Profit-Driven Advertising: Can It Empower Your Marketing Team?

Does your marketing team keep track of the true cost of digital advertising and the revenue it generates? In today’s world of advanced analytics and multi-channel tracking, there is no reason not to use profit instead of cost as a real guide for your online advertising.

Historically, CEOs have considered advertising an expense, not a revenue generator. However, as marketing teams focus more on the performance of the direct response campaign and the measurable results of the program, they also have the opportunity to opt for profitable advertising and move away from the traditional and economical model.

What are for-profit ads?

Advertising means investing in retaining rare recurring buyers and acquiring high lifetime value (LTV) users, rather than acquiring new customers for the lowest price. These tactics generate more long-term revenue for companies and reduce the risk of losing valuable leads to the competition.

Why consider a profitable advertising strategy?

Looking at marketing as a cost generator, not a profit generator, produces two very different results. This is what ROI looks like when you optimize your advertising spend for total profit, rather than predetermined cost-per-acquisition (CPA).

Is profit-based advertising right for you?

Moving to profitable advertising is a big step for marketing teams. If you are unsure whether you want to switch to this strategy, ask:

  • Are current KPIs hampering my team’s ability to maximize profits?
  • Does my team have the technology to identify and optimize the total revenue generated by digital advertising? If not, is there room in the budget to buy the necessary tools?
  • Does executive leadership believe in the value of data-based decision-making?

Did you answer yes to any of these questions? So it’s probably worth looking for profitable ads for your business.

How to Get Started With Profit-Driven Advertising

Facing a profitable action plan involves several main steps:

Define total profit as a KPI to measure the success of the marketing team

Campaign optimization based on the most important results for your business (how to extend the life of your customers)

Offer your marketing team flexible quotes so they can take advantage of opportunities with all profitable customers and prospects

Buy ad automation software that makes it easy to track real-time marketing costs and profit growth that adds lifetime value

Establish a financial accountability process so you can be sure that your profitable advertising efforts are paying off