The Right Kind of Ad Strategy
When you spend money on ads you want to know that you are making a good investment and that those ads will pay returns. Nobody wants to just throw money away.
Unfortunately, entrepreneurs who are new to advertising strategy usually go about it the wrong way.
The Wrong Way
They typically look at their bank account and budget to decide how much they can afford to spend on ads. Ads can be expensive and they want to spend just enough to focus some attention on their product. This entrepreneur is considering ads as only an expense in their business.
But what if looking at ads from a different angle actually could give you more customers and make sure, that you have to post the "sold-out” sign the next time you run a launch?
The experienced advertiser would go the other way around. Yes, they actually do it backwards. Instead of looking at what they can afford to spend on ads, they look at their goal.
The Right Way
Instead of thinking about ads as an expense the experienced advertiser will think of them as a really powerful asset that will keep earning them money years from now even if they stop running the ads when the launch is finished
To do this, you will need some previous results and statistics. If you use Simplero you will have all the metrics you need!
First of all, you need to know how many products you want to sell or how much money you want to earn. If you're running a standard launch with a simple funnel such as
- Facebook ads that offer a piece of content in exchange for opting in to your list
- An automated email series that offers your product and
- A crazy delicious sales page that sells your product
Then this is what you want to know from your previous launch
- How many people bought your product
- How many signed up to your list from your ads and
- How much money did you spend on your ads
Here’s an example
Let's say that you spent $2,000 to get 2000 people on your list and you ended up selling 20 products (each for $250). Then you know that for every 100 people that sign up to get your advertised content, you will sell one product. You also know that you have spent 1 dollar for each person that opted in to your list.
Let's turn it around. If you want to sell 100 products, that is 5 times as many as last time. So, you need to get 5 times as many people on your list and to do that you will need to spend 5 times as much on your ads. That’s $10,000. You can reasonably predict that if you spend $10,000 on ads you will sell 100 products. And if those products now cost $297, then you will earn $29,700! Subtract your ad costs ($10,000) for a net gain of $19,700. Not bad!
As easy as that, you now know how much to spend on your ads to be able to wave the "sold out” sign.
The Bad News
This is not 100% bulletproof. You have to have a good product, that people will want, and then the stars have to align just right… But this is WAY better than letting your gut feeling decide your ad budget.
The Good News
Small tweaks here and there to your campaign and strategy can make your launch even better than the last time.
Looking for ways to tweak your strategy? The Simplero Community on Facebook is full of helpful and wise business owners and marketers. Many of them would be glad to give you some feedback on your strategy. Join the group here.