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minimum budget for testing campagins (2)


12-03-2016 10:51 AM #1 duaalem (Member)
minimum budget for testing campagins

Hi guys,

I want to ask what is the minimum budget should I put to test the campaign in order to know if it is working or no?!
specially I ask about email submit campaigns with payout from $1.4 - $2 using & using pop ads with cost $0.002-$0.005 CPM.

Thank you


12-04-2016 10:53 AM #2 matuloo (Legendary Moderator)

To test anything, you should spend 2-3 times the offer payout. This is for "1 combination" so let's say 1 banner, 1LP, 1 placement ... in case you are testing multiple LPs for example, you need to multiple the budget too. And since you pretty much never run on just 1 placement, you need to multiply this further.

Now, to see if an offer/campaign has potential, you don't really need to spend 2-3x the payout on ALL placements, since there will be 100-1000s of them.

The final budget depends on the initial performance. Let's say you spend $20 on this and you don't get a single conversion - this means, something is wrong, you need to pause and look for the reason. It can be the offer indeed, but it can also be poor LP or a few large BOT placements that ate your budget. When I'm testing something new, but with already proven creatives, I would cut the offer after $15-$20 without a conversion for sure (with the payout you mentioned).

A completely different situation is when you are getting conversions - now it depends on how much there is to optimize. The fact that you are getting conversions means, that the offer works to some extent, and better LPs and placements optimization could get it to profit. However, if even after several LP changes and a lot of paused placements you still don't see a significant increase in the ROI, it's time to move on.

It's hard to give you exact numbers, but there are some "figures" that are generally accepted :

1. 10-15 times the payout should give you enough data to see if your current funnel has any potential at all. If you don't get any conversion from this amount of traffic, you need to find the problem.
2. -50% ROI is something that you could possibly optimize into profit. In case of more negative ROI, but with some conversions, you need to dramatically improve your creatives.
3. In case you already tested lot's of LPs and the campaign still sits in significant loss, it's time to move on. NOTE : 5 LPs is NOT a lot


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