Why we love it
Brands most positioned to succeed in 21 and beyond are the ones not ONLY measuring AOV & LTV but modeling those numbers into their media buying efforts.
Both rising platform costs & iOS14.5 tracking loss are the main culprits. If you're still holding ROAS as the holy grain KPI you're probably facing an unfavorable numbers and it's only going to get worse.
This is a shift we've been aware of for a while.
The game is changing for brands, what worked once isn't going to work very far into the future. The idea that it's all about ROAS using the previous frameworks is going to die out.
Modeling around AOV and LTV is impossible though under the current environment.
Too many brands are constantly promoting sales, offers, bundles, deals, etc.
With all these biases that are included in a brands normal business, clean data to use to model against ads is very difficult to pull off.
Do you need to use other sources to make things work, yes, absolutely.
What we'd love to know more about
Should they be AOV and LTV? We're not sold on that yet.
Those are two company journey focused metrics.
The customer doesn't care about either of them.