How to Increase Ads ROI By Honing in Your Demographics

By James Vannelli | Uncategorized

Feb 17

Let’s talk about demographics and how important they are when it comes to increasing your ads ROI.

When you start a new ads campaign, it’s usually advisable to start with really broad targeting.

You target all potential countries, age groups, and genders that fit your customer avatar.

But one of the biggest lost opportunities for most course creators using paid ads, is not taking the time to measure performance based on these demographics.

Specifically, what you need to know is how much is costs to acquire a customer, based on these demographics, and their various combinations.

  • Location
  • Age Group
  • Gender

Whereas your original campaign might target:

  • Canada, USA, Australia, Europe
  • Ages 18-64
  • Male & Female

And overall, you might have a cost to acquire a customer of $500.

Once you get enough data, by analyzing it, you’ll be able to find the exact demographic combination that leads to your lowest cost per acquisition possible.

For example, you might analyze the data and realize that:

  • USA
  • Age 25-34
  • Female

Has a cost to acquire a customer of just $100, whereas the rest of your campaign demographics cost on average $1000

So perhaps the overall campaign has a cost to acquire a customer of $500, but by drilling deeper into those statistics, you can pinpoint and focus on the demographics that are getting the best returns, and eliminate those that are generating the worst.

It’s not difficult, and by doing so, using this example, you could increase your ROI by 500%.

So if you’re running campaigns to a broad audience, and you don’t know which subset of the audience is responsible for the best results, then you need to be doing this.

If not, you’re leaving a literal boatload of money on the table, which most businesses cannot afford to do!

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About the Author

Over the past 6 years I’ve built dozens of websites, managed close to $1M in online ads, and helped shape the online marketing strategies of hundreds of small businesses.

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