Marketing and performance

Paid media measured by contribution margin

ROAS shows how much revenue comes back for every unit of media spend. It does not show how much of that revenue is left after paying for the product, shipping, payments, returns and the media itself.

We plan and run paid media on the platforms where the buyers are, improve the conversion of the pages that traffic lands on, and manage both against contribution margin, so that growth in sales also shows up in profit.

CM1, CM2 and CM3

CM1

Product margin

Net revenue minus the cost of the product. It shows whether the product itself makes money.

CM2

Order margin

CM1 minus the variable costs of each order: shipping, payment fees, logistics and returns. It shows whether each order makes money.

CM3

Margin after marketing

CM2 minus marketing and acquisition costs. It shows whether growth makes money, and it is the number we manage paid media against.

How we run paid media

Targets set on CM3

Bids and budgets follow the margin each product and channel can afford.

Margin by product

Products with low CM2 get less spend, or a different role in the account.

New and returning customers

The cost of acquiring a new customer is read separately from repeat purchases, because they pay back at different speeds.

Reporting with the full cost

Revenue, CM1, CM2 and CM3 by channel, campaign and product, with the decisions of each period next to the numbers.

Connected data

Ad platforms, store, ERP and shipping costs connected, so margin is read from the source data.

Channels and creative

Every channel where the buyers are, with creative tested against margin as well as clicks.

Metrics for each stage of the funnel

Each stage of the funnel has a different job, so each one is read against its own metrics. Upper-funnel campaigns are not judged on last-click sales, and none of them is judged without the margin at the end.

Result metrics
Control metrics
Awareness
Result metricsImpressions, reach, video views
Control metricsCPM, cost per 1,000 reached, frequency
Consideration
Result metricsClicks, sessions, engaged visits
Control metricsCPC, CTR, session duration, bounce rate
Conversion
Result metricsPurchases, leads, booked visits
Control metricsCPA, CPL, conversion rate, average order value
Margin
Result metricsRevenue, CM1, CM2, CM3
Control metricsCM3 per order, customer acquisition cost, payback period

Conversion rate optimization

Media brings people to the site. What happens there decides how much of that spend turns into sales. A better conversion rate lowers the cost of each sale on every channel at once, so CRO is part of the work, not a separate project.

Landing pages

Pages built for each campaign and audience, with one message and one action, instead of sending all traffic to the homepage.

Product pages

Photos, description, reviews, delivery information and price, shown the way buyers need them to decide.

Cart and checkout

Fewer steps, clear shipping costs and the payment methods people expect, so fewer carts are abandoned.

Offer and pricing

Bundles, free shipping thresholds and promotions, tested against CM2 and not only against conversion rate.

Speed and mobile

Paid traffic arrives mostly on mobile, and a slow page loses it before anything is read.

Tracking and measurement

Conversions, revenue and costs measured correctly in the ad platforms and in analytics, so that optimization works on real data.

How we test and scale

Paid media improves through short test cycles that combine strategy, data and execution. Every euro invested has to produce learning as well as results.

We scale the variations that prove themselves and switch off the ones that don't, so the budget moves towards what works.

What we test
AudiencesCreativeCopyLanding pagesOffersBidding and budgets

Hypotheses

We turn the data into test opportunities and define the audience, channel, message and format for each one.

Launch

Approved concepts go live across the funnel and across channels.

Data collection

Results are monitored before, during and after each test, until the learning is statistically reliable.

Analysis

We validate the results, look for patterns and turn them into recommendations.

Iterate and scale

Winning variations get more budget and new versions, and weak ones are switched off.

What was learned feeds the next round of hypotheses.

From plan to live campaigns

A defined process reduces errors, speeds up implementation and keeps what goes live consistent with the strategy.

Strategy and media plan

Objectives, budget by channel and the media plan, agreed with you before anything is produced.

Creative and approval

Assets produced by our team, checked internally, then previewed and approved by you.

Setup and launch

Campaigns configured, tracking checked and campaigns activated.

Optimization and reporting

Continuous optimization, with dashboards that join marketing, sales and finance data, and regular reviews of insights and next steps.

One team manages the account from strategy to reporting.

How it starts

We start with access to the ad accounts and the store, and with the product, shipping and payment costs.

With that we build the first CM3 view by channel and product. It shows where the budget is buying margin and where it is only buying revenue, and it becomes the baseline for the objectives we agree with you.

Start with the diagnosis
A free first conversation about one concrete challenge, ending with a written summary of what we found. No commitment beyond that conversation.
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