#paid-media
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Wanted to share this cost calculator to help optimize towards short term LTV values with ads, really useful for setting targets.
How can you optimize for LTV with ads?
Offers
@Mark Fagan
Trying to understand this - you can possibly optimize for AOV with an offer - maybe,
maybe not.
However LTV is something that typically takes place after the first order otherwise it’s not really LTV - meaning you have to retarget these users and hope the second purchase CPA is low enough to be profitable.
Why not optimize for LTV via Email and Sms and save a ton of money on the process?
It’s a matter of definition but typically first orders that contain a sampler pack, tasting kit, product bundle type offer lead to larger 60-365D LTVs.
Even if you don’t retarget with email, sms or ads the person who was exposed to the most skus on first order via an offer will on average have a higher near term LTV than the person that bought one sku.
The assumption being the products are good.
There are also certain single skus for every business that for whatever reason net the highest retention rates, so optimizing for those on first order is usually a good idea given a first order profit.
Ah gotchya, would work for some bit not the majority of my clients - I can see where it might be applicable though.
Nice dashboard and useful for many different metrics even if you cannot optimize ads for LTV.
For sure, the dashboard can optimize for LTV by using the LTV efficiency metric instead of first order metric, by stretching out the purchase period from 1 day value to a 90 day value—thereby optimizing for 90D ltv vs first order.