The 'Black Friday Hangover': Profitability vs Volume

If you are an E-com founder, it is essential to check your profitability metrics from your Black Friday campaigns, not just your revenue. While volume is high, 'Profitability' often drops because the noise level is deafening and ad costs skyrocket.

CPM (Cost Per Mille) is determined by an auction. On Black Friday, every brand in the world is bidding for the same eyeballs. This drives the cost of traffic up by 200-300%. If your conversion rate doesn't also triple, your margins get crushed.

The brands that won this week likely didn't rely on day-of ads to find new customers. They relied on retargeting audiences they built up since August.

Moving forward to Boxing Day, focus your budget on 'Warm' audiences—people who have visited your site or watched your videos in the last 90 days. Leave the cold prospecting for January when CPMs drop.