.Even if a tactic is meeting its goals, there’s always room for improvement. Micro optimization delves into the finer details of each tactic, identifying areas that can be further enhanced to boost performance. This could mean tweaking ad copy, adjusting target demographics, or experimenting with different content formats. The Role of External Guidance Companies often rely on external agencies or consultants for macro optimization recommendations, such as where to allocate or remove budget. However, the micro optimization often remains an area less explored by these external entities. Here, in-house teams can play a significant role. By understanding the nuances of micro optimization, they can work closely with agencies to ensure that every aspect of a campaign is fine-tuned for peak performance.The journey doesn't end with optimization. The digital marketing landscape is dynamic, and continuous learning and adaptation are key. Marketers should always be on the lookout for new tactics, technologies, and strategies to stay ahead in the game.By adopting a structured approach of applying, comparing, and optimizing marketing strategies, businesses can significantly enhance their digital marketing efforts. This methodology not only improves the efficiency of current campaigns but also opens up doors for future investment and growth. Embracing both macro and micro optimization ensures that every dollar spent is working towards achieving the best possible results. Ultimately, this approach is about being proactive, informed, and adaptable in the fast-paced world of digital marketing.

In digital marketing, data is king. And with multi-touch Attribution (MTA), marketers have a powerful tool at their disposal to make informed decisions and optimize their campaigns. In this three-step guide, we will explore the nuances of advanced Attribution metrics and how they can revolutionize your approach to digital marketing. Step 1: Implementing Advanced Attribution Metrics Creating a comprehensive dashboard is the first step in harnessing the potential of advanced attribution metrics. Your dashboard should be capable of consolidating data from various platforms, including Facebook, Google Ads, and any other platforms heavily represented in your marketing mix.  This dashboard will provide you with insights into your ad spend, total orders, and total revenue, allowing you a clear overview of your marketing performance. To take full advantage of advanced attribution metrics, you'll need to introduce some additional metrics to your dashboard. These new metrics will mirror the ones you're using for last-touch attribution, including advanced attributed orders, advanced attributed revenue, and advanced attributed ROAS (Return on Ad Spend) or CPA (Cost Per Acquisition). These metrics will paint a more complete picture of your campaign's effectiveness. As an example, consider a hypothetical Facebook prospecting campaign. In this scenario, you've achieved a self-reported ROAS of 6.2. However, this metric is based on Facebook's view of your campaign's performance, limited to its own ecosystem. It doesn't account for cross-channel interactions or customer behavior beyond Facebook. This is where advanced attribution comes into play. To calculate advanced attribution ROAS, you'll apply a multiplier. If your self-reported ROAS from Facebook is 6.2 and your multiplier is 72%, you'll get a new ROAS of 4.5. This revised metric offers a more accurate reflection of your campaign's actual performance across various touchpoints. Step 2: Comparing and Decision-Making with Advanced Attribution Metrics The next step is to compare your newly calculated advanced attribution metrics to your predefined goals. Setting these goals can be a complex process and may vary from brand to brand. However, an ROAS of $1.50 is generally considered the break-even point in many industries, while ROAS values between $2 and $3 are typically profitable. In our example, the brand had initially set a goal ROAS of 3.5 based on last-touch metrics. However, advanced attribution metrics led them to adjust their goals, providing a more accurate and ambitious target. This flexibility in goal-setting opens doors for more accurate budget allocation, ensuring that the brand invests where it truly matters. By comparing advanced attribution ROAS to the updated goal ROAS, marketers can make more informed decisions. If the results align with or surpass the goal, there may be an opportunity to scale up the campaign. If the results fall short, optimization or budget reallocation may be in order. For non-brand search campaigns, the introduction of advanced attribution can have a profound impact. While last-touch metrics might suggest budget reduction, advanced attribution might reveal untapped potential, encouraging brands to maintain or even expand their efforts. Step 3: Dive into the Nitty-Gritty of Optimization Once you've set the stage with your advanced attribution metrics and made data-informed decisions, it's time for the nitty-gritty of optimization. Micro and macro optimization both will come into play. Micro Optimization: Even if your campaign is performing close to your goal, there's always room for improvement. Micro optimization involves fine-tuning your tactics at a granular level to achieve even better results. Don't settle for meeting your goals; strive to surpass them and continue optimizing. Macro Optimization: The larger scale of macro optimization entails reallocating budgets between platforms and channels. Measurement solution providers and agencies can offer guidance here. They might suggest moving a certain amount from one channel to another or making strategic changes based on your advanced attribution metrics. Embracing advanced attribution metrics revolutionizes the way you approach digital marketing. It offers a more comprehensive view of your campaign's performance, allows for dynamic goal-setting, and enables you to make data-informed decisions. By diving deeper into optimization, you can unlock the full potential of your digital marketing efforts and stay ahead in the competitive landscape. Learn Next Step : When You Have Attribution multipliers: what’s next?