1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.
  2. Hey Guest Last month we upgraded BlackHatWorld.com to a new platform - . If you notice anything that requires attention please start a new thread here.
    Dismiss Notice

[Noob][Story Time] My first media buy

Discussion in 'Media Buying' started by meaculpa, Jul 7, 2013.

  1. meaculpa

    meaculpa Jr. VIP Jr. VIP Premium Member

    Joined:
    Dec 27, 2008
    Messages:
    710
    Likes Received:
    336
    Occupation:
    SEO
    Location:
    Netherlands
    Hey guys,

    So back when this story happened I wasn't even aware that what I was doing was called Media Buying but I guess it was exactly that.

    Back in 2010 I ran a website that sold codes for an unnamed music service. The service was quite new and not a lot of people were using it yet so our market was quite small. Fortunately it also meant that our competition was virtually non existant. We'd setup an e-commerce site with a 4-click payment gateway. The whole setup was really bad but the site looked pretty decent. We weren't really sure of what we were doing but we knew we had a chance to make some decent money.

    Once the site was all setup and we had the keys in stock we were ready to do the advertisement. Not wanting to only focus on SEO (even though we had an EMD) I decided to market on other platforms. The first platform we looked at was Adwords. We threw $20 at it and it completely failed. We gave up on Adwords and started looking at social platforms. Facebook was the site we eventually decided to put some ads on. I personally loved the fact that we could market specifically to people who had liked the music service's FB page because I knew that would mean they'd be interested in our (much lower priced) keys.

    I setup an ad campaign on Facebook using a $50 coupon code because I initially did not want to use more of my own money. Here are the statistics of the ad I ran the first time (I don't have the CPM info anymore):

    Type: Text Ad
    CPC: $1.20
    Profit Per Click: $2.80
    Clicks: 50
    Total Profit: $140
    Actual Profit: $70

    As you can imagine, our conversion rate was insanely high. This was partially due to the fact that we knew that everyone clicking our ads would really want what we had to sell (We were $2 cheaper than the official site) and partially due to the fact that we had a couple people buy up to 20 codes at a time and coming back monthly. I had never seen ROI of this kind anywhere so I got excited and threw a little more money at it. Here are the statistics of my next $500 Facebook ad:

    Type: Text Ad
    CPC: $0.80 (Better targeting and ads)
    Profit Per click: $3.00 (Slightly less conversions but $0.40 less CPC)
    Clicks: 625
    Profit: $1875
    Actual Profit (Profit - keys): $937.5

    Because we were running out of keys and the official site wasn't willing to sell us any keys anymore we figured we would sell off our last 400 keys by placing one last ad of the exact same type as before and we made another $3200 (Actual Profits: $1600).

    Here's a quick list of things I did right/wrong:

    Highly targeted Facebook ads
    Starting REALLY small as a test
    Bad, horrible, ugly, terrible website
    Great Product
    Badly written ads

    I think it's fair to say I got very very lucky with our timing, our product and our audience.

    After these last keys we had to close the site and stop the Facebook advertisement but for a first time we were very happy. I haven't really dipped my toes into Media Buying since then but I'm excited to get back into it.

    Thanks for reading,
    Mea
     
    • Thanks Thanks x 3
    Last edited: Jul 7, 2013
  2. Junkfood00

    Junkfood00 Elite Member

    Joined:
    Sep 13, 2011
    Messages:
    1,949
    Likes Received:
    1,336
    Well, what to say... cool story bro, lol.
     
    • Thanks Thanks x 1
  3. meaculpa

    meaculpa Jr. VIP Jr. VIP Premium Member

    Joined:
    Dec 27, 2008
    Messages:
    710
    Likes Received:
    336
    Occupation:
    SEO
    Location:
    Netherlands
    Thanks but I was trying to show that even if you have little experience, if you start small, you can still make a decent amount of cash :)
     
  4. SolitonIM

    SolitonIM Newbie

    Joined:
    Feb 23, 2013
    Messages:
    30
    Likes Received:
    46
    Occupation:
    Apple Tech, Internet Marketing
    Location:
    Your Basement.
    Home Page:
    Nevermind Junkfood00, he may have woken up on the wrong side of the bed lol.

    But congratulations, and I'm sure it'll be good inspiration for newbies who need that push forward.
     
    • Thanks Thanks x 1
  5. chockfactor

    chockfactor Jr. VIP Jr. VIP Premium Member

    Joined:
    Jan 16, 2010
    Messages:
    446
    Likes Received:
    256
    Location:
    In your nightmares
    Yo man been quite a while since I last heard from you, hope all is going well and thanks for the story :)