top of page
  • Writer's pictureDan Spiner

Ad Campaign P&L

Updated: Jun 12, 2023

In the start-up world, typically funds are tight and calculating the ROI on ad spend is mandatory to use the limited funds most effectively. While it sounds like a tedious task, with today’s abundant data tracking, it is possible to know how much it's costing you to get people to land, convert, and provide revenue all while keeping track of churn. Do take the time to understand your ratios, why people leave after landing, and why some unsubscribe after signing up.

Your profit and loss is directly impacted by the results from advertising expenditures. If you find the formula that produces a positive impact to the bottom line after ad spend, you are in a good position to scale. Results do vary as you scale and over time so keep adjusting and trying new things.

To make your ad campaign successful, leverage your advertising spend and study the data.

Multiple channels are important. Each will have different results. By tracking those results, you’ll understand where to focus your efforts and funds. This might involve using online channels as well as offline channels. For example social media, search engine marketing, display advertising, and traditional media will help you to target certain audiences and increase awareness around your company or product. Your partners can also participate through coordination and amplification of common messages. It works wonders.

Analyze how much you’re spending on ads to get people to you as well as the conversion rates all the way to revenue.

The churn rate is an important aspect of ad campaign, as high churn rates in an ad campaign indicate that something is not working. Is it the product or service? Wrong target? Why are people leaving? Over time, refining your campaign through multiple trials and adjustments will produce the results you need in the long run.

Finding out what isn’t working is one of the stepping stones to finding out what will work. Keep going.

Build a financial model for your business, including your advertising initiatives, and populate it with actual data from your campaigns.

If you want to discuss your specifics, reach out!

6 views0 comments


bottom of page