Maximizing Return on Ad Spend: Understanding the Impact of Programmatic Campaigns on New vs Returning Customers
Programmatic campaigns can be a great way to drive traffic and increase sales for your dispensary or delivery service. When evaluating performance reporting, it’s essential to understand if your measured conversions are being driven by new or returning customers. Within the paradigm of returning customers – are these customers your loyal shoppers or lapsed customers?
Many ad companies use modeled numbers or very loose attribution logic to drive conversions and present their success to their buyers. This can be misleading as revenue numbers can be inflated by customers who are regularly purchasing anyway – effectively killing the margin on these customers and inflating performance reporting metrics for programmatic media.
To truly understand the impact of your ad campaigns, it’s crucial to track new vs returning customers (you can take it further by bucketing your existing customers and looking at frequency or time since the last purchase to maximize the utility of your programmatic budget.)
Targeting New Customers in the Competitive Cannabis Industry: How to Optimize Your Programmatic Budget
In the cannabis industry, targeting new customers is even more critical. The industry is still relatively new and there is a lot of competition, so it’s crucial to make sure your ad campaigns are reaching the right audience and driving new customers to your business.
Programmatic media should be used as a tool to win new market share or reclaim lost market share – if your loyalty marketing efforts are successful in retaining your loyal shoppers and you include those customers in your programmatic campaign, you are simply increasing your cost to stay engaged with those shoppers.
Navigating the Challenges and Opportunities of the Cannabis Industry: The Importance of a Comprehensive Marketing Strategy
Working with a marketing partner who understands the unique challenges and opportunities of the cannabis industry can help you maximize your return on ad spend and drive growth for your business. This requires some complicated data technology – your marketing partner should be able to distill this to easy-to-understand metrics.
Your programmatic ad campaigns are just one piece of the puzzle when it comes to growing your business. To truly succeed, you need to have a comprehensive marketing strategy that includes a mix of tactics to reach new customers, retain existing ones and measure performance.
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