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  • Writer's pictureTolga

The First Step To Business Success

(taken from @apemedialab X(twitter) post)


The first step to success is determining what success looks like for your business.


One of the first questions we ask our clients when we onboard them is;


"What result would make our efforts successful?" Is it a higher ROAS? or is it more sales?


Sometimes they respond like; "can't we have both?" well... yes and no. it depends on the current state of the business and finances.


Sometimes the business owner or marketing director doesn't even know how to answer that.


 

Here are a few questions that can help:


- Could you afford to increase your ad spend by at least 100% in the next 3 months?


- Could you handle double the orders you're currently getting?


- Could you afford to get half the ROAS you're currently getting?



Here's what your answers to these questions would indicate:


- If you can't afford to increase your ad spend, then you're not financially ready to scale.


- If you can't handle double the orders, you're not operationally ready to scale.


- If half the current ROAS would put the business in danger, then your ad efficiency is not there yet.


 

But why would this matter for the ads?


Primarily, it would matter for the ROAS tolerance.


If what your brand needs is volume, then you should be comfortable with relatively lower ROAS. Because 9 out 10 times, when we increase ad spend, ROAS will drop.


But that's okay because now you sell more products, and make more money.


If your brand needs efficiency, obviously we need a good ROAS.


You can do it in 2 ways that could also intersect;


First, you lower ad spend. You reduce the budget of low-performing campaigns, ad groups, audiences, and ad creatives. or completely kill campaigns that are more than 50% under the acceptable ROAS.


Second, you just make everything better, using the same budget. when we take over an ad account, there are usually very obvious (to us) things we can immediately implement and get better results for the buck.


Overall;


A goal gives direction to all the campaigns and the decisions will be taken along the way.


Without the goal, you wouldn't be completely lost but... wouldn't be going in the exact right direction either.


Having a goal will also help you make internal decisions that are aligned and make things more efficient.





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