I need some help understanding what’s going on with one of my clients. I’ve been trying to get them to raise their ad budget ever since I learned that they’ve been getting a great return on it. They recently hired a business manager consultant which has been very diligently looking at our conversion data for our ad campaign that we are running for them, and tracks which conversions are turning into actual customers (or patients, in their business).

This consultant told me that they made over $50,000 in new business with these campaigns and they only spent $3,600 an digital ads. They were incredibly happy about this (of course). That’s over 10x return on advertising spend but here’s the part I don’t understand… Instead of increasing their monthly spend on advertising they’re interested in going to different routes like more email marketing and direct mail marketing which we still do for them, but I just don’t understand. We live in a huge market and there’s so much untapped potential. Why wouldn’t they just up the spend that’s already giving him such a great return?

Btw, the consultant absolutely thinks they should be increasing their ad spend, but the end client is hung up on it. They are also small business. If you got these kinds of results, what would be a reason to keep you from doing more of what’s already working?

  • ChicagoDash@alien.topB
    link
    fedilink
    English
    arrow-up
    1
    ·
    10 months ago

    It might also depend on their margins. If the $50k of revenue isn’t likely to lead to repeat customers and they only have 10% margins, then that advertising chewed up 2/3rds of their profit.

    You did say they were “incredibly happy” so maybe it was profitable new revenue.