))
The Rubber Band Effect of Cost Caps on Meta With Matej Draksler
Manage episode 455766448 series 3620408
Content provided by Lucian Armasu. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Lucian Armasu or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://ppacc.player.fm/legal.
Matej Draksler is the COO of AdsLux, a strategic growth partner empowering e-commerce brands to scale through holistic multichannel marketing. With over eight years of experience in digital marketing, he has managed millions in ad spend across platforms like Meta and TikTok, optimizing ads and CRO strategies to drive significant growth for health and beauty brands in the EU and US. Matej’s insights into advertising and conversion rate optimization have led numerous brands to substantial profitability and market prominence.
In this episode…Have you ever tightened your advertising budget only to find your costs per acquisition (CPA) increasing? It seems counterintuitive — shouldn't lower cost caps yield lower expenses? Learn how a seasoned growth marketer tackles the challenges of ad inefficiencies and diminishing returns.
Matej Draksler addresses the perplexing “rubber band effect” of cost caps within digital advertising. Matej reveals how tightening cost caps on platforms like Meta can ironically lead to higher Cost Per Acquisitions (CPAs). This effect often results from algorithms overly targeting existing customers, exhausting this audience without converting them effectively, resulting in wasted budgets. Matej provides a tactical approach to adjusting these cost caps until you find the optimal sweet spot rather than relying solely on profitability metrics. By employing a method that balances profitability and market reach, advertisers can maintain optimal CPAs without exhausting resources.
In this episode of The Winning Strategy podcast, Lucian Armasu chats with Matej Draksler, COO of AdsLux, about optimizing digital advertising strategies. Matej provides valuable insights into avoiding common pitfalls in ad spend management, delves into the intricacies of how digital algorithms function, and highlights the importance of flexibility in setting cost caps. Tune in for tips on identifying the optimal cost cap range and leveraging multichannel approaches to achieve significant growth.
19 episodes
Share
