Quantile Capital is a mature-stage asset management business in UK. The CMO has £117 M of annual acquisition budget and has been asked to justify next year's plan.
Last year's spend and results:
| Channel | Spend | New customers | Cost per acquisition |
|---|---|---|---|
| Paid search — non-brand | £51 M | 2,969 | £17178 |
| Paid search — brand | £9 M | 3,146 | £2861 |
| Paid social | £36 M | 1,766 | £20385 |
| Affiliates & retargeting | £21 M | 1,000 | £21000 |
Unit economics:
The board has asked for a 34% increase in new customers next year without an increase in budget. The CMO's instinct is to move money into brand search, which shows by far the lowest cost per acquisition.
| spend | channel | new customers |
|---|---|---|
| 51 |
| Paid search — non-brand |
| 2969 |
| 9 | Paid search — brand | 3146 |
| 36 | Paid social | 1766 |
| 21 | Affiliates & retargeting | 1000 |
Recommend an allocation. Your answer should provide:
State any assumptions you make.
100 points, 60% to pass.
LTV and payback; per-channel CAC; incrementality of brand and retargeting; test-and-scale allocation