Current competition, with saturation

mdsohanuzzaman5

If spend were irrelevant to performance, brands would only pay to advertise on their best-performing channels. In other words, they would accumulate every euro they have in their highest-performing channels. (And everyone's job would be a lot easier, right?) However, in reality, performance on a channel has a lot to do with how much you spend, but not how you plan to spend it. In fact, what happens is counterintuitive: often, when a channel's spend increases, efficiency metrics ( CAC , RoAS, etc.) quickly decrease.

This inverse relationship is the key to understanding PPC channel saturation . The point at which Cambodia WhatsApp Number Data a channel becomes saturated is the point at which it becomes inefficient to spend more money on that channel, when each additional euro spent generates less than a euro in profit. One way to think about this is in terms of marginal efficiency metrics, such as a channel's average cost per acquisition (CPA): how much it costs on average to acquire a customer . It is also useful to think of channels as having a marginal cost per acquisition, that is, the cost of that channel to attract an additional customer .




Thinking this way, we can say that a saturated channel has a marginal cost per acquisition equal to or greater than the profit obtained from each acquired customer. How does a channel become saturated? Channel saturation occurs because, as the price increases, purchased ads are shown to increasingly less relevant users. The chaos of communication means that every day we are immersed in a whirlwind of proposals, most of which are not significant. levels that exceed the public's attention span, with aggressive messages that are sometimes not very clear, increasingly demonstrates the loss of effectiveness for companies.