Recent Experience with Facebook Advertising
Author: chris | Filed under: Affiliate Marketing
After much consideration, and several weeks of comparing traffic sources, I decided to run a “test campaign” on Facebook. The results were just about what I expected from my first attempt using Facebook advertising on a new site.
Here are the details:
1. I decided to run the campaign with my auto insurance quotes service. While this is a competitive niche, the ability to target specific users allowed me to focus on those who would be most interested in my offer.
2. Although I went back and forth on my daily budget, I set it to $25 and let well enough alone. Since I only planned on running the campaign for two days as an experiment, I didn’t want to get out of control with my spending.
3. I targeted both males and females in 10 states between the age of 18 and 25. Why 10 states? The affiliate program that I run pays more for some states than others. To ensure the highest possible profits, I opted for the highest paying states – each of which pays $13 or more per zip submit and subsequent click.
4. Within a few hours, my budget had been reached and 41 clicks were registered. Now that Facebook had done its part, it was time to see how well the traffic converted. After all, the whole point in buying $25 worth of traffic was to earn more than this in the end.
5. After giving my stats a few hours to update, the results were in: I earned a total of $42 and change from the Facebook traffic. This worked out to a profit of $17. When compared to the amount of money earned by “big time affiliates”, this is nothing. But for a small test with a “difficult to crack” niche, it was quite promising.
Of course, one question remains: would the campaign scale if I decided to spend $100/day or more? If so, and the numbers hold true to those above, a daily budget of $100 should lead to a profit of $68/day.
With such small numbers it is difficult to say if this plan has long term sustainability. When I find out, you guys will be the first ones to know!
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Twitter: @suzannefranco
June 24, 2010 at 3:32 pm #
Hey Jim ~ That’s great news! Are you talking about the ads that show up on the right hand side of the page? So … you willing to help me set one up? LOL I really want to try this but I have no idea what I’m doing. *huGs*
Suzanne Franco´s last blog ..The Good, the Bad … and the Ugly (Not necessarily in that order LOL)
Twitter: @jimvesting
July 5, 2010 at 5:40 pm #
Sorry for the late reply Suzanne- Yep! Those ads along the right-hand side of the page are what I was referring to. I can definitely help you out once school starts up again and I have a bit more time on my hands.
congrats on a successful campaign. now split test. scale. and tweak it. Those are very high margins and a great start
Jordan´s last blog ..CPALead adds Splash Widget and Debit Card
Twitter: @DennisEdell
June 25, 2010 at 1:06 pm #
Just keep reinvesting profit (no more) until it no longer works the way you want.
Dennis Edell | Direct Sales Marketing´s last blog ..Blog Network Almost Ready to Rise – Multiple Posts Coming Here.
Twitter: @freelancema
June 25, 2010 at 10:43 pm #
I tried FB advertising and found it to be a wast of money compared to google adwords.
Twitter: @jcashout
June 27, 2010 at 6:33 am #
Interesting return. Curious to see what the outcomes will be larger scale testing!
And you’re directing this traffic to CPA offers?
Great job Jim.. How much costs this campaign ?
Twitter: @jimvesting
July 5, 2010 at 5:41 pm #
For the purposes of this article, I did two days of $25 testing. Once my schedule opens up again I’m going to scale it up and do some bigger and better things. I’ll be sure to post in here about what I experience.
Twitter: @wagersource
June 27, 2010 at 1:16 pm #
From what I have seen and heard from people doing advertising in Facebok it’s worth it
sports wager´s last blog ..Sportsbook banking
Twitter: @jimvesting
July 5, 2010 at 5:43 pm #
It’s definitely highly-targeted stuff, which is great for conversions… but will also drive the price up a bit higher than many are willing to spend at first. They do have coupons a lot though, which can help new entrants try things out for free
I used to doubt FB ads but your experience says otherwise. Perhaps I should take the jump and see how it goes… Thanks for sharing, Jim.
From what I have seen and heard from people doing advertising in Facebok it’s worth it
Twitter: @investordavid
July 17, 2010 at 11:15 am #
This got me thinking about trying out facebook advertising. Do you always use $25 to test out your ads or does it vary? I use to stay away from doing facebook ads as I thought you generally needed a larger amount of money to test out a campaign.
David Koh´s last blog ..Want To Be A Good Investor Then Learn To Save Money
Twitter: @Biznextdoor
March 15, 2011 at 9:06 pm #
What were the CTRs and CPCs on this campaign?