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Why Your Ads May Not Be as Profitable As You Think
Episode Summary
In this episode of the Free to Grow CFO podcast, Jon Blair and Karl O'Brien discuss the common misconceptions surrounding the profitability of advertising in e-commerce. They explore the importance of understanding unit economics, the distinction between new and returning customer profitability, and the critical role of customer lifetime value (LTV). The conversation highlights the traps brands often fall into when assessing profitability and offers strategies for brands that may not have meaningful LTV. Ultimately, the episode emphasizes the need for a profit-focused mindset…
The skinny
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