7 ms·

Signed up to try it as an advertiser. $300 minimum spend made me reconsider.

by bemmu 15y ago

kposehn 15y ago
You'll find this minimum spend, or minimum deposit, to be typical in advertising outside of Google. These minimums are often in place to make sure you spend enough - and get enough clicks, to have statistically significant data in order to make a decision. At a $3 CPC that would give you 100 clicks, about the minimum you would need to know if you even moved the needle. In general, when testing a platform or medium you need to dedicate $1-3k to testing. With an email distribution, you often need to push even more. If you stop running your ads before you have enough data to make a decision, you will miss out on most opportunities. For example, I ran a campaign on one of the major RTB platforms about 2 months ago with a $500 minimum deposit. The campaign got about 650 clicks at a $0.94 CPC costing me $611 in one day. I grossed $434 in total, for a $177 loss. However, this told me something: this campaign could be a winner eventually. I kept at it, capping my spend at $1k/day. Within 5 days I was spending ~$900 and grossing ~$2k+. The campaign ran for about 6 more days before the offer I was running expired (limited time deal with the client). Basic stats were this: $19,434 revenue ($10,340) spend --------------- $9,094 profit If I had paused out the gate I wouldn't have found the sites and ad creative that succeeded. This is typical in online advertising and why very few players manage to stay in the game: you have to have staying power and the will to keep at it, not to mention the credit. Be careful when dismissing that minimum spend - if you aren't willing to test, you will rarely ever find the success. _Note: I'm not some big player in this industry, but I have found my methods and have a better ROI than most, allowing me to compete where others often can't. Yay :)_
- ryanwaggoner 15y ago
  I would love to chat about this if you could spare me a few minutes. Can you email me at ryan@dailypath.com?
hippo33 15y ago
yeah -- we actually started without a minimum and it was a disaster for everyone. advertisers would try very small amounts $20 or $50, which to kposehn's point, you need a good sample size to know if the channel is valuable to you, and if you don't get that, then it's just a waste of $20 or $50. when you take out a campaign with LaunchBit, you're not just getting your ad in one newsletter. we get you impressions in multiple newsletters. so, if you're just trying $20, then effectively, we're trying your campaign in just a couple of newsletters, which is just kinda a crapshoot if it works. in order to know if this channel really works for you, we need our platform to get you in a lot of newsletters and adjust from there based on what's working and what's not.

Signed up to try it as an advertiser. $300 minimum spend made me reconsider.

by bemmu 15y ago

Signed up to try it as an advertiser. $300 minimum spend made me reconsider.

You'll find this minimum spend, or minimum deposit, to be typical in advertising outside of Google. These minimums are often in place to make sure you spend enough - and get enough clicks, to have statistically significant data in order to make a decision. At a $3 CPC that would give you 100 clicks, about the minimum you would need to know if you even moved the needle. In general, when testing a platform or medium you need to dedicate $1-3k to testing. With an email distribution, you often need to push even more. If you stop running your ads before you have enough data to make a decision, you will miss out on most opportunities. For example, I ran a campaign on one of the major RTB platforms about 2 months ago with a $500 minimum deposit. The campaign got about 650 clicks at a $0.94 CPC costing me $611 in one day. I grossed $434 in total, for a $177 loss. However, this told me something: this campaign could be a winner eventually. I kept at it, capping my spend at $1k/day. Within 5 days I was spending ~$900 and grossing ~$2k+. The campaign ran for about 6 more days before the offer I was running expired (limited time deal with the client). Basic stats were this: $19,434 revenue ($10,340) spend --------------- $9,094 profit If I had paused out the gate I wouldn't have found the sites and ad creative that succeeded. This is typical in online advertising and why very few players manage to stay in the game: you have to have staying power and the will to keep at it, not to mention the credit. Be careful when dismissing that minimum spend - if you aren't willing to test, you will rarely ever find the success. _Note: I'm not some big player in this industry, but I have found my methods and have a better ROI than most, allowing me to compete where others often can't. Yay :)_

ryanwaggoner 15y ago
I would love to chat about this if you could spare me a few minutes. Can you email me at ryan@dailypath.com?

hippo33 15y ago

yeah -- we actually started without a minimum and it was a disaster for everyone. advertisers would try very small amounts $20 or $50, which to kposehn's point, you need a good sample size to know if the channel is valuable to you, and if you don't get that, then it's just a waste of $20 or $50. when you take out a campaign with LaunchBit, you're not just getting your ad in one newsletter. we get you impressions in multiple newsletters. so, if you're just trying $20, then effectively, we're trying your campaign in just a couple of newsletters, which is just kinda a crapshoot if it works. in order to know if this channel really works for you, we need our platform to get you in a lot of newsletters and adjust from there based on what's working and what's not.