Home > Technical & Creative Skills >

Conversion Benchmarking: 4% the Magic Number? (13)

08-02-2013 05:55 PM #1 Finch (Moderator)
Conversion Benchmarking: 4% the Magic Number?

If you're testing different offers or landing page variations, it helps to have a benchmark conversion rate in mind.

And by that I mean the percentage of banner clicks that turn in to conversions, not the conversion rate for the offer itself.

I often find that 4% is my magic number.

If I can convert 1 in 25 banner clicks, LP or no LP, I usually make a nice chunk of profit.

4% = Sweet spot, handsome optimised mofo.
3% = Marginal profit
2% = Lots of optimising to do
1% = Dud

This seems to apply across several of the niches that I work in, but particularly in dating.

Despite varying click prices, the overall economics remain the same. 1 conversion from 25 clicks... you've usually hit a sweet spot.

Is this something you guys would agree with from your own campaigns?

I'm guessing it could be slightly lower for the guys doing mobile, or those operating on 'high volume / sacrificed quality' traffic sources.

08-02-2013 08:09 PM #2 vidivo (Member)

Yeah im doing quite a bit of high volume stuff and i see around 2-3 average.. but def can say Im killing it

08-03-2013 08:28 PM #3 _mcr_ (Moderator)

How would you feel about a conversion rate of 25%+ then?



I'm playing a different ball game than most people here, my expertise is in email mainly. The stats above are for major brands too, like American express, AT&T, etc. The payout is low because I pay a high premium to be able to get those advertisers in my emails/newsletters and to not have to worry about running any campaigns, it's all automated. The volume is low right now so the revenue isn't much, but I should have 10x that within a short period of time. I'm ramping up every week.

I'm just waiting until the revenue is significant enough to warrant a success story thread.

08-26-2013 07:04 AM #4 tmcalvin (Member)

Hey Finch, when you're measuring this do you do it really early before any optimization to determine if it's worth chasing or after a little optimization?

I have one camp running about 0.07 but haven't done anything yet to hone it down. According to your method this would be a big dud but I have some promising banners and landers and think if I cut the fat I could maybe make it work.

Would you chase it or go for something that performs better out the gate?

Thanks

04-28-2014 04:42 AM #5 igv2014 (Member)

Hello Finch

How do you keep the conversion rate stable in 4%? Because I tested my lander a lot and got a initial 4% conversion rate on day 1 but it started dropping to 2.5%

Thanks

btw: great quality info on the premium posts

04-28-2014 04:57 PM #6 givizator (AMC Alumnus)

I suppose you are talking of leads conversions ($x payout) and not rev share conversions ($xx to $xxx payout) ?

04-28-2014 06:05 PM #7 richierich (Member)


04-28-2014 07:13 PM #8 Finch (Moderator)

Quote Originally Posted by igv2014 View Post
Hello Finch

How do you keep the conversion rate stable in 4%? Because I tested my lander a lot and got a initial 4% conversion rate on day 1 but it started dropping to 2.5%

Thanks

btw: great quality info on the premium posts
How big was the market you were targeting?

If it's a small market/geo, you can expect an overnight drop based on exposure. The initial 'pop' is difficult to sustain.

You have to keep your ads as fresh as possible, and probably implement some stricter frequency capping if you're seeing those kind of drops.

Quote Originally Posted by givizator View Post
I suppose you are talking of leads conversions ($x payout) and not rev share conversions ($xx to $xxx payout) ?
Yep, leads.

4% is a great target for any dating/adult leads program from what I've seen.

Revshare is a different ballgame.

04-29-2014 01:19 PM #9 dconstrukt (Member)

finch... depends on the payout no?

we're not doing 4% but my golf swing offer is pretty profitable on fb ads so far.

04-29-2014 08:34 PM #10 matuloo (Legendary Moderator)

Quote Originally Posted by Finch View Post
If you're testing different offers or landing page variations, it helps to have a benchmark conversion rate in mind.

And by that I mean the percentage of banner clicks that turn in to conversions, not the conversion rate for the offer itself.

I often find that 4% is my magic number.

If I can convert 1 in 25 banner clicks, LP or no LP, I usually make a nice chunk of profit.

4% = Sweet spot, handsome optimised mofo.
3% = Marginal profit
2% = Lots of optimising to do
1% = Dud

This seems to apply across several of the niches that I work in, but particularly in dating.

Despite varying click prices, the overall economics remain the same. 1 conversion from 25 clicks... you've usually hit a sweet spot.

Is this something you guys would agree with from your own campaigns?

I'm guessing it could be slightly lower for the guys doing mobile, or those operating on 'high volume / sacrificed quality' traffic sources.
I see exactly the same with adult dating, 4% seems to be the point of entry for reasonable profit. I did profit with lower CVR just as I already lost with better CVR than 5% but 4% usually means good things ��

05-02-2014 07:32 PM #11 stackman (Administrator)

I definitely see what you're saying with the 4% rule for dating, but really jumps all over the place depending on the niche/traffic.

The real goal is to CRUSH the optimal %, find an opportunity based on traffic deals, unique angle etc.. and double it!

05-04-2014 02:56 PM #12 givizator (AMC Alumnus)

Assuming you target a NTVA spot with a decent banner with a 1% CTR and 1 lead get you $3.

You need on average 25 clics to get that lead, so 2500 prints of you banner on the NTVA spot.

So, your eCPM on that spot is $1.2

If you buy at an CPM < $1.2, you make money.

Are all of this hypothetically correct for you ?

05-05-2014 01:16 PM #13 caurmen (Administrator)

That math looks correct!

Home > Technical & Creative Skills >