How to maintain profitability with increasingly challenging CAC

• Problem: Mature campaigns face the challenge of having to keep acquiring new subscribers as influencers raise their prices, within a market that becomes more and more competitive and CAC rises.

• Question: How can one maintain the profitability of a mature campaign with increasingly challenging CACs?

• Case Study: One of our more robust campaigns has been running for 33 months with several budget increases, and complete CAC/ROAS evolution tracking.

• Product: This is a subscription-based app, targeting a US, mature, gender-balanced, higher-income audience on Youtube & Instagram.

• Tracking: Performance tracking is being done using our client’s designated tracking tool, and conversions are attributed to each influencer to the month each video went live.

 

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These are our main recommendations:

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1. Look beyond CAC.

2. Iterate your offer.

3. Do not be afraid to rise prices.

4. Always be testing.