Companies might need to choose between sales volume and profitability.
With the economic uncertainty still looming large, businesses need to reconfigure their budgets and create a solid plan for their paid digital ad campaigns. To formulate a strategy, they need to assess how metrics, like website traffic and conversions, have behaved, after the lockdown was lifted.
Businesses aiming for sales volume should use the findings from these analyses in conjunction with factors like seasonality and year-on-year trends to figure out targets. Marketers should then analyse whether the new budget and objectives allow them to meet their overall goals and make adjustments accordingly.
While businesses, which are aiming for profitability, need to use the same process of rigorously analysing numbers, they should be ready to cut back on certain campaigns. Focusing on maintaining profitability can, however, lead to less overall revenue.
[5 minute read]