The expected conversion rate for leaflets is 2%. Leaflet distribution will bring in revenue: 200 * 3000 = 600,000 rubles.
Cost of a leaflet campaign: 10,000 * 4 = 40,000. Customer acquisition: 40,000 / 200 = 200 rubles.
Let's calculate (in a simplified form) the profitability of sales:
1. When promoting through contextual advertising:
3000 (price of the cake) / (300 (client acquisition) + 2500 (cost of the cake)) * 100% = 7.14%.
2. When promoting through leaflets:
3000 / (200 + 2500) * 100% = 11.1%.
Thus, despite the more expensive display — 4 rubles, the bolivia telegram data profitability of sales when distributing leaflets is higher than that of contextual advertising, due to a higher conversion (2%). Consequently, we budget 40,000 rubles — slightly overpaying in comparison with contextual advertising, but at the same time expecting that investments in the campaign will bring more money.
Important! When determining the required volume of use of promotion channels, you should not:
try to calculate the volumes of competitors (since they may be satisfied with other profitability indicators);
limit expenses on certain channels due to a lack of available funds (underinvestment in advertising - direct losses);
make the advertising budget dependent on sales dynamics (the reverse effect has practical significance, but only for the purpose of assessing the effectiveness of the campaign, not for planning it).
At the same time, it would not hurt to analyze the marketing policy of competitors: this will help avoid obvious mistakes when determining a promotion strategy (which may contradict the consumer logic of the market).
1. Many types of tasks are difficult to tie to digital indicators (and, accordingly, calculate profitability).
Typical examples are conducting research work, analyzing data on competitors. The costs of these procedures can be significant, but there is no guarantee that they will pay for themselves as a result of the campaign.
The following should also be taken into account:
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