Advertising Statistics and ROI for Authors: Part 2
For the next few parts, we’re going to look at major advertising channels I’ve used for my webserial “From Winter’s Ashes” and analyzing them one by one for the ROI and needs of an author and publisher. Today’s focus is the popular web 2.0 social/news aggregator, Reddit!
Advertising on Reddit:
Here’s what my marketing campaign on “From Winter’s Ashes” looks like on Reddit right now. I’m currently advertising in /r/Fantasy, and I’m at 89% of the campaign budget’s run as of today. I decided to see what gambling a modest $10.00 would look like advertising this way, and here’s my results.
Budget: $10.00 (the minimum)
Impressions Purchased: 10,000
CPM: (Cost per thousand impressions): $1.00
Impressions Delivered: (to date) 8890
Analysis: The click-through rate of this advertising campaign is mildly disappointing, call it a C grade. More concerning, however, is the CPC.
While $0.52 is, in fact, a very reasonable CPC for most advertising? I have to compare that against the performance of my website:
Conversion rate 0.02% (abysmal), average income per conversion $1.00. (That’s one conversion in 1823 unique visitors.)
I’d need a CPC of only $0.00055 right now just to break even. One THOUSAND times better performance just to break even.
If, however, I could add an ebook onto my website for sale, and turn that conversion rate to 2% and an average income of conversion of $4.85? My CPC break-even bar becomes $0.097. So anything below a $0.10 CPC and I’d be breaking even, really.
What if I really went snazzy with my site, though, and brought it up to the standard like Tor.com or Amazon.com enjoyed, of 10% conversion rate, at the same cost? Then, and only then, would the CPC I’m paying begin to make sense, at a per-conversion income of $4.85 off of a $6.00 sale.
Thus, Reddit advertising is far too expensive for my current business, from an ROI standpoint.
However, there are some nice advantages to Reddit advertising:
1. The CPC is very reasonable, and I can target my advertising to a particular subreddit, allowing me to target users in a meaningful way based on their interests.
2. The advertisement includes a little bit of graphical space, and is presented top-center on the page, which makes it hard to miss or ignore.
3. Interactivity. People can comment directly on your advertisements and engage you, as an author. Handy for starting conversations that convert the curious into the committed.
1. The AdBlock rate on Reddit is much higher than the general internet, with the average block rate being 55%, with some subreddits seeing 85-90%(!) of ads blocked.
2. Lead-in time. Unlike other websites, Reddit inventories advertisements by the subreddit. I had to wait 23 days until my advertisement began to show. Unless you’re planning well in advance of your event, Reddit might not fit well for your marketing plan.