Media Buy - scenario

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Hey guys I am trying to get an idea of media buying and is this could work for me:

I have come up with a scenario and was wondering if you guys think this would be realistic.
Supplement offer that pays out = $40
Found demographics of that offer.
Using ad planner and Alexa have matched demographics to website that I want to purchase traffic from.
CPM = $1.00
Have banner ad that receives 1% CTR
Had a landing page + Sales page which traffic is taken to after they click on banner.
the landing page then pre-sells people on the supplement offer and they are taken to the final offer page.
so we buy 100,000 impressions at the cost of $100.
We get a 1% CTR on banner ad and receive total of 1,000 clicks to LP.
With the landing page pre-sell + final offer page we receive 1% CR.

total of 10 sales at $40 payout = $400 Revenue?

Is this possible, thanks.
#ad networks (cpm/cpl, display) #buy #media #scenario
  • Certainly possible, though sounds pretty optimistic. Work hard enough at it and I am sure you will find success. $100 is not enough to properly test a $40 offer however.
    • [1] reply
    • Can you please tell me how this is being optimistic? The $1 com and 1% Ctr and 1% cr seem pretty average. Also if I receive 1,000 clicks paying $100 that seems like a decent amount of clicks to eat the offer.

      Thanks!
      • [1] reply
  • Yes, it is possible.

    But everything is easier and more lucrative when you are on the calculator
    • [1] reply
    • very true
      based on my previous calculations I should be living in my castle in Bavaria by now
  • Thanks guys. More suggestions please
  • I would suggest initially buying the traffic via an exchange if possible.

    Sitescout has availability to most of the inventory that the big guys (Rubicon, Pubmatic, Admeld etc) have available.


    Also - don't worry too much about your metrics, CTR etc etc. However, 1% CTR for a weight loss package is very optimistic.

    The only metrics that matter are eCPM and CPM.

    CPM, as you know, is the price you pay for 1000 views of your ad.
    eCPM is the revenue you get for 1000 views of your ad.

    If eCPM > CPM, then we're in business!

    One of the reasons I make this point, is that a creative (banner, lander etc) with a lower CTR, may actually be more profitable than one with a higher CTR.

    If you're buying CPM, eCPM is the only thing that matters.

    Any questions, let me know.
  • Easier said than done brah

    But, its possible.

    1% CTR on banners is quite high. I think something like 0.1 - 0.5 is more normal, but again, if you keep optimizing then you can def. get 1%.
  • Thanks guys. I have contacted a few copywriters (private) And said they would create a banner at that has a 3% Ctr or my money back. I'm going to look into that.
  • 3% or your money back?

    If that's the case - I would buy 10,000 from them :-)
    • [1] reply
    • Yeah once I get the $ Im going to try him out. But yeah 3% or money back. I just have to make sure he makes it targeted with the offer.
  • 1% CTR is the problem, it's very difficult to get that good of a CTR on a banner.

    Of the time when I've done banners I see a 0.35% CTR on average. Yes there has been some that did way better, but overall I would say that is my average.

    100,000 impressions would get you 350 clicks based on that.

    Depending on your landing page, let's say you get a 30% CTR from your lander to the offer page (that's my current average CTR on my landing pages, so take it with a grain of salt).

    350 clicks to landing page x 30% CTR = 105 clicks to offer

    Assuming a 2.5% conversion rate on the offer page you are looking a 2.6 conversions.

    At $40/conversion you are looking at around $105 revenue.

    That's a total of $5 expected profit.

    Now all that's just based on my stats and what I have personally experienced. Your campaign could go way better or way worse, it really depends on a lot of factors and nobody can say for sure what will happen until you try it.
    • [1] reply

    • Thanks for your help! That gave me just what I needed!
  • Instead of trying to estimate what these numbers will be, jump in and find out. You won't make any money unless you put yourself out there and start doing it
    • [1] reply
    • ^^^ 100 times what he said.

      In this game, it's easy to "count your chickens before they hatch".

      The only way to find out is to do it.

      But 1%CTR on banners is vastly over-optimistic.

      And on the counting chickens point.... It's not profit until it's in your bank account.
  • I just started purchasing banners also. This was really helpful. I just wanted to say thanks to all of the knowledgable people that contributed!
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    Media Buy - scenario

    Hey guys I am trying to get an idea of media buying and is this could work for me: I have come up with a scenario and was wondering if you guys think this would be realistic.