Budgeting for a Digital Marketing campaign to achieve sales

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We are planning to run a digital campaign to improve the sales of our products from the website. For every 1000 visitors, only 20 people make a purchase through the website. Now, how much would we be needing to spend to achieve a sale of Rs. 1000K.
#achieve #budgeting #campaign #digital #marketing #sales
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  • Profile picture of the author siddharth111
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    • Profile picture of the author Pranav Aditya
      Hey Siddharth,
      Thanks for the response.

      Here, I'd like to understand the parameter to decide the advertising cost for a digital campaign. Also, I don't want to limit the marketing channel only to Google. I'd really appreciate if you'd help me with the formula to decide the advertising cost.
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  • Profile picture of the author Afshan Bashir
    Can anyone answer this question? I'm also looking help on this matter.
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  • Profile picture of the author Frank Donovan
    Originally Posted by Pranav Aditya View Post

    We are planning to run a digital campaign to improve the sales of our products from the website. For every 1000 visitors, only 20 people make a purchase through the website. Now, how much would we be needing to spend to achieve a sale of Rs. 1000K.

    Here, I'd like to understand the parameter to decide the advertising cost for a digital campaign. Also, I don't want to limit the marketing channel only to Google. I'd really appreciate if you'd help me with the formula to decide the advertising cost.
    Too many unknown factors here for any accurate guidelines. For starters, where's your current traffic coming from? If it's all via search engines, that 2% conversion is about average, depending on the nature of the product, but it could also mean you need to spruce up your keywords and offer page(s). If any of that traffic is coming from, say, a newsletter or email marketing campaign, that conversion rate is poor.

    Optimizing your traffic and conversion ratio is one factor in improving the effectiveness of a marketing campaign, but when budgeting for paid advertising, you need to know how much profit you stand to make from each click-through. What's your net profit margin on sales after allowing for costs of manufacture, sourcing, delivery etc.? What's the likely lifetime value to your business of a typical new customer? How many sales would you need to make to pay for an ad spend of $xx?

    Once you have a handle on these figures, you can test various ad/offer combinations until you come up with a formula that works for you.
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  • Profile picture of the author DABK
    What will the conversion rate of your ads be?


    If you need 1000 visitors to make 20 sales, how many people need to see your ad for you to get 1000 visitors?


    The only way to know is to actually run ads and track things.


    If I tell you that my ads convert at a rate of X%, it means nothing in your world, you're not me, you're not selling what I'm selling to the people I am selling.


    Run an ad or two for a while (to get enough numbers to draw conclusions), then draw conclusions.


    And always improve points of conversions.


    Originally Posted by Pranav Aditya View Post

    We are planning to run a digital campaign to improve the sales of our products from the website. For every 1000 visitors, only 20 people make a purchase through the website. Now, how much would we be needing to spend to achieve a sale of Rs. 1000K.
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    • Profile picture of the author Reddevil007
      Originally Posted by DABK View Post

      What will the conversion rate of your ads be?


      If you need 1000 visitors to make 20 sales, how many people need to see your ad for you to get 1000 visitors?


      The only way to know is to actually run ads and track things.


      If I tell you that my ads convert at a rate of X%, it means nothing in your world, you're not me, you're not selling what I'm selling to the people I am selling.


      Run an ad or two for a while (to get enough numbers to draw conclusions), then draw conclusions.


      And always improve points of conversions.

      Perfectly summed up my friend
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      • Profile picture of the author mkmckinn
        Originally Posted by Reddevil007 View Post

        Perfectly summed up my friend
        Agreed 100%
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