Facebook / instagram ads
- Thread starter swandana
- Start date
Anthony Phillips
Member
I have only so far really focussed on marketing using Adwords as that is my particular marketing background. Whilst I am using Social Rabbit and building on my SEO neither of the latter have produced anything of real value so far.
Adwords is producing sales but the key to producing profit is your cost per acquisition (CPA) or Cost per Sale, which thus far has only resulted in me really breaking even on the sales that I have made.
The issue really is that my products are low sales value without much margin which means profitability is difficult. Plus if your product doesn't really create repeat business and is more of an impulse buy rather than something people will come back for again and again , it means your sale will probably be the only sale you will get from that customer therefore you have a lower Revenue per customer value.
Another issue here is not being able to upsell and cross sell at checkout point and if your average 'basket' sale value is below what is needed to break even, you are at a loss.
For example :
Average Basket Value (Order Sale Value) @ $25.00
Less
Adwords CPA (Advertising cost for 1 sale ) @ $10.00
Product Costs (@50%) @$10.00
Gross Profit $5.00 not including $ to GBP Exchange costs & Card Processing/Paypal Fees
So I have a few options, reduce my CPA (If Possible by using tighter keywords and campaigns) , Increase individual profit margin (may reduce sales volume) and cross sell and upsell to increase the average basket checkout value.
As for Facebook Ad's , in 10 years of PPC never made a sale on FB Ads!
Looking forward to Yaros case study.
Adwords is producing sales but the key to producing profit is your cost per acquisition (CPA) or Cost per Sale, which thus far has only resulted in me really breaking even on the sales that I have made.
The issue really is that my products are low sales value without much margin which means profitability is difficult. Plus if your product doesn't really create repeat business and is more of an impulse buy rather than something people will come back for again and again , it means your sale will probably be the only sale you will get from that customer therefore you have a lower Revenue per customer value.
Another issue here is not being able to upsell and cross sell at checkout point and if your average 'basket' sale value is below what is needed to break even, you are at a loss.
For example :
Average Basket Value (Order Sale Value) @ $25.00
Less
Adwords CPA (Advertising cost for 1 sale ) @ $10.00
Product Costs (@50%) @$10.00
Gross Profit $5.00 not including $ to GBP Exchange costs & Card Processing/Paypal Fees
So I have a few options, reduce my CPA (If Possible by using tighter keywords and campaigns) , Increase individual profit margin (may reduce sales volume) and cross sell and upsell to increase the average basket checkout value.
As for Facebook Ad's , in 10 years of PPC never made a sale on FB Ads!
Looking forward to Yaros case study.
Is the case study ready yet?