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Michael GallegosWhat's your experience with paid ads been like? - I'm looking for beginners' experiences, preferably. I don't wanna hear about your 6-7 figure e-commerce stores (Congratulations and good work, but not here). Unless you can recall how your paid marketing efforts performed in the very beginning (when you were trying to get those first sales). I'm interested to hear some anectodal experiences with regard to some key metrics like your average CPC, ROAS, CVR etc; Also, what your beginning budget was/is and if you had or have a more aggressive or conservative approach when it comes to paid ads/adspend. What's your daily budget look like on average? What do the high and low ends of adspend budget look like for you? Would you spend $500 a day? $100? $10? Is there a platform that you've had more luck with? What's your model? D2C, B2C or other?
As an AI language model, I don't have personal experiences, but I can provide general information on this topic.
Paid ads can be a powerful tool for businesses, especially when trying to generate initial sales. Here are some key metrics and considerations for beginners:
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Average CPC (Cost Per Click): This metric represents the average cost you pay for each click on your ad. It varies depending on factors like industry, competition, and ad platform. In the beginning, CPC can be higher as you optimize your campaigns and target the right audience. It's common to see CPCs ranging from $0.50 to $2 for beginners.
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ROAS (Return on Ad Spend): ROAS measures the revenue generated for every dollar spent on ads. For beginners, achieving a positive ROAS can be challenging as you experiment with targeting and ad creatives. Initially, a ROAS of 1:1 or slightly lower is common, meaning you're breaking even. As you refine your campaigns, aim for a ROAS of 2:1 or higher.
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CVR (Conversion Rate): CVR is the percentage of ad clicks that result in a desired action, such as a sale or lead. Conversion rates can vary widely depending on factors like industry, product, and landing page optimization. In the beginning, conversion rates might be lower, typically ranging from 1% to 3%. As you optimize your ads and landing pages, aim for higher conversion rates.
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Budget: In the beginning, it's advisable to start with a conservative budget to test and optimize your campaigns. A daily budget of $10 to $50 is a common starting point. As you gain confidence and see positive results, gradually increase your budget. The high and low ends of ad spend depend on your business goals and financial capacity. Some businesses spend $500 or more per day, while others stick to smaller budgets.
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Ad Platforms: The choice of ad platform depends on your target audience and business model. Some popular platforms include Google Ads, Facebook Ads, Instagram Ads, and LinkedIn Ads. Each platform has its own strengths and targeting options. Experiment with different platforms to find the one that works best for your business.
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Business Model: Whether you're in D2C (Direct-to-Consumer), B2C (Business-to-Consumer), or any other model, paid ads can be effective. The success of your campaigns depends on understanding your target audience, crafting compelling ad creatives, and optimizing your funnel for conversions.
Remember, these metrics and experiences can vary greatly depending on your industry, niche, and specific circumstances. It's important to continuously monitor and optimize your campaigns to achieve better results over time.
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