Page 16 - The Ultilmate Guide to Retail in 2023

Advertising costs keep increasing:

“A channel-specific dynamic

Digital advertising is becoming more expensive. pricing strategy is of utmost

Meta’s CPM (cost per thousand) has increased 61% importance. For this, you need

year over year; Google’s has gone up 75%. This is high-quality up-to-date product

making it increasingly difficult for retailers to achieve

the same ROAS as before. Brands are placing greater data and a transformation

emphasis on their ad copy, consistent messaging, mechanism to quickly cope with

and ensuring that every ad cost is strictly aligned change. This is true for pricing

with their overall strategy in order to improve their as well as descriptive and

ROAS.
visual product data alike. Only

In addition, many marketers are shifting away from if you have your foundational

ROAS to focus more on POAS, or Profit on Ad Spend. product data in order can you

Unlike ROAS, POAS takes into account the profit start thinking about layering

margin on each sale, enabling brands to gain a better

understanding of how to prevent emptying their more specific optimization

pockets on ad expenditure. mechanisms on top.”

Robert Smit / An Impact Cube speaker, and the

Product Manager at Channable.

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