Just sitting here and watching a video, and I thought about something. Would it be better to have 100 conversions with 50% ROI, or 50 conversions with 100% ROI if they are for the same amount as an example? Hope I said that right.
Let's break it in numbers:
same amount = same traffic amount/same cost = 100$
a conv=2$
100 conv = 200$ => 100% ROI
50 conv = 100$ => breakeven
or i miss something?
or you are referring to lets say SOI vs DOI?
SOI conv = 1.5$*100 = 150$ => 50% ROI
DOI conv = 4$*50 = 200$ => 100% ROI
I'd say start with SOI to identify the winning combos (you have more data to make decisions) and switch to DOI after that.
PS.
better to have 100000 conversion with 10% ROI (not a personal example lol)
It's not making sense on paper now that I'm doing the math, but basically what I'm asking is is it better to have an ROI with more money and less conversions, or more conversions with less money? I know it's based on the offer, but looking at campaigns, what usually works better in the long run? I guess you pretty much answered it at the end though, I think.
you're looking at it wrong. ROI it's just a performance metric - go for the $$$ ie the profits. You will not put the Nr of conv or some % in your pocket , you'll put the money.
Sounds about right, appreciate it.
Focus on profit and more conversions.
lets say your profit is $100 in both scenarios. I'd take the 100 conversions instead of the 50, because its more data and more statistical significance. So even though your profit is $100 in both scenarios, the value of your data increases when you have more conversions, which means you have more to work with when it comes to optimization for future profits (there's your "in the long run").