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The Math for Running Ads for your Site Instead of SEO

Posted on July 10, 2021July 10, 2021 By Rajesh Rajavel No Comments on The Math for Running Ads for your Site Instead of SEO

Can I ask you a question, are you good at math?

Well, I don’t know about you, but I have a confession to make.

I am not good at math.

That’s why I hate that stereotype that all Asians are good at math because the first time I took calculus, I got a C and my parents knew what’s my current skill set.

OK, that’s a story for another time.

But seriously, when I was taking different classes in school, math, history, English, science, and so on, I notice that I did the best in classes where the teacher was able to take something complicated and make it simple.

Do you agree with me when I say that if a student fails, it’s not the student’s fault, but the teacher’s fault?

A teacher’s job is to take something complicated and explain it in a simple way that anyone could understand.

That’s why I didn’t like my calculus teacher.

And from what we covered in the last article, you now know why I also don’t like Facebook and Google because they didn’t bother to simplify things for you.

That’s the bad news.

But the good news is you don’t need to be good at math to be successful in running ad what you need is someone to simplify the math of running ads to you.

So let’s do that right now.

YouTube Ads

Here is the main strategy of running YouTube ads.

In its simplest form, you start with the ad, and the only goal of this ad is to get someone to click on it.

Once they click, they arrive on your landing page.

And the only goal of the landing page is to convert this visitor by asking them either for their email to sign up to a webinar or asking for the direct sale.

Where you may have noticed is that as you go down the list, it gets harder and harder to convert visitors asking for their email in exchange for a free e-book.

A free guide or a lead magnet is the easiest for someone to do.

But signing up for a webinar takes more of a commitment, many people will not sign up and sit through your one-hour training, even if it was free.

And now we get to the direct sale, which is by far the hardest thing for any visitor to do.

Keep in mind, they just saw your ad from YouTube.

They don’t know you, and out of nowhere, you are already asking them for money.

Most were hit the back button and returned back to YouTube.

You have just lost a conversion opportunity.

I will, of course, speak more about sales strategy in future articles.

But just bear in mind this is the general workflow of running paid ads online.

And since this content is mainly about running YouTube ads, I will spend the majority of the content talking about this section, getting your ads up and running, and getting people to click on it.

What happens afterward is no longer on the YouTube platform.

It’s on your landing page.

And how well you convert these visitors into customers is directly related to your landing pages, appeal your copywriting, storytelling ability, and your offer.

Now, let’s talk about the concept of ad spending so that you have an idea of the amount of money you will be spending on YouTube ads and a realistic return on investment you could expect.

We all heard of the one dollar spent, two dollars earned go right.

If you put one dollar into a machine and got two dollars out, you would do that all day long.

Right.

And that’s what advertising is all about.

For YouTube advertising.

You are charged for views and clicks.

Here is an example.

On average, you will be spending about ten cents per view or click.

So if you got one thousand views on your ad and you paid ten cents per view, running the ad would have cost you one hundred dollars.

Let’s say on average, 20 percent of the people who saw your ad actually clicked on it.

Twenty percent of one thousand is two hundred.

So two hundred people landed on your website.

And if you were giving away something for free, like a free e-book in exchange for an email address, you would have a high conversion rate.

But let’s be conservative here and say that of the two hundred people who landed on your website, only 50 percent converted and gave you their email address.

That’s one hundred people.

Let’s say the product that you are selling is priced at one hundred dollars.

You sent a couple of follow-up emails to your email list promoting that offer.

And on average, about two percent of people will buy.

Two percent of one hundred people is two people.

There you have it.

Simple math.

You spend one hundred dollars in ads and made two hundred dollars, one dollar in two dollars out.

You now have a profitable ad campaign and you will run it all day long.

Now, here’s the catch.

The catch that Facebook and Google ads didn’t tell you.

This ad campaign example you see in front of you is making you money, but you can’t imagine how many things could go wrong if you were not careful.

Right.

You could have a High view cost.

If your video ad wasn’t attractive enough, you could have a low click-through rate.

If your video ad didn’t have a compelling call to action, you could have low website conversion if your website didn’t reflect what your ad promised.

Just one of those three little mistakes can cause your entire campaign to break down and lose your money.

And if you lost enough money without understanding why you give up, my goal in this content is to show you how to get more views for less cost, more people clicking on your ad, and more people converting on your landing page because these are the things that we have control over.

We can improve upon it.

So much that you could get two dollars, three dollars, or four dollars back for every one dollar of ad spent.

That is what Facebook and Google should have told you the moment you told them that you wanted to run ads on their platform.

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