#meta-ads

Thread

Anders Reckendorff November 12, 2024 at 09:57 AM

@Mitesh Desai what is your split on spend on the channels?

We mainly look at blended CAC, not channel specific CPA, as customers have so many touch-points and we do subscription - and we are quite higher than the 80 eur you mention

Mitesh Desai November 12, 2024 at 10:26 AM

Wow ok thanks. I guess in our case we work on quite low margin and there's currently no subscriptions so it's not realistic for us to acquire customers anywhere at such a high cost. We stopped meta ads a while back but we spend around £30k a month on google ads now (Pmax brought out CAC down a lot)...we spent a decent chunk of money on meta ads to realise it didn't suit us

Anders Reckendorff November 12, 2024 at 10:32 AM

Okay, got it. As a retailer, I can imagine margins are quite different. We spend +600k eur across meta / google monthly, so that is also why we have a higher cac.

The “issue” with google ads is that it is not really scalable in the same way as meta, as it is search volume dependent.

Do you know your LTV? Then 80 eur might not be that much, if you look at 1-year or 2-yesr customer value. I would be geniunly surprised if you could acquire customers for much less than that on meta, so it is a long term bet always.

Ps. we usually provide our retailers with pretty good margins - happy to connect you to our Retail sales guy 😉