Agencies

CLV is how much money a customer spends with your business for the duration of your relationship. It’s an important—yet overlooked—metric: rather than looking at a sale as simply a one-off exchange, CLV considers how valuable a customer is over time

Understanding this can help you spend your marketing budget more wisely and keep your customer acquisition costs low. After all, it costs more to attract a new customer than it does to close an existing prospect or keep an existing customer. 

Keeping your CLV high is vital to the long-term success of your business. 

What is CLV?

Customer Lifetime Value (CLV) refers to the profit you expect to make from a customer over time.



For some businesses, this may mean that your profitable customers make larger purchases or many repeat purchases, thereby increasing their value to your business over the lifetime of their relationship with you. 

However, for many industries with long sales cycles, that profit may come months or even years after you’ve established the awareness of your business with the customer at the top of the funnel (think: buying a car, applying to a university, procuring new software, or purchasing a home). These are big decisions and consumers need time to evaluate their purchases. 

5 Reasons to Measure CLV for Your Paid Search Advertising Campaigns 

Regardless of the nature of your customers’ CLV, optimizing your marketing campaigns to CLV is good for business. Here are five reasons CLV matters:  

  1. It helps you keep valuable customers

If you can identify and target high CLV customers, this should translate into higher ROI and could be a good way to improve your campaign performance. 

You may find that there are segments of the market who value your product but have a lower than average CLV/CAC ratio, meaning you're spending too much on acquiring individual customers. If so, it may be worth exploring ways in which you can acquire these new customers at a lower cost or perhaps look for marketing activities where you might get more exposure for the same budget (e.g., by increasing reach).

  1. It decreases CPA costs

Customer Cost-Per-Acquisition (CPA) is the amount of money a company spends on acquiring new customers divided by the number of new customers acquired during a given period. 


You'll notice that different customer types have different CLVs, which means they contribute more or less than others towards paying your CPA. You can use CLV to compare campaigns and determine which ones are performing better, resulting in improved return on investment (ROI).

It's important to monitor this metric over time, as you may find you can reduce CPA while maintaining or even improving your bottom line. This is because the lifetime value of certain customer segments will increase with time on your platform, resulting in an overall decrease in acquisition costs.

  1. It allows you to optimize your bids to different stages of the funnel

Full-funnel bidding allows advertisers to use top of the funnel conversion types for bidding while also factoring in final sales as a second bid factor. This bidding solution enables advertisers to grow efficiency and revenue from the sales funnel’s final stage while maintaining reactivity to recent market changes. Bids stay reactive to market changes, while efficiency targets are based on latent conversion metrics. 

  1. It helps you calculate campaign effectiveness

CLV will reveal which paid search campaigns are more successful, allowing you to optimize your total marketing spend. 

You can compare campaign effectiveness by sub-segmenting customers by their CLVs. For example, instead of just looking at conversion rates for all traffic sources as a whole, you could break down the conversion rates by each campaign. This will make it easier to understand which traffic sources are most effective at converting.

  1. It helps you grow in the long run

CLV isn’t something you need to track all the time, but ignoring it could spell trouble. Keeping an eye on CLV helps you spend your marketing budget more wisely, engage with your customers more effectively, and keep your CPA costs down through better loyalty—all of which helps your bottom line. 

How to Calculate CLV

The simplest formula is as follows: 

CLV = Customer Value (average order spend x number of orders in a year) x Average Customer Lifespan (in years) 

To calculate CLV, you need to track customer metrics over time and calculate your customer churn. This will allow you to determine CLV across any given timeframe.



You may want to deduct CAC (customer acquisition cost) from your total to give you a deeper understanding of the true value of a customer. 

Using a comprehensive reporting suite like MarinOne, you’ll be able to Identify which channels are driving revenue to your business. You’ll then need to track offline sales and interactions back to their source with a conversion tracking solution like Marin Tracker. Make sure to continue tracking touchpoints beyond the initial click-through, all the way through conversion. 

How to Improve CLV

Here are some tips on improving your CLV. 

  • Optimize onboarding. As soon as possible, the user should be able to get value from your product or service (e.g., signups, downloads).
  • Don't focus on customer acquisition alone. It's important to make sure users are retained over time.
  • Optimize CLV by marketing based on customer behavior. If people aren't making repeat purchases or converting to long-term high-value purchases, consider investing in marketing efforts to increase retention.
  • Look for ways to improve value. If customers are joining, but not staying around or buying after a certain period of time, focus on improving user experience and product features.
  • Over-deliver. If your product and service are great, people will come back.
  • Boost user experience. If you can provide an improved user experience, make sure to communicate this benefit in all your marketing efforts. Consider advertising on social media platforms that offer the opportunity for strong engagement.
  • Increase average value order. If customers are buying, but not purchasing many items per order, then there is room to boost sales.
  • Gather market research. If you can gather unbiased opinions about your product or service from potential customers, use this data to create marketing campaigns that will appeal directly to your target audience.
  • Uncover business drivers. You may need to modify your business plan based on what customers are saying.
  • Improve customer service. If you’re not delivering great customer service, customers will avoid dealing with you in the future. Not only that, but they’ll likely share their experiences on social media—which could turn away potential new customers.

Conclusion

Measuring CLV plays an important role in determining ROI, optimizing your advertising spend, and keeping your CPA low—all of which means less budget spent on search campaigns. Optimizing your CLV can provide valuable insights regarding whether or not there is excessive spending on your search campaigns. CLV allows you to evaluate the financial impact in order to re-strategize regarding how various programs are measured and attributed.

How MarinOne Can Help

MarinOne’s powerful self-serve platform connects your offline conversion data to the ad clicks that ultimately drive the sale, making it easy to see which customers are the most valuable and which campaigns have been effective in closing customers. From analysis and reporting to advanced bidding algorithms—analyze the most valuable shoppers, optimize your bids to revenue, and focus your efforts on your best customers. This leads to extending your marketing spend while attracting high-value customers to your brand.

Learn more about the benefits of MarinOne’s full-funnel optimization.  

You’ve likely heard that Google is sunsetting the Expanded Text Ad (ETA) format in favor of Responsive Search Ads (RSAs). It’s Google’s next big push for automation in its advertising platforms. While this may seem like a big change, it’s nothing to worry about as long as you prepare. Luckily, the sunset isn’t happening until June of 2022, and Marin’s industry experts are here to answer some commonly asked questions:

What Exactly Are Responsive Search Ads (RSAs)?

Traditional Google text ads consist of static headlines and descriptions, so advertisers provide specific headlines and descriptions which remain constant within an ad. Google then rotates that version with your other static ad versions according to your campaign settings.

When creating an RSA, you’ll input a variety of different headlines and descriptions. Google and Bing will then rotate through different combinations of assets, serving the combination that seems best based on the demographic data of the person who is searching. The purpose of RSAs is to improve the personalization of search ads through automation. This personalization should lead to improved performance, and eliminate the need for you to run lots of ad copy tests as the engines are basically doing the testing for you.

How Many Headlines and Descriptions Can I Include in an Ad?

You can input at least 3 and no more than 15 potential headlines.

You can input at least 2 and no more than 4 potential descriptions.

The publishers recommend using at least 8 Headline Assets and at least 3 Description Assets.

What Will Happen to My Expanded Text Ads?

You will not be able to create new ETAs. Your current Expanded Text Ads will continue to serve, but you won’t be able to edit them. You can still play, pause, or remove them, but the ad content will be unchangeable. Reporting for your current ETAs should not be impacted in MarinOne or the platforms.

Will I Have Any Control Over Which Headlines and Descriptions Serve?

Yes, you have the option to pin assets to certain positions in the ad. For example, if you have a top performing headline that you’d like to display as Headline 1 every time your ad serves, you can pin that headline to position 1. You can also pin descriptions.

For example, if you pinned “Low Prices” to headline 1, the every time that ad serves, “Low Prices” will be the first thing people see.

But that being said…

Should I Pin My Top Performing Assets to Position 1?

My natural instinct was to pin top performing headlines and descriptions from my ETAs to my RSA positions 1 and 2. However, this often hurts the ad’s quality score, sometimes even knocking a ‘good’ ad down to ‘poor’ quality, therefore limiting its ability to serve in the SERP.

In order to avoid a decrease in quality score while still maintaining control over your ads, Google recommends pinning 2 or 3 headlines and descriptions to each position. This allows Google to rotate those assets, and may prevent decreases in quality score.

For example, if you pinned “low prices” and “shop now” to headline 1, Google will rotate through those options, so every time the ad is served people will see one of the two headlines in position 1.

How Will I Analyze Performance in MarinOne?

MarinOne users are already accustomed to the performance benefits the platform provides for all their search programs, and RSAs will be no different. The digital marketers at Marin have already made changes to help you measure, manage, and optimize your RSAs and are always prepared for future changes from the publishers.

Responsive Search Ads should flow seamlessly into any workflow you currently utilize for analyzing ad performance. These ads will be automatically added to any automated reports just like expanded text ads are.

We have also added two new columns to our creative grids, titled Headline Assets and Description Assets. Select these columns in the column selector to see a list of all headlines and description variations for an RSA.

Note that in the Headline column in the grid, you can see a preview of what your RSA might look like in its completed form. This does not necessarily represent all Headline or Description Assets that have been entered. You will simply see the first three Headline Assets in the order they were entered. This is the same behavior as in the publishers.

You will also see the ads’ creative type listed as Responsive Search, and you can filter for Responsive Search in the Creative Type column if you want to see a readout of performance for RSAs only.

If you export your ads grid into a report, you will see separate columns for each Headline and Description asset, with Headline 1 simply called Headline and the remaining Headlines numbered 2 through 15.

How Will I Bulk Create RSAs in MarinOne?

You can create RSAs in bulk in much the same way you do for other ad types in Marin. To specify the creation of an RSA in a bulksheet, you should include the value Responsive Search in the Creative Type column.

You can edit your RSAs in bulk by including the Creative ID column. To find your creative IDs, simply run a report from the main Creatives grid with the relevant columns included.

When building your bulksheet for either creation or editing of RSAs, you can use the following bulk headers:

  • [Headline 1] through [Headline 15]
  • [Description Line 1] through [Description Line 4]  
  • [Headline Pinned to Position 1]
  • [Headline Pinned to Position 2]
  • [Headline Pinned to Position 3]
  • [Description Pinned to Position 1]
  • [Description Pinned to Position 2]

I hope this all eases your mind about the transition from ETAs to RSAs. The idea behind RSAs is basically constant, dynamic AB testing and ad personalization, which sounds great in theory. I expect this shift to lead to improved ad performance and easier management through automation.

The paid search experts at Marin are always eager to help clients, new and old, navigate the ever-changing search landscape. Click here to schedule a demo with us and learn more about what Marin can do for you!

Organic Instagram posts provide your followers with a stream of free content that can help establish and strengthen your brand identity, build your social community, and hopefully, engage customers interested in buying your products.

Of course, the limitations are that your organic content has a limited viewership of your followers, the followers they may share the post with, and people searching for or following your brand or particular hashtags you may have used in your posts.

But one key advantage of organic content is that it can be very insightful into the type of content that resonates with people interested in buying the products you sell. Inevitably, some posts will perform better than others with more likes, more comments, and more shares. So how can you capitalize on those posts to help drive your business?

Using organic content to reach new audiences


Now that you know the content and creative in a post is popular with people interested in your products, why not convert it to a paid ad to expand your reach to new audiences? Instagram allows you to “boost” a post you create on Instagram and turn it into an ad. You’ll be able to choose your advertising goal (more profile visits, website visits or messages), your audience (who you want to reach), your budget (how much you want to spend daily) and the duration (how long you want your ad to run).

Targeting specific audiences is an efficient way to reach people who are likely to purchase from you based on location, interests, and demographics that you define. And because your organic post has proven to be effective in engaging these types of customers, you can avoid using your ad spend on paid ads that may or may not interest your audience.

Automating message boosting with MarinOne


Promoting organic content is a great way to leverage well-performing posts to reach more prospective customers, but tracking your engagement on Instagram can be very time consuming, especially if you are managing multiple Instagram accounts.

MarinOne’s Message Booster for Instagram analyzes the performance and content of organic posts and automatically transforms the best ones into ads. Automating this content promotion and campaign creation can save you hours of manual work.

Just like Instagram, MarinOne lets you set the criteria for your boosts based on engagement, duration, and budget. But with MarinOne’s Rules engine, you’ll be able to create paid ads at scale across multiple clients and accounts.

For example, you may want to boost all posts within the last 24 hours with an engagement rate higher than 5%. You might choose to boost these posts for a duration of three days, and ask MarinOne to pause any boost if the engagement rate drops lower than 2%. You can set your budget to a daily budget per rule, or a fixed budget per post, and then set your bid strategy and optimization goals. Then sit back while MarinOne takes care of the rest.

MarinOne’s advanced automation features are designed to save advertisers time, while driving performance at scale across accounts. Click here for more on Message Booster for Instagram with MarinOne.

We’ve added nine new bidding and setup Insights to help advertisers get the most out of digital marketing campaigns and provide them with the tools needed to quickly implement those recommendations.

Here are the new recommendations:

  • Enhanced CPC Identifies Google campaigns using Marin Bidding or Manual Bidding without Enhanced CPC and allows you to easily enable the Enhanced CPC setting
  • Bid Caps: Identifies keywords, ad groups, product groups, and placements performing above the bid strategy efficiency goal whose bids are limited by the Bid Cap setting. Users can then disable or raise the Bid Cap setting unless there is a specific business case to maintain a maximum bid
  • Bid Floors Identifies keywords, ad groups, product groups, and placements performing below the bid strategy efficiency goal whose bids are artificially raised using the Bid Floor setting. Users can disable the Bid Floor unless there is a specific business case to maintain a minimum bid
  • Keyword Bid Overrides Identifies keywords on Bid Override that are in active Bid Strategies. Users can disable these Bid Overrides unless there is a specific business case for manual bid optimization
  • Bidding Reactivity Identifies Marin Bidding Strategies that are not using the Limit Bid Changes under X% setting. Users can enable the Limit Bid Change setting and set it to 25% for affected folders.
  • Keyword Count Identifies ad groups with more than 100 active keywords. Advertisers should segment keywords into multiple ad groups to improve keyword/ad relevancy
  • Ad Count Identifies ad groups with less than 3 active ads. The publishers recommend maintaining at least 3 active ads in each ad group.
  • Invalid Credentials Identifies publisher accounts that require a password update in Marin.
  • Sync Errors Identifies campaigns that have fallen out of sync with Marin.


All Insights are available under the top-level Insights tab, next to your Home tab. For more details about Marin’s Automated Insights check out our original launch announcement.

What are Automated Insights?


There are a lot of moving parts to a digital marketing campaign. So many that it’s hard for even an experienced marketer to know what they need to do to get the best results from their campaign. Collecting data, recognizing the trends for optimization and other paid search strategy efforts often do not come as quickly as advertisers would like. That’s where we come in.

Marin has been providing account insight to our customers for over 10 years and now we are delivering these powerful, actionable recommendations directly in the MarinOne platform.

Insights are automatic, tailored recommendations that help advertisers get more out of digital marketing campaigns and provide them with the tools needed to quickly implement those recommendations.

Automated Insights in MarinOne are designed to

  • uncover opportunities to reduce wasteful spending
  • capitalize on additional volume in high-performing areas
  • Implement learnings from one channel to another


How Insights Work


Each Marin Insight is a customized, cross-channel recommendation designed to increase your campaign’ performance. Unlike recommendations from the publishers, Marin Insights look across channels to identify the most efficient areas of improvement or to highlight where a learning in one publisher can be implemented in another. We also focus on recommendations that align with your business goals, not just increasing spend.

To help you prioritize your work, Marin Insights are always presented with a corresponding performance change. With this information you can easily tell how your account may change as a result of implementing and insight. These performance forecasts are built by analysing recent performance of campaigns, ads, keywords, and products and benchmarking that against the overall account performance.



If your account is tracking revenue data the forecasts will be reflected in terms of predicted change in Revenue and Spend. If your account does not currently track revenue, the prediction is in terms of Conversions and Spend.

Insights are updated daily based on performance data over the most recent four weeks so you never have to worry about wading through old materials.

What Insights Help You Do


Each Marin Insight is presented along with a downloadable report that enables you to go from insight to action. Each report can be uploaded back into MarinOne to apply the recommendation. This workflow gives you flexibility and the ability to accept or reject each recommendation at the most granular level.

Examples of our Insights Include:

Ad Copy Optimization - Identifies the individual word with the most clicks across an ad group's keyword set and determines if that word is included in the highest-traffic creative.

Ad Optimization - Identifies underperforming ads using the KPI and statistical confidence in your A/B test settings.

Budget Capped Campaigns - Identifies high performing campaigns limited by their daily budget.

Keyword Expansion - Identifies non-exact match search terms performing at a lower cost-per-conversion than their parent campaign based on Google conversion tracking.

Keyword Match Type Expansion- Identifies high performing keywords that do not exist on more specific match types.

Keyword Publisher Expansion - Identifies top-performing keywords that are not being leveraged in Bing.

Negative Keyword Expansion - Identifies non-converting search terms based on Google conversion tracking with a statistically significant amount of clicks.

Single Keyword Ad Groups - Showcases which keywords have significant mobile performance to move each into their own ad group so it can get its own mobile bid.

Top Performing Products - Identifies shopping products performing above average within their product group and should be moved to a dedicated product group for additional control.

Key Benefits:


Highly Qualified Recommendations - Volume and performance criteria result in recommendations that are expected to provide meaningful impact to your bottom-line performance.

Performance Predictions - Incremental spend, conversion, and revenue estimates allow you to prioritize your time on recommendations that will have the most impact.

Platform-Ready Exports - Downloadable reports allow you to review Insights at the most granular level. We've also made it easy to implement the recommended changes using a bulk upload.

Click on the Insights tab in MarinOne to see your personalized recommendations today!

If you aren’t yet a Marin customer, reach out today to learn about everything Marin has to offer.

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