Spend Principles

The world of paid media is evolving constantly. Marketers need principles that are time-tested to operate across all types of business environments.

Through hundreds of millions of dollars spent on paid ads and a few scars to show, this is our attempt at the core principles of media mix optimization.

  • 1. Turn media spend into revenue

    The ultimate goal of any marketing effort is to generate revenue. It's crucial to focus on strategies and tactics that directly contribute to the bottom line. By measuring the impact of media spend on revenue generation and optimizing your media mix accordingly, we can ensure that every dollar invested in advertising delivers tangible returns.

  • 2. Spend where your customer is

    Understanding your target audience and their consumer behavior is essential. We emphasize the importance of allocating resources to the platforms and channels where your customers are most active and receptive. By targeting the right channels, We maximize the chances of reaching and engaging the intended audience, driving higher conversion rates and revenue growth.

  • 3. Diversify spend or die

    Relying too heavily on a single marketing channel can kill your business. We emphasize the importance of diversifying media spend across multiple platforms and channels. By spreading investments, we minimize the risk associated with over-reliance on a single channel and take advantage of the unique benefits and reach offered by different platforms, ensuring broader exposure and a more balanced customer acquisition strategy.

  • 4. Optimize the largest spend first

    We prioritize optimizing the channels or campaigns that contribute the most significant share of media spend. By focusing on high-investment areas first, we can have a substantial impact on overall performance and revenue generation. This principle ensures that resources are directed toward the most influential elements of the media mix, maximizing efficiency and driving results.

  • 5. Spend on revenue flywheels

    We recognize the power of investing in long-term strategies that create self-sustaining growth. By focusing on initiatives that have the potential to generate ongoing momentum, such as building a high-quality customer base, implementing referral programs, or investing in content marketing, we can generate exponential revenue growth over time, creating a flywheel effect that multiplies the impact of media spend.

  • 6. Fight cannibalization with incrementality

    We understand the importance of measuring the incremental impact of media spend. By distinguishing between the customers or revenue that would have been generated regardless of advertising and the additional impact directly attributed to media spend, we avoid cannibalization. This principle ensures that marketing efforts are genuinely driving incremental revenue and provides insights to optimize media allocation effectively.

  • 7. Systemize experiments to drive growth

    We promote a structured approach to media mix experimentation. By establishing systematic processes for testing and optimization, we can continuously refine strategies, discover new opportunities, and drive growth. This principle encourages a culture of experimentation, where data-driven insights and learnings inform future testing, enabling us to maximize revenue generation and respond to ongoing market changes.

  • 8. Make sustainability the north star

    Every brand goes through peaks and valleys during the course of its lifetime. Sustainable growth means responding to market conditions and optimizing toward survival. If marketing spend is not profitable it must be immediately cut. By focusing on fundamental business metrics and continuously cutting inefficient spend, we ensure your brand can survive downturns and make it to the other side.