Most YouTube advertisers aren’t paying anything, but if you have a decent background in ad technology you might be able to get away with paying more than the current average. (For comparison, Netflix charges $1 billion a year to promote Netflix).
Now, you’ve probably seen this trend before on a smaller scale, and in that case you’re probably not seeing the value there — because it’s not what it’ll eventually end up doing, and we’ll see how the price will start creeping up over time. As with any advertising technology, though, it’s not a magic bullet, there’s a certain threshold at which your potential ROI starts to drop.
We used the same ad tech on our own site as we did on Facebook — and it worked:
So, we tested the same ad on Facebook with the same goal in mind: get a return on investment. We chose a target audience of 10% of the Facebook Facebook users whose ages were 18 – 29. Because of our target audience, we had to target ads at some demographic information, which means it is more likely to be relevant to Facebook users ages 18-29.
We used a combination of Facebook ads and Google Adwords to drive the average cost per view above. That gave us a return of 10.14% per thousand views.
The best example of a low conversion rate (i.e., low clickbait) is the Google Adwords advertisement we published this afternoon, which had the following text:
The Facebook ads were a more expensive strategy, because they were targeting a bigger audience, but there were no conversions of note:
The Facebook ad had an average cost per click of $0.20, but the Google ad had an average cost per click of $0.04. So our revenue per thousand was $2.14, an increase of $1.20 when viewed in exchange for an increase in cost per click.
Note that this is the same cost per click for both ad services — the advertiser paid the advertiser directly, but the ad platform has a 3.16% commission rate.
And even when you get down to the smallest-scale case, there’s an important difference in conversion rates. That’s because of the cost and expense of doing the research that went into creating the Facebook ad. And there’s less in our case: in this case, we paid just for the social graph data the Google AdSense and Facebook ads provided to us. We had to perform
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