Regardless if you are running ads to sell shoes or submarines, you are facing one of the following challenges:
- How do I know if my customer acquisition cost is low, high, or average?
- How should I update my sales funnel to reduce acquisition costs?
- What’s the optimal way to distribute my budget across each channel?
- What are the dimensions (age, location, interests) that are affecting my acquisition costs the most?
- How can I increase volume while keeping or reducing my acquisition cost?
- What’s the users’ cohort with the highest LTV?
- What’s the best way to define a users’ cohort?
- What is the most relevant metric to measure my creative engagement?
- What combinations of creative, format, channel should I try?
- How can I use performance data for market research?
- What predictions are worth to pursue?
- What’s the best attribution model?
The answers to the above questions are either industry-specific or specific to your audience/message/brand. You can google about them and get some data, but for most of them, you need to run a campaign, experiment and come up with insights.
Not all the challenges are relevant to your campaign. If you are planning a campaign, it might be useful to find the average CPA in your industry. If you are way past that and have sophisticated attribution and LTV models, then your optimization challenges will be around predictions.
Pick one challenge, even if you are not sure if it is the right one. Your answers might change over time, but at least you will find some insights that you can work with right now.