Up until this point, we discussed two methods of using ezine advertising, playing numbers, and targeting. Then, we focused on targeting by discussing how to select ezines based on content and audience, and how to analyze those selected for best advertising value.
Now, finally, we come down to actual cost of purchased advertising. How much is affordable and what is too much?
As I said in part three of this series, it just depends. I don't mean to give a misleading answer with that statement, nor do I mean to skirt around subject. It's just that price is a subjective item that revolves around product or opportunity you are promoting and ezine you are promoting in.
So, while I cannot give you a simple rule to follow, I can give you a way to analyze cost. However, there are still a BUNCH of other factors that I'll bring up afterward.
First, let's use term 'ad hits' to describe number of people that view your ad in an ezine and then answer it by either going to site you want them to or emailing to you or your auto responder.
Now, look at following formula:
(# subscribers) x (% response) = Expected Ad Hits
1000 subscribers x 3% = 30
>From there, naturally, it depends on how many sales you get from ad hits you receive and how much money you make per sale. Getting 1 sale out of 30 hits is a 3.33% sales ratio.
Now, if you can do at least that, consider how much you make per sale as opposed to how much ad cost you. If you make $10 per sale and ad to 1000 subscribers only cost you $5, then there's your profit of $5.
So essentially equation you need to use is this one:
Income for ad =
(# subs) x (% response from ezine) x (sales % from site) x ($ made per sale)
If that number is of greater value than cost of ad, then it's good. Of course, all of this is assuming you have an ad tracking system in place so you can see results of your advertising in different ezines. If you don't, then either you advertise in only one ezine at a time so you can track your results, or you make groups based on ezines that are similar and you track your results as you go through different groups. This may be done by counting hits at your site, or merely by seeing what results in sales.