Automated transcript:
So this point is called the audience saturation point. And this corresponds exactly to the moment where your growth will start to decrease because you will continue to spend money. But you won't make any new sales. So there's an optimum point where you should stop spending. It depends on any merchant and there's no good answer.
It depends if you want to prioritize growth or if you want to prioritize growth. If you want to prioritize growth, you will start earlier on the right hand, uh, graph. You will start at the gray point. This is where your growth is maximized. But as you can see, if you look at this exact same gray point on the left hand side, you have still revenue that you can get by continuing to spend.
So you have to decide, do you want to favor growth versus growth or growth versus growth? This graph highlights what you will get and what you will lose. In green is what you will get and in red is what you will lose. If you want to increase revenue, you will decrease growth. And if you want to increase growth, you will decrease revenue.
The other aspects that will impact the success of your campaigns is the audience qualification stage. You remember this graph when we told, they told about it earlier. If we add now an axis, which is the rows and we look at every kind of campaign link to the rows. Our converted audience will be targeting by ECRM and retargeting campaigns.
These campaigns will provide very high rows because the audience is the most qualified one. Then when you will start to target your consideration audience, With conversion campaign, the rows will decrease because obviously this audience is less qualified to the previous one. So you will have to decrease rows, but in exchange, you will be able to get more people to target.
So you will be able to collect more revenue and make more sales and so on with the brand awareness campaign and the unaware, um, audience. So keep this in mind. This leads to a stepwise investments. cycle. Basically, you will start by launching your, uh, ECRM campaign and retargeting campaign on your converted audience.
Okay. So you will start spending on this campaign. What will happen is your growth will grow from zero basically to high level. So will your revenue. The thing is as soon as you will reach the audience saturation point that we mentioned earlier, you will have to stop spending. So you will launch your conversion campaign on a less qualified audience in order to be able to continue to spend.
