Last week I was chatting with an analyst at a major auto service chain, and he said something that stuck with me.
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They spend five million dollars a year on marketing.
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Three and a half million of that is pure ad spend.
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So Facebook and Google pocket three and a half million, and the rest (about a million and a half) has to cover everything else. Campaigns, creative, PR, organic, events, payroll, you name it.
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Then he tells me all their ads are static graphics. No motion, no story, just flat images. Their ROAS? Around 1.2x.
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So the only way they make money is by spending more. They scale until a razor-thin 20% margin finally adds up to something decent.
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And I had to ask: why are you putting three and a half million dollars behind static ads that barely work?
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If we wanted to burn money that fast, I’d just buy you a blowtorch.
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Here’s the real issue: paid ads are both a quality and quantity game. You need great creative to get great returns, and enough variations to actually sp...