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Marketing Investment Plan Report

Ad Costs Are Rising, Margins Are Shrinking

The Smarter 2025 Marketing Investment Plan for eCommerce Brands & Retailers

Ecommerce brands face a profitability crisis: ad costs are rising, and margins are shrinking. This free report helps build a quarterly investment plan to grow — without wasting budget on costly paid ads.

Authored by

Karthik Kalimuthu

CTO, ConversionBox

Co Authored by

Shawn Post

eCommerce Strategist

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Why is Paid Media Failing eCommerce?

eCommerce marketing isn’t about spending more — it’s about spending smarter. With ad costs climbing and profit margins shrinking, brands need a clear investment plan that prioritizes profitable, scalable channels over expensive, unreliable paid ads.

Breakdown of Current Trends

Ad Costs Are Outpacing Revenue Growth

Meta CPMs up 38% YoY

Google CPC up 27% YoY

TikTok CPAs up 42% YoY (due to saturation)

ROAS Is in Decline

Average Meta ROAS: 1.5x to 2.1x (was 3x+ in 2020)

Google Search ROAS: 2.5x (down from 3.7x)

Privacy, Tracking & Attribution Headaches

Loss of third-party data

Incomplete visibility into which campaigns actually drive sales

Squeezed Margins Mean Less Room for Experimentation

Rising fulfillment & product costs

Higher discounts to drive conversions

Report Highlights

This report breaks down the best-performing channels, smart budget splits, and practical quarterly plans to help you drive sustainable growth — without wasting your budget.

Strategy

Rethink your channel mix for profitability.

Owned Growth

Double down on high-ROI channels.

On-Site Optimization

Make your website work harder.

Top ROI Delivering Marketing Channels

What Makes the Report Unique?

Insights from 400+ eCommerce brands & retailers

Created by ConversionBox – Experts in Conversion Optimization

Trusted by brands across Fashion, Beauty, Home Goods & Electronics

Trusted by the world’s leading brands and retailers

Report Highlights

This report goes beyond just outlining trends — it’s your guide to actionable strategies for boosting profitability in a world of rising costs. We’ll show you how successful brands are diversifying their marketing spend and prioritizing sustainable, high-ROI channels. From rethinking your media mix to optimizing customer retention, discover how to build a marketing strategy that drives long-term growth without relying on costly ads.

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