Increasing LTV
We’re now entering a “perfect storm” period in digital advertising.
Our growth programs are dealing with the following headwinds, all at once:
Inflation, which suppresses customer demand.
The world reopening, which alters customer behavior.
Algorithmic signal loss, which diminishes ad targeting quality, which results in higher CACs and sometimes lower LTVs.
Supply chain issues, which causes more “out of stock”, which decreases LTVs.
Peak social media and peak streaming, where we no longer benefit from an ever-growing pool of eyeballs and time spent consuming content (and our ads), which results in faster CPM growth.
Even in this perfect storm, the news is not all bad. There are still many ways to win.
Companies who prudently measure their success based on their full customer lifecycle continue to find ways to improve. Many businesses still growing quickly and sustainably through the storm and earning their CACs back on reasonable timelines.
At Bamboo, we’ve focused our advertising work in this way for years and we’ve been able to help our clients weather this storm quite successfully so far.
Our next service will be our first step beyond advertising, to help clients shift their lifecycle efforts (email, push, SMS) to focus similarly on improved payback periods and increased LTVs. We’re hiring a leader for that service now.
For those who are not measuring their success based on their full customer lifecycle:
There is no time like the present.