09 Apr How much should I spend?
One question that will lead to the next from me: how much do you wish to make?
The formula is pretty straight forward. How much does a new customer brings you in profit divided by you are spending to get a new customer. If the equation is more than 1, you drive your money all the way.
But if it is less than one, means that you’re losing money at each transaction, then you need to judge. Is the lifetime value worth investing in? Is the exposure gained among non-transactional prospects going to bring you authority, awareness, goodwill, future business opportunities?
Advertising is to create awareness first, foster consideration to purchase. It is a series of action, make sure your ads are designed for the right action for the right audience at the right time.