Transform Communications Projects From a Cost to Cashflow
You’ve likely had some great experiences working on creative communications projects that showcase how your work makes life better, easier, or more enjoyable for your clients. These projects are an excellent way to challenge assumptions and refocus your story. But let’s face it—not all of them are created equal.
How many of you have poured significant resources into videos, paid ads, social media, and other marcom efforts, only to see them fall flat?
Traditional approaches to creative communications work often assume the results will “speak for themselves.” But in today’s business landscape, that mindset no longer holds up. The expectation has shifted: every creative project must deliver measurable business value.
The good news? Frameworks like Unit Economics help us reframe marcom from a cost center to a revenue-generating tool. By leveraging metrics like LTV, CAC, and ROAS, businesses can connect storytelling with real, measurable growth. This isn’t just about doing things better—it’s about transforming how we think about storytelling itself.
Metrics That Actually Matter
For investments in strategic communications to make an impact, measurement needs to go beyond surface-level engagement. Likes and clicks might be nice to see, but they don’t pay the bills. The real indicators of business growth and effective communications are metrics like:
APV (Average Purchase Value): How much does a customer spend per transaction? In high-value industries, APV typically ranges from $3,000 to $10,000+.
PF (Purchase Frequency): How often do customers buy? Most B2B clients purchase 1–4 times per year, depending on contract length.
LTV (Customer Lifetime Value): Total revenue from a customer over time, often exceeding $25,000 to $100,000+ in high-value industries.
CAC (Customer Acquisition Cost): Cost of acquiring a new customer, typically $2,000–$5,000 for high-value contracts.
LTV:CAC Ratio: The clearest indicator of ROI. A healthy ratio starts at 1:3, with 1:5 or higher being exceptional.
ROAS (Return on Ad Spend): Revenue generated per dollar spent on ads. A strong ROAS starts at 4:1; for high-value contracts, 8:1 is the gold standard.
These metrics provide the blueprint for determining whether the work you commission is a cost or an investment.
Applying the Framework
Let’s say you’re investing $120,000 in a strategic brand video. What does success look like using these metrics?
APV: The video generates 50 customers, each spending $20,000 per transaction, resulting in $1,000,000 in revenue.
PF: These customers purchase once a year, driving steady revenue.
LTV: Over three years, each customer’s total value grows to $60,000, resulting in $3,000,000 in total revenue.
CAC: With a total spend of $200,000 (production + promotion), the CAC per customer is $4,000.
LTV:CAC Ratio: A strong 1:15, which exceeds the general rule of 1:3 for most businesses. While high-value industries like luxury goods or enterprise solutions might aim for 1:5 or higher, this example highlights exceptional returns.
ROAS: If $80,000 is spent on ad campaigns generating $1,000,000, the ROAS is 12.5:1—indicating efficient ad spend.
These metrics provide a realistic and achievable example of how creativity and business strategy, when aligned, can transform ambitious investments into long-term growth.
In the Spirit of Entrepreneurship
Great businesses aren’t built by luck or guesswork. They’re built by people willing to solve hard problems and take calculated risks. The same goes for the partnership between creatives and business leaders. It’s not just about brainstorming cool ideas and hitting benchmarks. Using tools like Unit Economics to measure and refine your work is valuable—just don’t let the metrics become the goal. The real win is in delivering undeniable value, and the numbers will follow.
Get in touch to explore how you can apply Unit Economics to your next creative project.