Using a Giveaway to launch a site selling physical product

8 replies
Background:

I'm going to be launching a website in the near term selling a physical product. It's a high demand product which I have had pretty decent success in previous selling on eBay in the past.

Phase I is the pre launch sign ups, maybe run for 3-4 weeks. My goal is to build a list of at least 10,000 subscribers and start to engage folks on social platforms.

Phase II is Launch day, I giveaway a coupon, giveaway the actual item (Which is a $200 value, branded item related to the niche) and hopefully get sales

Phase III is maintenence based marketing/advertising and possible running addition giveaways to drive more members to the list.

Originally I set out to advertise on FB pointing at the giveaway form since I can target a specific audience. But according to FB estimator tool (Is it even accurate?) on 50dollars a day with a reach of 3M I'm projected to receive 17-35 clicks.. per day. That's horrible in my opinion.

I'm thinking about going the display advertising route using a media buy company.

In your expertise, what is the best method for this? It seems google/facebook PPC is a waste. What companies are pretty solid. Yes, I have seen:

http://www.warriorforum.com/ad-netwo...c-sources.html

There is plenty of traffic out there in this niche, it's just finding the best source to expedite the lead generating.

My budget for this is $500/month

Thanks a ton.
#giveaway #launch #physical #product #selling #site
  • Profile picture of the author xDennis
    So I just did a little math

    If the CPM is $1 on a targetted site
    The CTR is .02%
    Email Conversion (entry for giveaway) is 20%

    To get 10,000 emails it will take me 25,000,000 impressions or $25k

    In other words, 25,000,000 * .002 (.02%)CTR = 50,000 clicks
    20% of the clicks "Enter to win.." will put me at 10,000

    I'm assuming a .002 CTR is this too low?? My thought is with a giveaway this should be a bit higher.

    Also, I'm going to encourage (but not required to follow FB Terms) shares on FB which may help it go viral a little but not banking on just this
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  • Profile picture of the author xDennis
    I've done some additional math, I'll need a .3333% conversion rate to break even on the first round marketing assuming I can 10% of the email blast to a sale. If I can effectively pay for the marketing month 1, I'm in great shape since I can market to them each month, etc
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    • Profile picture of the author SerpSlayer
      Facebook actually works pretty good for stuff like this, if you can key in on a passionate audience.

      As far as media buying goes, I have been running a similar giveaway type offer the last 6 months using display advertising and my stats have been similar to what you have estimated, except that my cpm cost is less than half.

      Average CPM $.46
      Total Clicks: 64,291
      CTR: .28%
      Average CPC: $.17
      Single Optin Leads: 9,347

      So it seems that display advertising may be a viable option as well.
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      • Profile picture of the author xDennis
        Originally Posted by SerpSlayer View Post

        Facebook actually works pretty good for stuff like this, if you can key in on a passionate audience.

        As far as media buying goes, I have been running a similar giveaway type offer the last 6 months using display advertising and my stats have been similar to what you have estimated, except that my cpm cost is less than half.

        Average CPM $.46
        Total Clicks: 64,291
        CTR: .28%
        Average CPC: $.17
        Single Optin Leads: 9,347

        So it seems that display advertising may be a viable option as well.
        So when I plug your detail into my model and additional assumption of purchase conversions from emails blasts I will do okay.

        This is excellent data you've provided it helps confirm and validate my assumptions.
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  • Profile picture of the author xDennis
    Have you optimized the opt in conversion rate? Have you found 15% on the low side? My assumption was this would be a little higher

    At my current $1 CPM
    And a CTR of .28%

    I need an optin conversion rate 24% to break even on my est revenue projections
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  • Profile picture of the author AffGuides
    A CTR of .02% is really low. Not sure where you got those estimates.

    It's not impossible to get CTRs over 1%. It will take a bit of testing to get that, but its possible. Anywhere around 15 - 20% opt in rates are good, but again, this can be higher or lower depending on niche and just how targeted you can get with Facebook.
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    • Profile picture of the author xDennis
      Originally Posted by AffGuides View Post

      A CTR of .02% is really low. Not sure where you got those estimates.

      It's not impossible to get CTRs over 1%. It will take a bit of testing to get that, but its possible. Anywhere around 15 - 20% opt in rates are good, but again, this can be higher or lower depending on niche and just how targeted you can get with Facebook.

      I read an article that stated CTR's between .02% and .05% were typical so I just conservative.

      Personally I wouldn't build a projection model with 1% since that's 80 percentage pts above .002. Dont get me wrong, when I start "buying data" by running live ads and manage to get a 1% CTR I'll be in heaven!
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  • Profile picture of the author xDennis
    I just read that using FB news feed you can see 1% CTR, but the problem is, it's too slow. Facebook estimated me at 35 clicks per day..itll take forever to build a list with 35 clicks per day lol.

    In your experience are Facebook's estimates usually pretty accurate?


    Here are some benchmarks that you can use based on very broad/aggregated targeting and campaign types. There are outliers well above the "Optimal Range" but most advertisers cannot achieve them due to their various constraints.

    Optimal CTR: 0.11%-0.16%
    Above Avg CTR: 0.07%-0.09%
    Average CTR: 0.04%-0.05%
    Below Avg CTR: 0.02%-0.03%
    Poor CTR: 0.01%

    ***My company is one of the largest and most diverse Facebook Advertising API Agencies. This data is benchmarked across hundreds of client in dozens of countries among various advertising verticals.

    ***UPDATE*** [Dec 2012]

    These stats are for Standard Ads/Like Ads/App Ads/Page Like Sponsored Stories running on right-hand-side only. Any placements in the newsfeed are going to earn 1.0%-7.0% CTR, Mobile Newsfeed CTRs are higher than desktop-only CTRs.

    ***UPDATE*** [April 2014]

    Our average customer today hits 1.8% CTR on Desktop News Feed and 3% on Mobile News Feed.

    Below 1% in the News Feed: Consider going back to the drawing board on your Creative Image.

    Above 2.5% in the News Feed: You're rocking it, keep on keeping on!
    What is the average CTR on Facebook Ads? - Quora



    And another excellent whitepaper:
    http://f.cl.ly/items/2m1y0K2A062x0e2...erformance.pdf
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