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audience segmentation (3)


12-14-2016 04:20 PM #1 sc2alone (Member)
audience segmentation

a minimum amount of audience to which it is necessary to communicate? In some small countries, the audience is not more than 200k people. And if we segmented by age, the very sorrow. Maybe the envelope and will be good, but burn out quickly. From a minimum audience do you think it is necessary to start?


12-18-2016 12:27 PM #2 zeno (Administrator)

I think you should look at the minimum likely revenue you can make from that audience and whether it is then worht your time.

Think about your offer. What's the maximum likely % of the audience you could convert? 0.1%? 1%? 10%? If it's an app install, probably quite high. If it's a game, probably somewhere in the middle. If it is a high cost offer requiring a CC-submit, probably a much smaller percentage.

Now take that percentage, multiply it by your audience size, multiply it by your payout.

E.g. let's just look at a 1% total conversion. Over the lifespan of the campaign you convert 1 in 100 people.

Audience = 50,000
Payout = $12
Total revenue = 0.01 * 50,000 * 12 = $6000 in total revenue

Audience = 12,000
Payout = $1.50
Total revenue = 0.01 * 12,000 * 1.50 = $180 in total revenue

Audience = 400,000
Payout = $0.75
Total revenue = 0.01 * 400,000 * 0.75 = $3000 in total revenue

These are just examples, what I am getting at is that there is no minimum audience you need, it depends on how much you could get from that audience, the likelihood of that, the value of your time, etc.

If just starting out you'll probably have no idea about likely conversion rates for your campaigns in specific verticals/areas, but just guess. If you do some basic arithmetic you should also get a feel for how much you can spend per day, how fast you should spend, etc. Spending $1000/day on a small audience is going to burn it extremely quickly for example, so it would be smarter to spend lower and give yourself time for testing/optimisation.

TL;DR:
Uhh, maybe try to keep (0.01 * audience size * payout) above $1000 to remain sane.


12-18-2016 10:56 PM #3 sc2alone (Member)

Dude, thanks for the reply.


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