Day 14: Adwords results
Well the results are in from the initial Profitmart site campaign. Nothing scorching. In fact it’s a little “tepid”. I guess I’m just used to better campaigns.
I messed up and ran the content network for a little while. Which skewed the overall Click Through Rate but only by about .01%.
So what have I learned from this? I learned that it’s going to cost me about 42 cents a click to get into the middle range of ads (ave position 5.6). Now I have enough data to figure out how to be profitable.
Let’s start by taking a look at the competition. Listen carefully.
Out of the nine ads that are showing up for “dog training”, two of them (#5 and #7) are for SitStayFetch. The ad in the #1 position goes to a review site where he reviews a few books with SitStayFetch coming out on top. Pretty common strategy that works well. The ad in #7 position goes straight to the SitStayFetch sales page (through an affiliate link).
Just for fun and comparison lets Google the term “SitStayFetch” directly.
This comes up with a slew of ads as well. It’s probably fair to assume that people are making money on this product. The way to tell for sure would be to check the ads over a period of about two weeks to see which ones stick around. You can then assume that they are either making money or they’re just dumb and soon to be broke (unlikely).
Lets take a look at where the “SitStayFetch” ads are going:
First ad: Goes directly to the SitStayFetch sales page.
Second ad: Goes to a review site comparing dog training ebooks with SitStayFetch as the top choice. (surprise!)
Third ad: Goes directly to the SitStayFetch sales page.
Fourth ad: Goes to a site with a bunch of bonus books if you buy SitStayFetch through them.
Fifth ad: Goes directly to the SitStayFetch sales page.
Sixth ad: Goes to a doggie site that has a very thorough review of SitStayFetch. The ad also offers some free bonuses.
Seventh ad: Ad says that SitStayFetch is a big scam and then the site goes on to recommend it. This is right out of the Day Job Killer strategies.
Eighth ad: Has absolutely nothing to do with SitStayFetch. He won’t last long.
Time to summarize.
From the trial we did yesterday we know the approximate cost of being in the fifth position is $0.42. We can now make an educated guess at how to make this campaign profitable.
Hold onto your brain for a minute. This might hurt a bit.
We can run some numbers from what we know: The cost to be in fifth position and the profit per sale. The main unknown here is the number of clicks required to get one sale. Let’s try a few values to see where it breaks even.
| Cost Per Click | Clicks to get one Sale (est) | Cost | Income | Net | Conv Rate |
| $ 0.4266 | 66 | $27.72 | $28.00 | $ 0.28 | 1.52% |
| $ 0.4233 | 33 | $13.86 | $28.00 | $14.14 | 3.03% |
It’s a reasonable assumption that the conversion rate on going straight to the sales page from 5th position has to be at least 1.52% for that campaign to just break even. That means he’s getting one sale for every 66 clicks on the ad. To make it worthwhile (for me) I would want it to be closer to 3%. That would be one sale for every 33 clicks and net $14 per sale on average.
Now that’s comparing apples to apples. Unfortunately our Profitmart site is a lem orange. We aren’t going to do as well sending them to dog-training.co.nr as we would sending them directly to the sales page. So why don’t I just send them directly to the sales page? That’s not the point of this exercise!
Here’s what we could do to increase the conversion rate for our Profitmart site:
- Create a review page like the one in the first ad. Get a few similar products up there and rate them.
- Add some bonuses for buying the product through our site (and put that in the ad).
- Do one of those “this is a scam” ads and then turn around and recommend the product.
At the end of the day this is probably a better strategy than sending them to the sales page. Especially if we can do a good job pre-selling them. Having a sincere 3rd party recommendation can give someone that extra bit of confidence they need to just buy the product. A lot more work though …
Man that’s a lot for tonight. I’m bagged. This has been a great exercise. I hope you can see now how it’s possible to figure out from a small trial how to make a campaign profitable. Maybe I should write an ebook …
As always - if you like what you’re reading here please check out my main site at
There are lots of free ebooks, unbiased information and a conspicuous absence of affiliate links.
I do highly recommend checking out DealDotCom. That site is really turning into a winner. They have a different internet marketing product for sale every day usually at well below half price. Good stuff too. I bought today’s offering of EasyMemberPro. It’s a $137 membership site script and I paid $68 for it. I’ll probably be using it to set up the membership area at Profitmuse.com.
See ya tomorrow for the halloween episode. It might be a short one as I love halloween.
mike
www.profitmuse.com
:8^)