The Two Phases of Ad Costs: What Every Digital Marketer should Know

Hey there, digital marketing pros! Today, let’s dive into something that’s been on my mind lately — the journey of ad costs, especially on platforms like Facebook. We’re going to explore customer acquisition costs, product feedback, and the importance of patience in digital marketing.

Phase 1: The Marketing-Only Phase

Picture this: You’ve got a new product or service, and you’re ready to make waves in the digital world. In this first phase, your cost of customer acquisition boils down to two key factors:

1. How effectively your creative conveys value
2. The offer on your landing page

It’s all about making that stellar first impression.

Phase 2: The Marketing Plus Feedback Phase

This is where things get interesting. Your costs start to depend on some real-world factors:

• The time it takes for customers to receive your product
• How quickly your product demonstrates its value

Let’s break it down with some examples:

• Digital design downloads: Instant feedback
• Apparel: As soon as it’s tried on
• Nutritional blend (like mushroom coffee): A few days of use
• Skin serum: A few weeks of application
• Gym membership or mentorship: Months or even years

The key is understanding your product’s “time to value” — it’s crucial for interpreting those ad cost trends.

The Long Game: Campaign Efficiency Over Time

Here’s something to ponder: We’ve all seen Facebook ad campaigns running for years, right? But at what point does brand value start to take over?

Consider this:

• Testimonials on your ads, website, and Trustpilot begin to carry more weight
• Facebook’s algorithms might start taking a backseat to organic word of mouth

The takeaway? Your initial cost per acquisition is likely to fluctuate rather than remain static.

How Costs Can Decrease Over Time

If your product delivers real value, you might see those ad costs start to dip. Here’s what’s happening behind the scenes:

a. Positive comments on ads can significantly boost ROI b. Repeat purchases optimize Facebook’s pixel c. For high-ticket items, a strong Trustpilot score can be a game-changer d. Your weekly Facebook feedback score plays a crucial role in traffic quality

What This Means for Marketers

1. Don’t get discouraged by initial costs — great campaigns take time to build
2. Exercise patience — wait for real-world results before scaling
3. Stand confidently behind your product
4. Give your customers time to experience and appreciate your product
5. Sometimes, minor tweaks can transform an average product into a top performer

Remember: A high initial cost might simply indicate that your audience needs time to familiarize themselves with your offering.

The Copycat Conundrum

Here’s a pro tip: Don’t get too excited about those warm audiences right off the bat. Sure, it’s tempting to think you can easily convert folks who are already interested in similar products. But beware! This can lead to false, unscalable campaign data.

And here’s a little secret: You don’t need separate campaigns for traffic, conversions, and retargeting. A well-crafted sales conversion campaign can handle all three. Don’t let anyone tell you otherwise!

The Secret to Long-Lasting Campaigns

Want to know what really makes a campaign endure? Creating your own unique audience segment. It might take longer and cost more initially, but it’s invaluable because it’s harder to replicate than most trade secrets.

The Bottom Line

In the world of digital marketing, one truth remains: No amount of marketing prowess can salvage a subpar product. But if you’ve got a winner on your hands? That Marketing Plus Feedback phase could have some pleasant surprises in store.

So, take a deep breath, trust the process, and who knows? You might just be nurturing the next big “Digital First” brand of our era.

I’m eager to hear your thoughts! Have you experienced these phases in your campaigns? Any unexpected turns? Let’s discuss in the comments!

P.S. Full disclosure: I had some assistance from Claude AI in formatting this post. It’s my first time posting on Medium, so I’d appreciate your feedback not just on the digital marketing insights, but also on how to optimize these Medium posts. Let’s learn and grow together!