Economic uncertainty presents significant challenges for businesses, from tighter budgets to shifting consumer priorities. In such times, maximizing return on investment (ROI) becomes a crucial strategy for survival and growth. For marketers, this means making every dollar count by identifying what works and doubling down on it.

In this guide, we’ll explore how data-driven marketing can help you navigate economic turbulence, optimize your campaigns, and achieve sustainable growth — all while maintaining a sharp focus on ROI.

5 Strategies for Maximizing ROI

1. Prioritize Real-Time Data

In an uncertain economy, timely decisions can make or break a campaign. Relying on delayed or outdated data puts your marketing efforts at risk of being reactive instead of proactive. Real-time data allows you to identify trends, adapt strategies, and allocate budgets as opportunities arise.

Example: A fitness apparel brand notices a sudden spike in performance on TikTok due to a trending hashtag. Using real-time insights, they quickly launch a related ad campaign, increasing conversions by 30% while the trend is still active.

2. Prioritize High-Performing Channels

Not all marketing channels perform equally. Identifying and prioritizing your own unique high-performing channels is one of the quickest ways to maximize ROI. Metrics like Return on Ad Spend (ROAS) and Marketing Efficiency Ratio (MER) can help pinpoint where your efforts are paying off.

Example: A direct-to-consumer skincare brand discovers that TikTok ads generate a 25% higher ROAS compared to Meta Ads. By reallocating 30% of their ad budget to TikTok campaigns, they achieve a significant revenue boost while maintaining overall efficiency.

3. Focus on Retention Over Acquisition

Customer acquisition is expensive, particularly during economic downturns: acquiring a new customer can cost 5-25x more than retaining an existing customer. Retention strategies have the potential to deliver a higher ROI by leveraging existing relationships. Companies have a 60%+ chance of selling to an existing customer versus a <20% chance of selling to a new customer — you’ve already built that trust, so use it to your advantage!

Metrics like Customer Lifetime Value (CLV) and returning customer rate are critical for assessing the impact of retention efforts when budgets are tight.

Example: A home decor brand identifies a dip in returning customers through Northbeam’s analytics. By launching a loyalty program that offers exclusive discounts to repeat buyers, the brand increases its returning customer rate by 20% in just three months.

4. Optimize Your Ad Creative and Messaging

When budgets are tight, it’s essential to make your ad creative work harder for you. Tailoring messaging to resonate with your audience’s current needs and priorities can lead to significant improvements in performance.

When you need to optimize for every cent, take advantage of A/B testing to refine visuals, headlines, and calls-to-action to make sure your creative and messaging is going as far as it can.

Example: A SaaS company recognizes that its audience is focused on cost-saving solutions. By emphasizing "efficiency" and "affordability" in its ad copy over its existing “enterprise” messaging, the company improves its conversion rate by 15% and achieves a stronger ROI on its campaigns.

5. Improve Funnel Efficiency

A leaky funnel can erode ROI, no matter how effective your ads are. Optimizing every step of the customer journey — whether it’s simplifying checkout processes, improving website speed, or enhancing user experience — can make a significant difference.

Example: An e-commerce brand analyzes its funnel and discovers a high drop-off rate on the payment page. By streamlining the checkout process and offering more payment options, the brand reduces cart abandonment and sees a 10% increase in completed purchases.

Northbeam Empowers Data-Driven Decisions

Economic uncertainty doesn’t have to mean stagnation or decline. By embracing data-driven strategies, businesses can navigate challenges, optimize marketing efforts, and achieve sustainable growth.

Northbeam simplifies the process of tracking and optimizing marketing metrics, offering real-time insights and actionable recommendations. Its cross-channel attribution capabilities give businesses a comprehensive view of their campaigns, helping them identify high-performing channels and allocate budgets effectively.

During times of economic uncertainty, tools like Northbeam provide marketers with the clarity and precision needed to drive results and adapt to change with confidence.

Northbeam showcases a futuristic city with holographic figures, drones, and digital interfaces, guiding e-commerce brands on Meta's new sensitivity category restrictions.

January 27, 2025

Blogs

min read

Meta’s New Sensitivity Category Restrictions: A Guide for E-Commerce Brands

How to thrive ahead of new privacy restrictions

Lior Torenberg

Meta’s new sensitive category restrictions are set to reshape the advertising landscape for e-commerce brands in industries like health, wellness, finance, and politics.

These changes, designed to enhance user privacy and align with global regulations, could have an even greater impact on affected brands than iOS 14 did in 2020.

For advertisers, these restrictions mean losing access to important tools for bottom-funnel optimizations, such as tracking purchases and sign-ups, and limitations on precise audience targeting.

While the challenges of these new restrictions are significant, brands can adapt by revisiting their marketing strategies and leveraging platforms like Northbeam to maintain an edge.

We’ll break down what these changes mean, how to respond effectively, and how Northbeam can support your brand through this transition.

What are Meta’s new sensitivity category restrictions?

Meta’s policy update introduces new limitations for advertisers in “sensitive” industries like health, wellness, and finance in order to align with global privacy standards.

Companies in these categories will start to see these changes in 2025:

Limited access to lower-funnel events like Add to Cart (ATC), Purchase, and Sign-Up. Tools like the Meta Pixel and Conversions API will be significantly constrained for affected brands.
Loss of precise targeting options, making it harder to personalize ads and reach specific audiences.

With the loss of these tracking options, advertisers will have to get creative to maintain or improve ad performance.

There is also the risk of restrictions due to misclassification, which means your company should be careful about the content it posts if it doesn’t want to be classified under the categories expanded on in the section below.

Which industries are affected?

The restrictions target brands in:

Health and Wellness: Supplements, skincare for specific conditions, medical devices, and telehealth.
Finance: Loans, investments, and credit repair services.
Sexual Wellness: Products like condoms, personal lubricants, and sexual health education platforms.
Gambling and Alcohol: Online casinos and alcohol delivery services.
Additionally, brands on the periphery — such as general wellness or fitness — may also face new limitations and challenges.

How can I adapt to this new reality?

Brands can adapt to these changes by revising their strategies and focusing on areas they can control.

First, it is crucial to leverage first-party data. Building and nurturing owned audiences through email and SMS campaigns can create more direct and reliable customer connections. Additionally, using tools like Northbeam to analyze and activate first-party data will allow for personalized campaigns without over-reliance on Meta’s ecosystem.

Second, brands should adjust their creative approach. Avoiding sensitive language and focusing on aspirational benefits or general wellness themes can make campaigns more privacy-safe while still engaging audiences. Clear and creative messaging will play a significant role in maintaining audience interest.

Third, diversifying ad spend is essential. Brands should explore opportunities across channels so they can test, validate, and extend learnings to Meta where insights may be lacking. Testing new channels and diversifying your spending is a smart move in general — and when your platform analytics are limited, it can provide much-needed insights.

How can Northbeam help?

Northbeam provides powerful tools to help brands navigate Meta’s restrictions while maintaining data-driven marketing strategies.

Northbeam’s multi-touch attribution tool offers a complete view of your customer journey across channels, reducing reliance on Meta’s tracking and providing deeper insights into performance. By seamlessly integrating first-party data, Northbeam helps brands better understand their customers and create targeted campaigns that don’t rely solely on Meta’s ecosystem.

Additionally, Northbeam’s predictive analytics enable brands to model outcomes and optimize ad spend, even in a more restrictive environment. With omnichannel attribution capabilities, brands gain clarity on how each marketing channel contributes to revenue, allowing for more effective budget allocation and identification of growth opportunities.

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Ready to adapt? Get in touch with our team to learn more.

January 21, 2025

Blogs

min read

What Is ROAS? A Beginner’s Guide to Return on Ad Spend

Learn why ROAS matters and how to maximize your returns

Lior Torenberg

Return on Ad Spend (ROAS) is one of the most important metrics in digital marketing, providing a clear picture of how effectively your advertising dollars are driving revenue. Whether you’re running paid campaigns on Google, Meta, or TikTok, understanding ROAS is crucial for optimizing your ad strategy and ensuring sustainable growth.

In this beginner’s guide, we’ll break down what ROAS is, why it matters, how to calculate it, and how to use it to improve your marketing performance.

What Is ROAS?

ROAS, or Return on Ad Spend, measures the revenue generated for every dollar spent on advertising. It’s a straightforward metric that helps marketers understand whether their campaigns are profitable and which channels deliver the best results.

Why Does ROAS Matter?

ROAS is essential for several reasons:

Campaign effectiveness: ROAS tells you whether your advertising efforts are driving enough revenue to justify the investment.
Budget allocation: By comparing ROAS across different campaigns or channels, you can identify where to allocate more budget for maximum returns.
Strategic decision-making: A high ROAS indicates profitable campaigns, while a low ROAS signals the need for optimization or a re-evaluation of your strategy.
ROI: Tracking ROAS consistently helps you refine your approach and improve the overall return on your advertising investment.

How Do You Calculate ROAS?

Calculating ROAS is simple, but it’s important to ensure you’re using accurate data. Here’s a step-by-step guide:

Determine revenue: Identify the total revenue generated from your ad campaign during a specific period. This could include direct purchases, sign-ups, or other conversions.
Calculate ad spend: Add up all costs associated with the campaign, including media buys, creative production, and management fees.
Apply the formula: Divide revenue by ad spend to calculate your ROAS.

Example:

Revenue: $10,000
Ad Spend: $2,500

ROAS = $10,000 / $2,500 = 4.0

In this example, the campaign generates $4 in revenue for every $1 spent on advertising.

What Is a Good ROAS?

The definition of a “good” ROAS varies depending on your industry, business model, and goals. Here are some general benchmarks:

E-commerce: ROAS of 2.5 to 4.0 is considered average, with anything above 4.0 being strong.
Lead generation: Since these campaigns focus on capturing leads rather than immediate revenue, a ROAS of 1.0 to 2.0 may be acceptable.
High-margin businesses: Companies with high-profit margins may thrive with a lower ROAS, as their profit per sale is higher.

How Can You Improve Your ROAS?

If your ROAS isn’t where you want it to be, don’t worry — there are several strategies to optimize your campaigns and boost returns.

Refine Targeting

Targeting the right audience is key to maximizing ROAS. Use customer data to create detailed buyer personas and leverage platforms’ advanced targeting options, such as lookalike audiences or interest-based segments.

Optimize Creative

Your ad creative — including visuals, headlines, and calls-to-action — should resonate with your audience. A/B tests different versions to determine what works best and iterate accordingly.

Focus on High-Performing Channels

Identify which channels deliver the highest ROAS and consider shifting more budget to those platforms. For example, if your TikTok ads outperform your Google Ads, invest more in TikTok while optimizing Google campaigns.

Improve Landing Pages

An ad can only do so much; the destination matters, too. Ensure your landing pages are fast, user-friendly, and designed to convert. Simplify forms, add testimonials, and use clear CTAs to increase conversion rates.

Monitor and Adjust

ROAS is not static; it changes over time. Regularly analyze your campaigns and make adjustments based on performance data. Tools like Northbeam can provide real-time insights to help you stay on top of your metrics.

What Are Some Common Mistakes to Avoid?

To get the most out of your ROAS calculations, avoid these common pitfalls:

Ignoring attribution: Use advanced attribution models to track the full customer journey, ensuring accurate ROAS measurement across channels.
Focusing solely on ROAS: While ROAS is important, it shouldn’t be the only metric you track. Consider other KPIs like Customer Lifetime Value (CLV) to get a complete picture.
Overlooking hidden costs: Include all relevant costs — not just ad spend — when calculating ROAS. This ensures a more accurate view of profitability.

How Can Northbeam Help?

Northbeam’s advanced analytics and attribution tools make it easy to track and optimize ROAS. With real-time insights, cross-channel tracking, and actionable recommendations, Northbeam empowers marketers to identify high-performing campaigns, allocate budgets strategically, and maximize overall ROI.

Supercharge your next quarter with unparalleled marketing intelligence.

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5 Strategies to Maximize ROI During Economic Uncertainty