The Value of Targeting, Part 2: When Costs Hide in Plain Sight
Yesterday we looked at how poor targeting can quietly double your cost per customer. Today, let’s look at why most marketers don’t notice it happening.
The tricky thing about targeting is that the damage isn’t obvious at first. Your ads still get clicks. Traffic still flows. Your funnel still “works.” On the surface, nothing appears broken.
But underneath, inefficiency is creeping in.
Think again of fishing with pay-per-click ads. You may still be catching fish every day, so you assume the pond is fine. But if more and more of those fish don’t convert, your profits shrink—even though your activity stays the same.
Most marketers respond by:
  • Increasing ad spend
  • Tweaking headlines endlessly
  • Adding more steps to the funnel
But the real issue isn’t optimization. It’s who is entering the funnel in the first place.
Targeting doesn’t just improve results—it protects you from wasting effort on people who were never going to buy.
Tomorrow, we’ll look at how “more traffic” can actually make things worse.
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Mitchell Labiuk
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The Value of Targeting, Part 2: When Costs Hide in Plain Sight
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