How to understand that advertising will not give results?
Posted: Mon Jan 20, 2025 10:39 am
Let's calculate the acceptable cost It would be good if you already have statistics on the profitability of your business before the analysis. For an approximate calculation you need to know: How much do you earn from one sale in net profit (for example, 1,000 rubles). What percentage of requests are closed with a sale (let's say 5 out of 10).
How many hits do you get from 100 clicks on the site (let's imagine 10). malaysia customer email list I have intentionally simplified the scheme by excluding repeat purchases, additional sales, and so on. Your primary task is to understand in a couple of minutes how much you can afford to pay for one click to the site in order to at least break even. Let's take the numbers from the example above.
Out of 100 clicks on the site, 5 clients were received, each of which brought 1,000 rubles. 100 clicks = 5,000 rubles of net profit. Any advertising channel where the click costs more than 50 rubles (5,000 divided by 100) will most likely be unprofitable. In order to earn at least 2,500 rubles from five clients, a click on an advertisement should not cost more than 25 rubles.
How many hits do you get from 100 clicks on the site (let's imagine 10). malaysia customer email list I have intentionally simplified the scheme by excluding repeat purchases, additional sales, and so on. Your primary task is to understand in a couple of minutes how much you can afford to pay for one click to the site in order to at least break even. Let's take the numbers from the example above.
Out of 100 clicks on the site, 5 clients were received, each of which brought 1,000 rubles. 100 clicks = 5,000 rubles of net profit. Any advertising channel where the click costs more than 50 rubles (5,000 divided by 100) will most likely be unprofitable. In order to earn at least 2,500 rubles from five clients, a click on an advertisement should not cost more than 25 rubles.