Let me walk you on this one ad that has over a million views, how much it costs me in terms of ad cost and how much it made me. You will discover if YouTube ads are for you, and if so, what does it take to create actual profitable YouTube campaigns.
An ad of mine that did particularly well today has got about 1.6 million views and the cost in terms of getting it to 1.6 million views cost me about $53,000. Now we’ll talk about what earned views, conversion rates and convergence mean. Always ask yourself this question, how does it lead to monetization?
In order to get 1.6 million views on that particular ad, we spent $53,000. Understand what is the big picture of this because clearly, monetization has nothing to do with the views. Understand that this is an ad, which means the video shouldn’t even be listed. It’s not a listed video on my channel, it is unlisted. The reason why it’s unlisted is because I don’t want people confused when they see this video. This video is only shown to people with specific interests that meet our targeting requirements.
This ad was basically an ad inviting people to a webinar. Just to give you guys some context, this webinar or training was about inviting people to show them what I was doing behind the scenes in terms of the book launch for Russell Brunson’s new book titled Traffic Secrets, and what I did in order to promote this contest and win this contest.
The first thing we must know regarding ads is out of the entire amount we spent, how much are we paying per click based on the numbers that YouTube is telling me. So roughly, I would know how much I’m paying approximately per click. So the question is, is that amount per click worth it? It depends how much a click is worth to you. So if a click is worth much lesser to you, then it’s not worth it. If a click is worth higher, then it’s worth it. So what does the click do? We always send that click to a sales process. So whether it’s a free plus shipping product, an application funnel, a webinar, we must know how much a click is worth.
How much a click is worth will largely depend on your sales process. My sales process was sending people to a webinar, and a webinar is a pretty lengthy sales process. What we do is that we send these clicks to a sales process. Your sales process would depend on what it is you wanna sell. If you wanna sell something that’s a high ticket item, which costs above $10,000, then you might wanna send them to an application sales process. If it’s a low ticket free plus shipping item, then it could be a free plus shipping sales process.
In our case, it was a presentation funnel, a sales process that’s in the form of a webinar. This webinar gets people to register for the training by entering their name and email, so we need to understand the sales process first. After they register, it tells them that they are confirmed, and then they’ll have to wait for the webinar to start. Bear in mind, not everyone might wait. During the webinar, I would then give amazing value and sell something at the very end.
Based on this sales process, we will figure out how much we are earning per click because we’d know how much we are paying per click. If I spent $53,000 and got back 106,000 clicks, how much does it cost me per click? Doing a simple calculation, take 53,163 and divide it by 106,000 clicks. So, it would cost me 50 cents a click, thus, Cost Per Click (CPC) is 50 cent.
The path to scaling any business is really in understanding these two numbers. How much does it cost you to get a click and how much does it earn you every time it gets clicked. Scaling your business is really all math and these two numbers are just one of the numbers that is so crucial, especially if you wanna build your business on the right foundation, or if you wanna scale your business and take it to a whole new level. It’s not a question of budget, it’s a question of because you know your numbers, you’ll be able to confidently scale it and take it to a whole new level.
Now I know how much a customer is worth every time they land on my page and every time they go through this sales process on the front end. The reason why it is important to understand the front end is because I’d know that for every $1 I spend, I am immediately getting a return on investment of over threefold, which is considered pretty good. Now imagine the return on investment over the long run where perhaps now they’re in my list, and if I continue to treat them well, if I continue to give them value and nurture that relationship, somewhere down the line, the ROI is gonna be higher.
While for Facebook, you might get clicks that are much cheaper, but the audience is different from those on YouTube. On Facebook, users are simply just scrolling and have a lesser attention span. It’s less likely for them to give you their time, from 30 minutes to even an hour. So what can we conclude from here, is YouTube videos for you in terms of ads? Well, it would be for you if you know how much it costs you per click, if you have a sales process in place, and if you know how much is your earnings per click. Because if you know these two numbers, that is when you have the confidence as well as clarity to scale.
Basically, this one video that generated 1.6 million views gave me 106,000 clicks and because the earnings per click is roughly $1.50 cents, it made me roughly $150,000 upfront in terms of revenue, and it cost me $53,000 in order to get these views. This is how YouTube ads work, and this is literally how you can run profitable YouTube ads. Discover the actual campaign, numbers, statistics so that you can decide for yourself if YouTube ads are for you by clicking here to watch this video on YouTube. Let me know what you think in the comments section!