I want to know from Sellers experience - what is the optimal advertising cost budget (For both Promoted ads and Solo Deal Ads) on a monthly basis vs number of orders one can get.
I am interested in hearing, how different sellers go around optimizing their advertising budgets.
Busy reviewing my ad spend strategy.
Hmmm, over a month and no response. I infer one of two possible situations:
a) nobody knows the answer or,
b) nobody is willing to share the secret. LOL
To work it out for yourself I suggest starting with the concept of Ideal Function. Think of your ad spend process as a machine. Put dollars in, get dollars out. Of course you want some multiple of dollars out to make a profit.
And there are some internal parts of the machine that work better than others. Your job is to test the parts to see which ones work best and build your machine around those. Does that make sense? Pick the best parts, build the best machine.
When I say "parts" I mean things you have control over. For example the type and design of your ad, where you place it, who you place it with, WHEN you place it, how often you place it... anything you can think of that might reasonably affect your your results.
When I say"test" I mean you must be able to track your results from the different parts you are trying. You must test according to a plan. Below is a simple plan called an L4 orthogonal array.
P1 thru P3 represent three parts you may choose to test. Using this plan you are able to test 3 parts at 2 levels each. For example, maybe you want to test 2 different ads, placed with 2 different publishers, on 2 different days. Use the L4 to decide which combinations you need and do ONLY four experimental runs. The results give you enough information to analyze which ad, which publisher and which day produces the best results for the money you spend. You don't need to test one part at a type. You don't need to test all combinations (16 possibilities in this case). Four is all it takes. That's the power of the orthogonal array! The final step is to do a confirmation run to check your results.
Yeah, I left out the details of how to do the analysis. It's a bit too technical to describe here. You might be able to google it or hit me up by email. Hope it helped some.
Thanks this is great