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Posted 2 years ago
If you want to buy ads. The first thing you need to keep in mind is knowing your numbers.
The biggest issue with traditional marketing is that they are hard to track and hard to optimize – businesses may spend millions on a TV commercial, newsletter, and flyers.
Still, when clients come, they have no clue what marketing campaign works, and they ended up wasting lots of money on underperforming ads.
The most significant advantage of internet marketing is its trackability- you can install a code on your site, and suddenly, everything becomes transparent.
There are two types of numbers you must keep your eyes on.
The first type of numbers is your ad cost, they are:
Another type of number is your customer value; they are
The key to profit from paid ads is to optimize ad creatives and targeting to get the lowest CPA (cost per accusation) possible and to maximize your service and funnel to get the highest LTV (customer lifetime value) possible
When your LTV > CPA, your business grows, otherwise, you will struggle.
One of the most common methods to optimize your ads is “split testing” -You create multiple ads on each campaign and let the system deliver its impression or traffic evenly to those ads.
Over time, you will notice some ads get more engagement, some ads get more clients, and some bring you more patients.
You then go to turn off the underperforming ads and create more variations to challenge the existing winner.
Over time, your ads will perfume better and better.
Split testing is a robust process since it can help you lower your CPA and get a higher ROI (return on investment) from your ad campaign.
