Why you shouldn’t use CLTV/CAC

Long-Term Business Sustainability Depends on the Right Measures

A metric commonly used to measure the performance of high-growth businesses is Customer Lifetime Value over Customer Acquisition Cost, or more simply CLTV/CAC. It is a much better metric to provide an objective to marketing teams than many others we have seen in the past, but it has also some tremendous flaws associated with it, and if not used correctly and in the right context, it can jeopardize the business using it.

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The Advertising value-exchange

When talking about the advertising value-exchange, people often think about the commercial relationship between the advertisers, publishers, vendors, and the many players in the marketing and media space. But what often gets overlooked in this equation is the most critical player of all: the consumer.

The most significant exchange in the advertising world happens between the advertiser that promotes an ad and the user that consumes that content.The most significant exchange in the advertising world happens between the advertiser that promotes an ad and the user that consumes that content. I’ve already written about ways to get the right message, in front of the right consumers, at the right time, but in this post, I want to discuss the reason why the consumer should pay attention to the message in the first place.

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Surviving Innovation

Throughout my professional career, innovation has always been the focus of the environment around me. Although it can often be an abused term, this proximity to groups aspiring to be innovative taught me a lot about this elusive concept. Recently, I started reflecting on some commonalities that I encountered when dealing with innovative companies, products, and teams, and I thought it could be interesting sharing them in a post.

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How to plan effective digital marketing campaigns

With the constant proliferation of new media channels and technologies, content consumption patterns have radically changed. Each channel offers a different interaction model with the users, and as a result, we live in a (media) world where a given metric takes a different meaning depending on the publisher. Let’s take for example video views: Facebook counts a view when at least one pixel is visible for 3 seconds (without sound), YouTube after 30 seconds of play time, Snapchat 1 second, and many publishers still could count a view when a video is playing below the fold. Continue reading

Don’t call it Performance Marketing

“Performance marketing” vs. “Brand marketing”

There is this weird distinction in the advertising industry between “performance marketing” and “brand marketing”, where the former usually refers to the highly-trackable, data-driven spend, where the other is awareness-creation, emotions-driving, hard-to-measure-impact kind of spend: the most obvious example of the two are SEM and TV advertising. Continue reading