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The topic de jour in eCom these days is scaling spend... raising your LTV is the most stable and reliable way to scale Facebook ad spend. The higher the PSM, the higher the media budget can be. Remember that PSM = LTV / (CPA + COGs). CPA can be volatile, and COGs can be really stable. LTV is easy to manipulate and creates the greatest opportunity for growth.
5
66 ratings
The topic de jour in eCom these days is scaling spend... raising your LTV is the most stable and reliable way to scale Facebook ad spend. The higher the PSM, the higher the media budget can be. Remember that PSM = LTV / (CPA + COGs). CPA can be volatile, and COGs can be really stable. LTV is easy to manipulate and creates the greatest opportunity for growth.
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