Here's a brand that is paying too much for Paid Social at this time ... or so it seems.
In this Marketing Budget Experiment, we increase Paid Social spend by 10% for the next year. We spend $709,000, and we don't get a whole lot in return.
- Demand increases by $1.2 million.
- Profit decreases by $300,000.
- Incremental ROAS? About 1.69. Yikes!
- $94,000 profit in the second year.
- $100,000 profit in the third year.
- $90,000 profit in the fourth year.
- $84,000 profit in the fifth year.
- A net gain of $67,000 profit across five years.