I'm running a campaign for a new brand. I'm running the PMax campaign and also their search campaign. I'm getting enough clicks according to the budget, but not getting enough conversions. I spent $600 but only got seven conversions and the value is too low. Alright, so there are a couple of things you need to look at.
First of all, you can see that you are getting impressions, you're getting clicks and you are getting conversions. When you say my conversions are low, what are you expecting? 10, 20, 30, 40 without that, you don't know what your goal is. You need to have a goal. That okay. If I have a conversion rate of so much and my average order value is X dollars, then I'm going to get so much ROAS or return on ad spend, their value is too low.
So you are selling a low-ticket item. That could be. It's not a problem. It's just a fact. If you're selling a low. I'm not saying cheap. Cheap does not mean low quality. Cheap also means that it's a $10 or a $5 product. It could be the best product in your market. So I won't say cheap, but I would say low ticket or low value. If you were selling a product that is $500 or $1000, then it would look completely different. So you need to do all your sums and the projections and the simulations beforehand. Okay, If I spent so much money, my click-through rate is so much.
I got so many clicks, my conversion rate is so many, my average order value is so much, and I’m going to spend $100, and how much I'm going to get back? And once you know that number, then you work out what's your cost of goods, you take it out, and then you can work out your ROAS. That's how I would go about it. But saying that you only got seven conversions does not mean anything. But what it does mean is that it is starting to perform. You have got proof of concept. Customers are buying your product, and you just now need to start scaling it up.
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