Profitable Advertising Plan: 7-Day Framework

ABOUT THE PLAN

Bonus material from the webinar on profitable advertising

This is the bonus material from the December 13 webinar on profitable advertising: a compact 7-day implementation plan you can follow day by day, plus benchmark KPIs per industry so you can compare your own numbers.

All slides from the presentation are here: https://pitch.com/v/webinar-13-desember-vfyhmd

DAY BY DAY

7-day implementation plan

Day 1: Preparation and analysis

Review your ad accounts. Run a quick analysis of your current ads, using KPIs like MER, NCPA and profitability.
Set clear goals. Define which KPIs to focus on, for example growing new customer volume or improving NCPA. Prioritize profitable channels.
Use ProfitMetrics to measure POAS. Profit on ad spend.
Compare your backend numbers. Find out if you are lagging on any front, see the benchmark table below.

Day 2: Adjust your campaign setup

Separate new and existing customers. Build TOF campaigns (Top of Funnel) for new customers only: 0% existing customer cap, exclude existing customers and use dynamic Klaviyo audiences.
Implement shadow accounting. Start monitoring the bottom-line effect of your advertising daily to make sure the ads deliver the profitability you want. You will quickly spot patterns and find opportunities you would otherwise miss.
Set up attribution tools. Find out which channels do what.

Day 3: Optimize your ads

Focus on best practice. Use ProfitMetrics or similar to measure profitability per ad channel, and cut budget on campaigns that do not deliver the desired effect.
Optimize the creatives. Replace ads with low CTR and test new copy or images.

Day 4: Testing and troubleshooting

A/B testing. Test campaigns with different audiences and bid strategies. Document the results and adjust.

Day 5: Reporting and overview

Update KPIs daily. Use shadow accounting to track the bottom-line effect.
Analyze the results. Identify which channels play which role, either top funnel or closer to conversion.

Day 6-7: Scale up

Scale profitable campaigns. Increase budget on your best campaigns with high MER and low NCPA.
Summarize the results. Share the results with your team and set the strategy for January.

BENCHMARKS

Benchmark KPIs per industry

Use the table to compare your own backend numbers and find out if you are lagging on any front.

Industry	Gross profit margin	Product cost (% of sales)	Operating margin (EBITDA)	Conv. rate	ROAS	AOV (NOK)	LTV (NOK)
Apparel	55-65%	35-45%	12-15%	2.5-3.5%	6-8	900-1300	4000-7000
Electronics	15-25%	75-85%	6-8%	1.5-2.0%	5-7	2000-3500	5000-9000
Supplements	60-70%	30-40%	15-20%	3.0-4.0%	6-9	400-700	3000-5000
Makeup	65-75%	25-35%	15-18%	3.0-4.5%	7-10	300-600	2500-4500
Skincare	60-70%	30-40%	12-15%	2.5-3.5%	6-8	500-800	3500-5500
Home & interior	50-60%	40-50%	10-14%	2.0-3.0%	5-7	1200-2500	5000-8000

Next steps

Profitable advertising ultimately comes down to having enough good ads to test. See how we work with street interview ads, explore our cases, or find more guides on the blog.