Is expecting a return on investment (ROI) on advertising on either FB or Google unrealistic?
I'm selling a micro transaction ($2-5) service - You upload your photo, and the service airbrushes your photo ($2 retail for 24 hour turn around) or ($5 retail for express service - 1 hour or less). I ran a couple of trial campaigns on FB and the acquisition cost would be astronomical (Click-through-rate is well under 1%). It's $3 bucks per click! There's no guarantee that they'll even try the service. I could pay up to $1 to acquire a customer (not a lead) and still be profitable on the first transaction.
Is not banking on lifetime cost of a customer short sighted, and therefore I should pay more?
Should I just focus on viral, or organic marketing...? Also, any insight between Pay Per Click (PPC) or Pay per 1000 impressions?
Any positive (solutions-based) insight with experience would be a great help!
Luke
P.S. - driving traffic has to be the hardest thing to do in e-commerce!
I'm selling a micro transaction ($2-5) service - You upload your photo, and the service airbrushes your photo ($2 retail for 24 hour turn around) or ($5 retail for express service - 1 hour or less). I ran a couple of trial campaigns on FB and the acquisition cost would be astronomical (Click-through-rate is well under 1%). It's $3 bucks per click! There's no guarantee that they'll even try the service. I could pay up to $1 to acquire a customer (not a lead) and still be profitable on the first transaction.
Is not banking on lifetime cost of a customer short sighted, and therefore I should pay more?
Should I just focus on viral, or organic marketing...? Also, any insight between Pay Per Click (PPC) or Pay per 1000 impressions?
Any positive (solutions-based) insight with experience would be a great help!
Luke
P.S. - driving traffic has to be the hardest thing to do in e-commerce!
Dislike ads? Remove them and support the forum:
Subscribe to Fastlane Insiders.
