Meta Ads: Building Profitability in Your Meta Ads with Nikki Lindgren, Pennock (episode 240)

by Chloe Thomas

Nikki Lindgren is the founder of Pennock – The Nimble Growth Agency, and a specialist in building growth for 7-figure beauty and lifestyle DTC brands. 

Meta Ads: Building Profitability in Your Meta Ads with Nikki Lindgren, Pennock

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[03:43] Brands prioritize profitability and efficient ad strategies now. 
[09:08] Focus on MER, simplified structures, machine learning. 
[13:17] New assets required based on amount of spend. 
[16:24] Initial clients had own creatives; provided strategy. 
[17:54] Testing lead generation versus direct conversion campaigns. 
[22:42] Insider Tips from Nikki! 

Focus on Profitability Metrics Beyond ROAS 

Brands should not rely on ROAS alone to measure marketing success. Instead, they should consider broader metrics like: 

  • Marketing Efficiency Ratio. This shows how much revenue is generated for every dollar spent on marketing. 
  • Cost of Goods Sold. This helps understand the true profitability of campaigns. 

Using these metrics and leveraging technology for deeper insights can let brands can make more informed decisions about their campaigns. This avoids over-reliance on single metrics and ensures that marketing efforts contribute to business profitability. 

Creative is the Driving Force of Success 

Creative has become a critical element for Meta ad success, as targeting now heavily relies on machine learning. To maximize performance, there’s a need for a steady stream of new, well-designed creative assets. Nikki recommends one new asset per $2,500 spent monthly. Collaboration between agencies and brands is key. Agencies provide strategic guidance and brands supply fresh, authentic creative. Continuous analysis of creative performance is also essential to refine designs and ensure ads remain relevant and profitable. 

Use Lead Generation to Boost Lifetime Value 

To maximize profitability, lead generation campaigns can be a valuable complement to direct conversion efforts. Growing an email list through Meta ads often yields better long-term returns. Nikki suggests testing campaigns that focus on capturing leads over immediate sales. This type of campaigns are particularly effective for products requiring education or nurturing before purchase. By capturing potential customers earlier in their buying journey, brands can use email flows to convert these leads at a higher rate. 

Listen to hear Nikki’s Insider Tips on Meta Ads! 

Interview links 

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