A premium brand in its second decade raised its ad spend by around sixty per cent. Revenue rose around twenty. Profit fell, and the founder was certain the cause was her advertising.
The advertising accounted for one seventh of the decline. The other six sevenths came from her free revenue base — organic, direct, email and repeat purchase — growing just fourteen per cent while spend grew four times faster.
In this episode I unpack why blended marketing efficiency is a leverage ratio rather than an efficiency metric, the three legs every profitable brand stands on, and why most brands have built all three out of rented material. Plus the three numbers to check this week that will tell you which of your legs is short.
Growth strategy for premium, founder-led eCommerce brands.
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Catherine Langman. Innehållet i podden är skapat av Catherine Langman och inte av,
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