Let's look at theoretical numbers. Say you have a mediocre conversion rate of 1%. At 30c per click it will cost you $30 to make a $2 sale. Thus, the most you could have expected from this venture is like $3, but even worse, you managed to not figure on Apple taking 30%, so your'e back to $2 in potential money on a $50 spend.
Ouch.
Next time bid a penny and see what happens. At a penny you could profitably sell your app at a 1% conversion rate. That's $1 cost to make $1.40. Not great money, but it's at least got potential and if you got enough volume of sales you could become a top app and make some sick money.
Also, never listen to Ad Networks on what to bid. Bid based on YOUR profitability, not THEIRS. If you can't afford more than a penny a click, then fine, move on.
In retrospect, yeah, I feel like an idiot for bidding the suggested bid. I've run pretty substantial campaigns on both facebook and google adwords though, and always had good experience bidding somewhere within 20% of the bid.
I also maybe was slightly duped by this statement after setting moderately restricted targeting:
"You have selected market area or demographic targeting options. As a result, you will receive significantly fewer impressions."
But thanks, and for anyone reading this, don't advertise paid apps on Admob, and don't bid anything higher than $0.10 if you have a small campaign.
PPC usually does not make sense for smaller per sales pricing. The numbers make even less sense for Amazon affiliate marketing.
Perhaps lead generation instead?
Don't try to initially sell your app, instead, obtain the contact info for your potential customer, and you can sell him/her many different things, including apps, but also books and other products/services.
Also, you will be able to track these customers and know which are most likely to respond to your multiple offerings.
I don't think this reflects poorly on Admob at all - more that paying 30c per click lead for a $2 app doesn't work, and $50 isn't a sample size.
even at a 5% conversion rate from click to purchase (highly unlikely - for this type of app you are talking about less than 1%) your customer cost of acquisition would be $6. do the math.
with these apps you have to be looking at review sites, social media, blogs (like you have now), link exchange with other apps, making it free and putting ads in it, etc. the hit rate is very very low.
Agreed, in retrospect the CPC bid was stupidly high. They suggested ~$0.28 after we set our targeting...I guess I trusted google since their Adwords suggestions are generally pretty accurate.
We also ran a $50 campaign previously though I didn't include it in this post. We didn't even realize we had run the campaign-- 1200+ clicks at a $0.04 CPC in minutes.
We thought our payment had never processed, but when we checked our bank account it had-- it's just that Admob spent our budget so quickly we didn't realize it.
Mobile ads are not the means to acquire new customers. Relationships with review sites, blogs, and other media outlets is your best bet. A good review can get you some pretty good uptake. We got reviewed in several Android blogs and reached 18k downloads in a little under a week (our app was free).
I haven't experimented much with mobile ads primarily because they aren't effective and won't ever be effective. At least, that's what the studies say :).
Mobile ads are largely a money drain. Most clicks are accidental and will not lead to a sale. I'd only recommend using AdMob if you are promoting a free app and are doing a burst campaign to break into the Top 25 chart of a particular category.
Secondly, a $50 budget is peanuts and paying $0.25/click for relatively un-targeted admob clicks is crazy. We normally pay $0.05/click for such crappy traffic.
We've spent 1000's on mobile ads and it's only an effective strategy for pushing your downloads a bit higher so that you have a better chance of hitting a 'gold spot' in the charts. E.g. when you are 26th and you want to get into top 25.
I agree. The ~$0.25 CPC bid was suggested, we actually only decided to go with the suggested bid because they had warned us that demographic targeting would limit exposure.
We actually ran a similar campaign a few days previous where we had over 1,000 clicks at a .04 CPC and didn't see any increase in downloads.
I ran a $50 Admob campaign over the weekend for a new FREE app we have on the Android Market. It did exactly what I needed it to, it got me about a hundred downloads. Today, that app has a little over 400 active users.
The ball has started rolling, and it only took $50.
THAT BEING SAID, the first time I ran an Admob campaign, I had just about the same experience as this writer.
Admob works great for getting lite-version, free, download apps a little traction. I will never again run it for a paid app.
IN-FACT, in the Android Dev Console, you'll notice that only your free apps have the "Advertise this App" link next to them. I assume that Google probably is very aware that Admob campaigns can work great for free apps, but it's a different ball game when it comes to paid apps.
Lastly, I'd like to add that I took the time to create a graphical banner for my free app ad that made a BIG call to action - Download my new puzzle game for free.
In retrospect (and maybe this should be a follow-up experiment), we should have advertised ONLY our free, limited version and focused on getting the cheapest CPC possible.
$50 at a $0.02 CPC would yield 2500 clicks. For a free app, if we saw a 10% download (a very healthy assumption I know) that would be 250 downloads of the free app.
Maybe after proving the value of the app with limits, we get approximately 10% to convert to paying of the 250 downloads.
That's 25 paid, or ~50 pre apple tax. Still losing money with very healthy assumptions, but I think we'll try this as well...even after the negative experiment and will post our results.
I just want to say thanks for posting your experiences. Everyone here is ragging on you for "too small sample size" and "u did it wrong" but I appreciate that you came forward and shared.
For the people who scoff at a $50 ad budget, that just tells me they've never done this with their own money. It's easy to brag about campaign size when you're spending out of someone else's wallet.
If you want guaranteed results, use a cost-per-install campaign. I work at an ad network that specializes in these kinds of campaigns.[1] You'll have to pay a lot per-install, considering how poor conversions are going to be. Our network automatically calculates your eCPM on the fly and will rank campaigns according to that—and so too it works with most competitors' network.
To be honest, with your tiny budget and a two dollar app, there's no effective way to spend your money with a positive return on investment.
The only ad platform I have ever had any success with is Reddit's cheap $20 self serve ads. I haven't tried any Facebook ads though so there's that giant I have yet to try out. Reddit's great though mainly for the feedback and people who are actually interested in what you're selling and willing to critique/x post your ad.
To help capitalize on all the HN traffic, you might want to include a more prominent link to fotobookapp.com (probably in the first sentence when you introduce the app). It took me a while to see the link at the end of the article.
Also, the "App Store" link in your posterous profile doesn't actually link anywhere.
I do not know how the author's application retrieves Facebook photos, but I believe that Facedown (which was a desktop application, not a web app) was shut down because not because it was saving photo albums, but because it required users to input their Facebook credentials into it and tried to download photos by scraping album information (by pretending to be a web browser).
I have operated a reasonably popular Facebook application that has similar photo saving functionality (using their API), and not have not run into any issues. It has transformed from a desktop application using the REST API to a Graph API using web application at http://socialphotodownload.com . Unlike Facedown, I try to follow Facebook's Platform Policies.
How does it make a difference at all? Unless what you are promoting can't take the traffic, it's irrelevant. When you're paying CPC you have no reason to care when the clicks come in, 10 clicks a day for three days isn't any worse or better than 30 clicks in five minutes.
I liked the first comment (in the post) by Andrew Maine. Basically, it's simple math. If you expect a 5% conversion on a $1.99 app (which will earn you $1.39 after Apple's cut), the most you can spend for a viable business model is 6 or 7 cents per click.
Less if you want to make an actual profit on the app and not just get more users. But then, if you want more users, maybe the app should be free?
But once you make a conversion, do you have any way to subsequently contact that same user to make them aware of your other app/service/product offerings?
Also, if the app is recurring billing, the formula changes completely.
I know I'm not the only one who feels really sorry for the fellow. I'm imagining him sitting by his laptop and scrupulously making sure his target demographics are correct for his ad campaign, and this nonsense happens. Google should make it clear in the FAQ that your campaign will be short lived if you ad funds under a certain amount.
[+] [-] unreal37|14 years ago|reply
[+] [-] programminggeek|14 years ago|reply
Let's look at theoretical numbers. Say you have a mediocre conversion rate of 1%. At 30c per click it will cost you $30 to make a $2 sale. Thus, the most you could have expected from this venture is like $3, but even worse, you managed to not figure on Apple taking 30%, so your'e back to $2 in potential money on a $50 spend.
Ouch.
Next time bid a penny and see what happens. At a penny you could profitably sell your app at a 1% conversion rate. That's $1 cost to make $1.40. Not great money, but it's at least got potential and if you got enough volume of sales you could become a top app and make some sick money.
Also, never listen to Ad Networks on what to bid. Bid based on YOUR profitability, not THEIRS. If you can't afford more than a penny a click, then fine, move on.
[+] [-] ajhit406|14 years ago|reply
I also maybe was slightly duped by this statement after setting moderately restricted targeting:
"You have selected market area or demographic targeting options. As a result, you will receive significantly fewer impressions."
But thanks, and for anyone reading this, don't advertise paid apps on Admob, and don't bid anything higher than $0.10 if you have a small campaign.
[+] [-] chopsueyar|14 years ago|reply
Perhaps lead generation instead?
Don't try to initially sell your app, instead, obtain the contact info for your potential customer, and you can sell him/her many different things, including apps, but also books and other products/services.
Also, you will be able to track these customers and know which are most likely to respond to your multiple offerings.
[+] [-] nikcub|14 years ago|reply
even at a 5% conversion rate from click to purchase (highly unlikely - for this type of app you are talking about less than 1%) your customer cost of acquisition would be $6. do the math.
with these apps you have to be looking at review sites, social media, blogs (like you have now), link exchange with other apps, making it free and putting ads in it, etc. the hit rate is very very low.
[+] [-] ajhit406|14 years ago|reply
We also ran a $50 campaign previously though I didn't include it in this post. We didn't even realize we had run the campaign-- 1200+ clicks at a $0.04 CPC in minutes.
We thought our payment had never processed, but when we checked our bank account it had-- it's just that Admob spent our budget so quickly we didn't realize it.
[+] [-] phereford|14 years ago|reply
Mobile ads are not the means to acquire new customers. Relationships with review sites, blogs, and other media outlets is your best bet. A good review can get you some pretty good uptake. We got reviewed in several Android blogs and reached 18k downloads in a little under a week (our app was free).
I haven't experimented much with mobile ads primarily because they aren't effective and won't ever be effective. At least, that's what the studies say :).
[+] [-] ry0ohki|14 years ago|reply
[+] [-] n9com|14 years ago|reply
Secondly, a $50 budget is peanuts and paying $0.25/click for relatively un-targeted admob clicks is crazy. We normally pay $0.05/click for such crappy traffic.
We've spent 1000's on mobile ads and it's only an effective strategy for pushing your downloads a bit higher so that you have a better chance of hitting a 'gold spot' in the charts. E.g. when you are 26th and you want to get into top 25.
[+] [-] ajhit406|14 years ago|reply
We actually ran a similar campaign a few days previous where we had over 1,000 clicks at a .04 CPC and didn't see any increase in downloads.
[+] [-] dpcan|14 years ago|reply
The ball has started rolling, and it only took $50.
THAT BEING SAID, the first time I ran an Admob campaign, I had just about the same experience as this writer.
Admob works great for getting lite-version, free, download apps a little traction. I will never again run it for a paid app.
IN-FACT, in the Android Dev Console, you'll notice that only your free apps have the "Advertise this App" link next to them. I assume that Google probably is very aware that Admob campaigns can work great for free apps, but it's a different ball game when it comes to paid apps.
Lastly, I'd like to add that I took the time to create a graphical banner for my free app ad that made a BIG call to action - Download my new puzzle game for free.
[+] [-] ajhit406|14 years ago|reply
We're probably much better off spending it all on our Free version with limits to prove the value to free users and hope they upgrade.
[+] [-] ajhit406|14 years ago|reply
$50 at a $0.02 CPC would yield 2500 clicks. For a free app, if we saw a 10% download (a very healthy assumption I know) that would be 250 downloads of the free app.
Maybe after proving the value of the app with limits, we get approximately 10% to convert to paying of the 250 downloads.
That's 25 paid, or ~50 pre apple tax. Still losing money with very healthy assumptions, but I think we'll try this as well...even after the negative experiment and will post our results.
[+] [-] MicahWedemeyer|14 years ago|reply
For the people who scoff at a $50 ad budget, that just tells me they've never done this with their own money. It's easy to brag about campaign size when you're spending out of someone else's wallet.
[+] [-] SeoxyS|14 years ago|reply
To be honest, with your tiny budget and a two dollar app, there's no effective way to spend your money with a positive return on investment.
[1]: http://chartboost.com
[+] [-] stuti90|14 years ago|reply
[+] [-] shii|14 years ago|reply
[+] [-] iamclovin|14 years ago|reply
[+] [-] ajhit406|14 years ago|reply
I'm assuming you can target subreddits with ads?
[+] [-] mcobrien|14 years ago|reply
Also, the "App Store" link in your posterous profile doesn't actually link anywhere.
[+] [-] iamclovin|14 years ago|reply
[+] [-] legec|14 years ago|reply
[+] [-] ajhit406|14 years ago|reply
But this comment stream has taught me a alot, we want to run a considerably larger experiment with our free application and will report back.
[+] [-] ericflo|14 years ago|reply
[+] [-] ajhit406|14 years ago|reply
We also (mistakenly) also spent $50 on Admob a few days before this. We didn't even realize we had spent it, that's how fast it happened.
I just can't conceptualize technically how these stats could be real.
[+] [-] yhlasx|14 years ago|reply
I think around 50+ clicks were accidental, and immediately back key was pressed before loading the content.
And with other 100, i guess your assumption was wrong that there is big enough market for this.
But something else is interesting here, you really can make money on ads from free apps --
[+] [-] mikeknoop|14 years ago|reply
See: http://www.vincentcheung.ca/blog/facedown/cease-and-desist/
[+] [-] martey|14 years ago|reply
I have operated a reasonably popular Facebook application that has similar photo saving functionality (using their API), and not have not run into any issues. It has transformed from a desktop application using the REST API to a Graph API using web application at http://socialphotodownload.com . Unlike Facedown, I try to follow Facebook's Platform Policies.
[+] [-] ajhit406|14 years ago|reply
[+] [-] JoshTriplett|14 years ago|reply
[+] [-] ajhit406|14 years ago|reply
"Please note that budgets under $200 per day can still be spent in a matter of minutes."
[+] [-] corin_|14 years ago|reply
[+] [-] giladvdn|14 years ago|reply
Less if you want to make an actual profit on the app and not just get more users. But then, if you want more users, maybe the app should be free?
[+] [-] chopsueyar|14 years ago|reply
Also, if the app is recurring billing, the formula changes completely.
[+] [-] cantbecool|14 years ago|reply
[+] [-] hobo5|14 years ago|reply
[+] [-] ajhit406|14 years ago|reply
"[P]lease note that budgets under $200 per day can still be spent in a matter of minutes."
I was just frustrated that they didn't include this anywhere in their campaign or ad group setup or their FAQ. I had to write them to get this answer.
And then, why even allow for daily budgets below 200?
[+] [-] jamescoops|14 years ago|reply