sec title

Things to watch out for when increasing budgets

Aug 27 ROI Comments off

Why do agencies always push clients to increase their spend, to grow of course. Increase spend should theoretically increase sales. If you have a solid strategy then yes, if you have stable ROAS and the agency can prove ways of scaling, by all means. But watch out for the % of spend model and the sake of increasing the budgets which could lead to all sorts of clever ways of spending those higher budgets without realising the expected outcome of the bottom line. Somewhere along the line there could be the disconnect between the increase in spend and the marginal increase in sales yet – the leads to look like they’re increasing. There could be all sorts of  problems.

Tracking/double counting

Leads getting “lost”  by poor CRM systems

Operations not having enough capacity

If you’re testing to increase spend consider a performance based model.