Your revenue and profit numbers should run your marketing program, not the other way around.
How effective is your advertising? We believe this question can only be answered in the context of revenue and profit. We do the hard work of connecting the dots all the way from advertising to profitability to make smart decisions about the daily management of online advertising. We’ve found over more than a decade of doing Profit Driven Marketing, or Closed Loop Marketing, that making decisions about advertising based on the value it creates is the most efficient way to advertise.
Why You Benefit from Profit Driven/Closed Loop Marketing
- Ad spend is shifted to support the best performing areas
- Revenue and profits become predictable, removing risk
- Constraints to growth are clearly revealed
- Marketing opportunities are defined by their ability to generate revenue, not by perception
What is Profit Driven Marketing?
Profit Driven Marketing is based on a simple idea: Advertising should be purchased based on what it will create in revenue and profit. While the execution of Profit Driven Marketing is complex and requires multiple quantitative techniques and ongoing data analysis, the results speak for themselves.
When Profit Driven Marketing is done right, you pay no more for advertising than makes sense for your business model and customer value. Profit Driven Marketing makes use of data from three distinct sources: advertising channels and networks, behavioral tracking on your web site, and your own financial and customer data. It is only in the combination of these three types of data that the proper value of advertising can be understood.
Profit Driven Marketing includes several core concepts: Audience Segmentation, Value-Based Segmentation, and Customer Centricity. Whether you are familiar with these or not, the idea is simple: you should only put money where it produces the most value. When your marketing spend predictably produces profit, your marketing budget moves from a perceived “cost” to a profit center, dramatically changing your business as risk is removed from advertising.
Profit Driven Marketing is not the easy way to manage digital advertising. But it is the right way.