Let’s do numbers The point is this Brunei Email List: an advertising campaign works when it reaches the people it wants to reach (that is, the target ), the ads reach an acceptable CTR (% of clicks on people reached) Brunei Email List and generate a decent conversion rate . But in eCommerce that conversion rate ranges between 1% and 3%, depending on the sector. Let’s imagine that your campaign generates 1,000 clicks and has cost Brunei Email List you € 300, which means a cost per click -CPC- of € 0.30, which is acceptable Brunei Email List depending on the channel (I would accept it in Google Ads but not in Facebook Ads) and of the time of year (for example, at Christmas the CPC rises like foam).
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Assuming your eCommerce website is moderately optimized for conversion. Brunei Email List If the average purchase amount is € 50, you will sell € 500 and think “my online advertising campaign is not working. To sell € 500 I had to spend € 300, with which I have lost money ». But it does Brunei Email List work. All parameters are ok. The problem is, again, budget. The budget / conversion ratio, the CTR and even the CPC do not change in a linear way when you increase Brunei Email List the budget. It is not a rule of three: if with € 300 you get 1,000 clicks, it is very Brunei Email List likely that with € 600 you will get quite a lot more than 2,000 clicks and that you will do it with a lower CPC.
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A larger budget means a Brunei Email List greater reach in number of people, and the more people you reach, the greater the optimization , both the one that the advertising platforms perform automatically with their Brunei Email List algorithms and the one that you can do manually by tracking the results. That is to say, the normal thing is that a campaign of € 600 is much more profitable than one of 300… and Brunei Email List so on as the budget increases. The optimization grows on a logarithmic, non-linear scale. The crossing point of both graphs is not a defined and immutable point for all Brunei Email List campaigns and all sectors. It would be too easy.