One of my earliest marketing mistake is cost control. Not controlling exactly how much should I spend, not aware of the KPI – probably aware but not taking action.

Either way, it is all about cost control.

There are two side of cost control and this are pretty much vary depending on the client agreement – some says ROAS, MER, Profit per day. However, to me, this is lagging indicator.

The tightest cost control that you can watch closely is your Cost Per Acquisition (CPA).

Therefore, you need to know your CPA and incorporate that information in your campaign planning. It is the most single question that you need to know – what is my CPA target?

Knowing CPA target

You can use Monocal – Primary Ads Analysis to determine your CPA. Please copy the original file and do the necessary edit.

Rules

1. CPA target is vary depends on SKU. Product A might have different CPA target compare to Product B
2. You need to RRP and COGS or Profit Margin
3. At minimum, CPA at Breakeven should be our target.
4. We can afford high CPA if we have LTV data

You need to fill up the 1st section – RRP, COGS (based on COGS %) and AOV

For simplicity sake, you can use AOV = RRP.

Target CPA

Target CPA is based on Profit % taking that we want. Lowest should be breakeven and at minimum, we should be aiming around 10-15% (Low Level)

Once you know your target CPA, then you can follow our MGF Decision Tree.

Conversion – Salespage

It is super important, before we do any tinkering on the campaign, or even before we start anything, the full account audit need to conducted.

Refer here on how to do audit. At this time of writing (21st August 2022), I haven’t write anything on the audit.

The first block of decision tree will start with how is our salespage CVR perform historically in particular on prospecting level? We should aim at minimum of 5% salespage CVR.

If salespage CVR is below 5% for prospecting level, work on salespage first.

How do you know if it’s ads not working or salespage is not working?

In certain cases, client already developed the salespage and at best, we need to understand what exactly is the salespage is all about. If the salespage talking about acne treatment, then the whole campaign must resonate with the salespage because that is the biggest lever.

If I fix the salespage already, which campaign should I test with?

Of course before knowing you need to fix the salespage, you already spent some money testing it. Use your best ads performance to test it. For example in this particular ad set with two types of creative – UGC and Product Focus. Both of them are not producing any purchase at the moment.

If I am going to fix the salespage and I’m done fixing the salespage, shall I run both ad set again or I need to pick one?

I’m going to test my salespage with UGC ad set because it produce the lowest outbound click cost and also the secondary metrics are OK.

If you decide to rerun again with both ad set, you might blow your budget. Alternatively, you can test 2 ad set but start will small budget like RM50/day for example.

However, preferably, I will run with single ad set to test the salespage.