In-platform metrics often showcase YouTube as having a notoriously high CPA (Cost Per Acquisition), whereas Performance Max (PMax) and lower-funnel marketing activities typically have lower CPAs. Both activation channels are important, so where should you prioritise spending?
Focusing on a channel with a low CPA can provide short-term gains by targeting a customer group with high purchase intent. However, using econometric tools that measure full-funnel attribution allows you to see the true impact of multiple growth levers simultaneously. This enables you to reallocate your budget towards various marketing levers that drive new customers.
COmpass, our marketing data suite, helped an international beauty brand measure their full-funnel activities. In-platform metrics showed a staggering CPA of £52 on YouTube, but through COmpass, we measured a true CPA of £19. This resulted in a reallocation of the budget, increasing spend on YouTube by +40% MoM, based on figures closer to the truth than ever before.
This demonstrates the importance of using comprehensive attribution tools when assessing a brand’s marketing strategy, as in-platform results can be misleading. Based on these insights, we increased our YouTube spend and launched over 10 assets within three months. From March to May 2024, this beauty brand ran paid media across TikTok, YouTube, Meta, and Google. YouTube delivered the second-strongest CPA across all these channels, acquiring over 1,000 new customers with a £20 CPA.
COmpass has enabled us to make holistic, data-informed decisions. We’re continuing to expand our presence on YouTube with different creatives, scaled spending, and exciting new tests such as YouTube whitelisting... so watch this space.
If you're ready to reach new customers and drive top-of-funnel awareness, we're sharing our top tips on how you can supercharge your marketing strategy:
To discover how COmpass can transform your growth, then drop us a line.
