The Readout – July 2023
nestcommerce.co
18
H2 STRATEGY
A long-term approach will reduce customer acquisition costs Despite recent reductions in Meta CPM, reduced engagement with online advertising since the pandemic years and a more unpredictable consumer environment means that many brands find it harder to meet their target acquisition costs. Meanwhile, brands desperate for a quick cash infusion are overindexing in retargeting and Search, and not doing the prospecting required for sustainable growth. If this sounds familiar, it isn’t too late to turn around your brand’s fate.
Blended account incremental CPA with/without 10% traffic activity
28%
CPA without 10% traffic activity
Lower CPA
CPA with 10% traffic activity
Blended account incremental ROAS with/without 10% traffic activity
There are tactics that will reduce your CAC. Investing in upperfunnel objectives in tanden with performance is key, while having the right measurement solutions in place will help you steer this investment.
19%
Higher ROAS
According to aggregated Nest data, investment in as little as 10% of traffic activity drives 28% lower incremental in-platform CPA and 19% higher incremental ROAS when compared against unexposed audiences. When it comes to brand, even a comparatively small investment will have a significant impact on CAC.
ROAS without 10% traffic activity
ROAS with 10% traffic activity
