The Importance of Profitable Customer Journeys in Facebook Advertising

First, we have to remember that targeting happens with the ad, not the audience. Studies have shown that over a third of the people in your Facebook targeting audience are there by a mistake, and sometimes more than half of the people in that interest group are there because they don’t like something.

In summary, using Facebook interest groups to target ads may not be effective because they often contain a large number of people who are not actually interested in the product or service being advertised, and being in an interest group does not necessarily indicate that a person has any intent to make a purchase.

Also, we have to remember that we are buying attention, not results. Our business should be built to convert that attention into profitable customer journeys, which rely on PSM.

PSM = LTV / (CPA + COGS)

Facebook allows us to have a stable and projectable CPA, and COGS is out of our control. From there, it’s about focusing on cash flow profiles and LTV.



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