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MAXIMISING PMAX TO ACQUIRE NEW CUSTOMERS �WITHOUT CANNIBALISING BRAND

JOSE DE CARVALHO

MORE2 – HEAD OF SEARCH

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AGENDA

PMAX Fundamentals
Maximising Efficiency
PMAX & Brand
Case Study

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PMAX

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1^st PARTY DATA

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PMAX - ENHANCED CONVERSIONS

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PMAX - PRODUCT FEEDS

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PMAX - CREATIVE

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PMAX - VALUED BASED BIDDING

Be Honest

Change your tROAS to 100%. It will improve efficiencies

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CAC? (CUSTOMER ACQUISITION COST)

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CPA

CAC

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CAC: Customer Acquisition Cost measures the total cost incurred to acquire a new customer, including marketing, sales, and operational expenses.�

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ECONOMIC MODEL

Net Revenue

COGS

Fulfilment

Contribution

Allowable CAC

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CAC & LVT WORK TOGETHER FOR SEVERAL REASONS:

Maximizing Profitability

Optimizing Marketing Budgets

Churn Reduction

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Optimizing Marketing Budgets: By understanding CAC and LTV in conjunction, you can determine how much you can afford to spend on acquiring a new customer while ensuring that the expected revenue from that customer over their lifetime (LTV) exceeds the cost of acquisition.�Maximizing Profitability: CAC and LTV help you assess the long-term profitability of your customer acquisition efforts. When LTV is significantly higher than CAC, it indicates that your business is generating more revenue from customers over their lifetime than it costs to acquire them, which is a sign of a sustainable and profitable business model.

Churn Reduction: LTV takes into account how long a customer stays with your business. By monitoring LTV alongside CAC, you can identify early signs of customer churn. This enables you to take proactive measures to retain customers, such as improving customer service or providing additional value.

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NEW VS EXISTING EXAMPLE

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REVERSE ENGINEER CAC TO OAS

In this scenario we assume that the AOV is the same across all campaign types.

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BID FOR NEW CUSTOMERS ONLY

Improvements on New customer acquisition

Works best with 1^st party data

Remarketing/ Retention gets forgotten

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BID HIGHER FOR NEW CUSTOMER

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PMAX & BRAND

ACCOUNT REP?

CSS REP?

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PMAX & BRAND

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CASE STUDY PMAX BRAND SPLIT

With minimal visibility on Performance Max campaigns, due to Google’s “black box” campaign set-up, there was no clear view on how much of the total spend was going towards either Brand or Generic activity.

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CASE STUDY PMAX BRAND SPLIT

Split Brand (Shopping campaign) and Generic (PMax), to scale efficiently but also looking towards new customer acquisition.

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THANK YOU��QUESTIONS?

JOSE DE CARVALHO

MORE2 – HEAD OF SEARCH

Strictly Private & Confidential