Average ad spend for luxury products?

[acidboot3r]

I'm currently running a dropshipping store selling luxury products. To let you know what I mean by this, let's say the average item cost for my store is £1000 (or whatever the equivalent is in your home currency). I've recently started Google Ads and created a test campaign for a brand.

The campaign started on the March 20th and since then, it's had over 36,000 impressions but only 118 clicks, and not one of those clicks led to an actual purchase. I used to have a budget of £50 per day and a max CPC of £1.70-1.90 to start with but I'm currently unemployed and relying on (very) limited savings. So I've reduced it to £10 a day with a max CPC of £1.30.

What I'm trying to find out is, am I expecting too much? Or is this kind of performance normal for my kind of niche?

 

[AlexDebo]

You are definitely expecting too much. typically you want to spend 3-5x the payout. 50 per day is insanely low. Why are you trying to sell something so high in price. you should probably try to lower the CTC if you want to pay that low in adspend. it would take months to sell 1k product at only 50/day. I spend around 50/day testing offers that are FREE + shipping.

 

[acidboot3r]

You are definitely expecting too much. typically you want to spend 3-5x the payout. 50 per day is insanely low. Why are you trying to sell something so high in price. you should probably try to lower the CTC if you want to pay that low in adspend. it would take months to sell 1k product at only 50/day. I spend around 50/day testing offers that are FREE + shipping.

Why am I trying to sell something so high in price? I do high-ticket dropshipping.

What do you mean by lowering the CTC?

 

[AlexDebo]

Why am I trying to sell something so high in price? I do high-ticket dropshipping.

What do you mean by lowering the CTC?

yeah but why are you doing high ticket dropshiping? based on your post it seems like you are new to dropshipping in which case I would choose a lower CTC (cost to consumer). 50 budget is way too low for a product that costs 1k to the consumer. If you get a product to drop ship that costs 5-20 you would have better results with an ad budget of 50/day

 

[acidboot3r]

yeah but why are you doing high ticket dropshiping? based on your post it seems like you are new to dropshipping in which case I would choose a lower CTC (cost to consumer). 50 budget is way too low for a product that costs 1k to the consumer. If you get a product to drop ship that costs 5-20 you would have better results with an ad budget of 50/day

Yes you're right, I am new to dropshipping. I'm doing high ticket because the profits are (much) higher than low-ticket, and I'm trying to target high-end customers.

So are you saying I should have an ad budget of 3-5k? How is that profitable for me if an item costs 1k but I spent 3-5x just to advertise it?