A marketing expert answers a common question about paid ad results by explaining that while specific outcomes can't be guaranteed, they can be forecasted. She then demonstrates a step-by-step calculation on a notepad, using industry averages for CPM, CTR, and CVR to project potential revenue from a set ad spend, and concludes by suggesting how to improve results by optimizing ad creative or website conversion.
Post caption
My most commonly asked question…. What results can I expect from my ads. Remember these are averages and you should be aiming higher. #paidadsexpert #paidadstips #paidadsforshopify #ecommercetips #ecommercehelp #marketingtips #marketingadvice #marketingforbusinesses #marketingagency #marketingstrategies
Transcript
Hey, Maddie. What results can I expect from my paid ads? You should never believe anyone that can tell you they can get you a specific Worst and generate specific results, but we can do forecasting based on averages. Let me show you. No, ads are made up of three things. Your audience size, so this is your CPM, how much does it cost you to reach a thousand people. Your bad quality, so this is your CTR which is how many people click on your ad and visit your website. And then we have our actual sales which is based on conversion rate. No, say for example, we are spending $2,000 a month on ad spend. Within Australia in most niches, the cost to reach a thousand people is $15 Again, this is an average. Have a look at your country and have a look at your niche. For $2,000 we would be able to reach 133,000 people. No, the Tier, the average is around 2%. Again, we don't wanna be basing ourselves around these averages because we wanna be aiming for higher, but it's a great starting point. So from that, we would have 2,660 people click on from our bad to our website. Now, most ecommerce websites sit between that one no 2% conversion rate. Again, we wanna be always working on this. So better say we had a conversion rate of 1.5% that good be 39 sales. So we've got 39 sales tier it by your average order value. Again, we always wanna be working on this, would be $3,900 No from $2,000 we can nearly double our revenue. Again, if this isn't working for you, these figures, we can always improve our ads with our creative or we can improve our website by working on our conversion rate.