I've spent a fair amount of time so far this year doing ad hoc analysis of year-over-year January performance for a handful of subscription ecomm brands. To make sure I wasn't missing any macro trends, I analyzed Facebook campaign data for a basket of North American focused, D2C subscription ecomm clients (10 in total). I pulled data for Jan 1-12, 2020 (Jan 1 was a Wednesday last year) and Jan 1-12, 2021 (Jan 1 was a Friday this year). MTD (Jan 1-12, 2021) spends for these brands range from $100k on the low end to $1m on the high end, but most are in the $300-500k range.
I really wanted to see how Cost per 1,000 People Reached and Cost per Unique Outbound Click compared to see if there was a uniform cost increase across these campaigns. I also pulled Spend YoY, as most of our clients have increased their spend YoY (which adds a massive variable to any time period performance comparisons, obviously).
Here is what I found:
These brands saw a pretty consistent ~20% increase in Cost per 1,000 People Reached, but there is a great deal more variability on the CPCs, and that's despite our average client spending ~80% more year over year. For me, this data confirms the more or less consistent CPM increases on the platform which have been observed/commented on countless times, but at least for these clients we aren't seeing CPCs rise at the same rate.
Notably, I did not include CVR or CAC data, as many of these clients use attribution windows that really require a little bit more time to allow for a reasonable year over year comparison. Perhaps in a subsequent post I'll come back and look at CVR and CAC YoY as well!
If detailed targeting is used to "guide" ad delivery, how far off is the DTC equivalent of Facebook's Automated App Ads?
The second post in our paid search account audit series in which we take a look at search keyword match type distributions.
When managing subscription-only ad campaigns on Facebook, return on ad spend becomes nearly meaningless. Profitability rarely ever happens after the first purchase but typically comes from a user’s lifetime value as they submit recurring payments months into the future.