(In response to some DM’s and following up on Ad Frequency/Exhaustion video)
💸 In the end, revenue and customer retainment is all that matters. I completely agree with that.
However, just because you are converting doesn’t mean that ad exhaustion may not be hurting your cost efficiency.
If you’ve created an epic ad that gets people to click and convert but after a few months you started seeing your CPC go up (even if you’re still converting) then you may not be using your ad spend as efficiently as possible.
🤔 Think about it, you may be hitting your right target and some of them may be converting, but if your frequency is high you’re going to start tying your audience. This will bring your engagement rate down and CPC up.
If your ad creative is that great then you should keep it, but try further segmenting your audience or even targeting new people. This will help bring that engagement rate back up and your CPC back down, therefore making you more cost efficient. More cost efficient means more eyes and more potential for new customers.
Below is a transcript of the video above created by Seb’s Robot buddy, Zekton. He tends to make mistakes so please forgive him if you find errors or some funky sounding sentences. For the real deal, watch the video above! I hope you were able to find value and please don’t hesitate to contact me for further questions or insights on SEO or any aspect of digital marketing!
Hey, what’s up guys earlier. I did a video about ad frequency and ad exhaustion, and I just wanted to clear some things up because I got hit up on the DMS with several good questions and I thought they were, they were worthy of bringing up. Um, some people ask me, does it matter how much exhaust from your audience and how much frequency you have on an ad? It really comes down to conversions. And I mean, the quick and short answer is no, excuse me. If you’re getting great conversions, then, then that’s awesome. But let’s think about this. If you’ve got an awesome ad that is converting well, right? And after you are frequency is really high and you’re exhausting that ad to, to that audience, your cost per click starts to become higher and higher and higher. And even though you’re converting in the end, your cost per acquisition, that cost per conversion is essentially going to go up.
It’s going to get higher, right? It’s going to get more expensive, right? So if the ad frequency is getting too high and you’re exhausting your audience, which is therefore causing your cost per click to go up and your cost per acquisition to go up, that’s when you should really consider that ad exhaustion, beat an actual factor that is effecting your cost efficiency, right? So what to do for their segment, your audience, your ad creative is awesome. It’s converting well. Awesome. Just don’t serve it to the same people. 10 plus times. Now further segment your audience, create new targets. And now keep trying that testing that, that creative to other audiences, which we’ll now break that cost per click further down. Hopefully it will still convert as high as the other one, but if your CPC is lower, therefore your cost per acquisition is lower. If your conversion rate is remaining the same. So some of that stuff may be a little bit over the head for some people, but if you’re in this all day every day, you totally understand that. And just something to keep in mind in terms of ad frequency and ad exhaustion, that’s it for now guys. Hope that clear that up until next time. Peace.