Rising costs in Q4 and what to do

We’re getting deeper into Q4.

Just a reminder that this is the most lucrative time of the year for eCom brands.

Consumers are in buying mode.

Everyone is hunting for shopping deals.

Brands often make around 40-50% of their annual revenue during this period.

I’ve seen companies make 10x the sales compared to other months.

It’s a season where you can scale to new heights.

But it’s not all smooth sailing.

Every brand knows how profitable Q4 can be.

And they all want a slice of the pie.

As competition heats up, advertising costs will rise.

CPCs and CPMs will go up as brands pour more money into Google Ads.

Many brands see this and start getting worried.

They fear that higher ad spend will eat into their profit margins.

It’s a valid concern.

But they’re missing the full story.

While you can’t afford such a high cost at other times of the year, Q4 is different.

Because if your ads and strategy are optimized, your ROAS increases alongside those costs.

Don’t panic if you see the numbers go up.

It’s completely normal.

Understand that higher costs don’t mean lower profits.

Costs rise, but so do buying intent and conversion rates.

As you head into the peak days of Q4, stay focused on what’s working and double down on it.

Now isn’t the time to experiment with wild new ideas.

Stick to your proven strategies and optimize around them.

Test creatives, offers and messaging early, so you’re not scrambling when things heat up.

Keep a close eye on your metrics.

And don’t be afraid to increase spend.

As long as you’re profitable, higher costs won’t be a problem.

Jackson

Founder and CEO of Echelonn.

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