Mistakes to avoid when calculating LTV

30 May 2016 | Vlad Mehakovic

1. 4 mistakes to avoid when calculating LTV

Data informed

Using revenue instead of profits
Choosing an unrealistic customer lifetime
Representing all customers with one LTV
Forgetting to recalculate LTV

2. Is the online advertising bubble finally starting to pop?

Channels

We are living through the latest stages of the online advertising bubble, as available high-quality ad space is shrinking, leading to a decline ad space quality, and a decline of ad efficiency. Awareness for fraud is growing, and soon, clients will cut their online ad spending, and demand higher accountability. This will destroy the high-margin market of automated reselling worthless ad space, and will force advertisers to focus only on prime publishers, with expensive ad space.

3. How an ad campaign made lesbians fall in love with Subaru

Campagin

Subaru's search for niche groups in the 1990's led led them to the discovery that lesbians loved their cars. Lesbians liked their dependability and size, and even the name “Subaru.” They were four times more likely than the average consumer to buy a Subaru.

4. Rebranding fails

Brand

Instagram caught a lot of flak for its rebranding last week, but it’s only the most recent in a string of companies that have gone through brand makeovers. Rebranding efforts sometimes read like “The Emperor’s New Clothes.” The brand team rhapsodizes about all that went into it, without seeming to realize when it misses the basics.

Also read Instagram's new logo is a travesty. Can we change it back? Please?

5. The emotional combinations that make stories go viral

Insight

Researchers looked at 65,000 articles on two news sites where readers had assigned emotional scores to the articles. They then looked for patterns among the viral stories, measuring virality by the number of comments and social shares each article received. A clear connection appeared between instances of viral content and certain configurations of valence, arousal, and dominance.

6. The death of the web design agency

Trends

The era of web design agencies showing up, building a site and leaving looks to be drawing to a close, but the signs point to it being replaced by something better.

7. When sensory marketing works and when it backfires

Customer obsessed

Use the combined potential of sight, touch, sound, taste, and smell to present your product in a way that reinforces your brand’s image — not in a way that violates it.

8. Our bias for paid marketing

Insight

jIs a physical therapist with a professional logo better than one with a handmade sign?
Are you more likely to stay at a hotel that you've heard of as opposed to an unknown one?
Do you believe that companies that rank higher in search results are better than the ones a few pages later?

9. Why big digital video and TV networks are increasingly becoming production partners

When tech and data can be combined with marketing initiatives, publishing and production, you can create real juggernauts. But that's a lot of stakeholders to bring around a table and play nice together.

10. Augur

Tool of the week

A set of APIs and tools that instantly enables businesses to recognise devices, and consumers across devices.