Marketing cost analysis | Stop wasting money with ADCostly！

Marketing cost is a growing concern in the current market. Many companies have very large sales volumes, but they have not brought huge profits. The reason is that the cost is too high and the profit is too low. Even if the sales volume is large, it does not bring good profits. So how to deal with this situation? We need to start with product costs, and learning cost analysis becomes a top priority.

The importance of marketing cost analysis

Marketing cost analysis can save the cost of products, lower production costs can get higher profits, understand the components of marketing costs can effectively control marketing costs.

Content of marketing cost analysis

• CPM (Cost Per Mille): As long as the content of the advertiser is shown to users of sufficient magnitude, the advertiser will pay for it. Advertising based on this is generally based on brand display and product release. For example, GD advertisements on news clients usually have better exposure results.
• CPT (Cost Per Time): Buy out a fixed amount of advertising space for a period of time, such as open-screen advertising, rich media advertising, or drop-down keywords in the application market.
• CPC (Cost Per Click): Charge based on the number of times your ad was clicked. Keyword bidding generally uses this model, which is more common in information flow advertising systems.
• Regional Trending: Classified according to the region where the advertising costs are located, the advertising costs of each country are displayed on the map to help advertising investors make a judgment.
• Top Campaign: Top ads calculated based on the popularity of ads. Viewing the cost of top ads has a reference value for your own ads.

How to view average marketing costs？

Tools: ADCostly

Introduction: ADCostly is an advertising cost analysis tool. ADCostly works with major advertising automation platforms to help advertisers, marketers, and agencies monitor trends in key indicators of real-time advertising spending.

Features:

• View different advertising cost metrics and get spending strategies
• Observe trends and find out the pattern of advertising costs
• Watch sudden changes and gain insight
• CTR, CPM, CPC, CPA can be easily obtained through the dashboard

Cost: Free

Use tutorial:

① Cost insight:

You can view the advertising cost indicators here, which are composed of filters + dashboards. By adjusting the filter content, the dashboards can present data results. Filter composition: Network, Publisher, Category, Advanced, Date.

• Network: Refers to network platforms, such as Google and Facebook. ADCostly currently only supports Facebook. Later, it may expand to more platforms such as Google.
• Publisher: Refers to the advertising distribution channels. We all know that Facebook has several channels such as Instagram and Messenger, so you can check the advertising costs of a single channel here.
• Category: Advertising release form. Here are three types of app, web, and page. We can select the app to view the advertising cost of the app.
• Advanced: It can be classified by country and CTA. There are dozens of indicators to choose from.
• Date: You can search by date. You can query up to the beginning of 2019 for advertising cost data.

By selecting different filter contents, different data situations can be presented below. The chart content of CTR, CPC, and CPM can directly show the trend of expenses, and also the distribution of countries, which can help us to make more Good decision.

② Top campaigns:

You can view the cost of excellent advertising here. Here is also the form of filter + list, the filter is the same as before, there are multiple indicators to choose from, the following advertising data contains: advertising Platform, country, CTA, page views, CTR, CPM, CPC. The ranking will be updated according to the real-time cost situation to ensure the most accurate data information.

case study：

Here is an example to demonstrate how an advertiser can control the budget by querying marketing costs.

I have a friend who wants to advertise games, and once asked me about the approximate budget situation, I gave him the following analysis and calculations:

First of all, the industry is games, the advertising channel is Instagram, the category is app, the area is US, and ADCostly is used to select the above conditions. We can see the final result as follows:

We can see that the advertising CPC in this state is floating between $ 1.02 and $ 3.67. If it is higher than $ 3.67, your advertising investment will be very dangerous, because if you are higher than the average CPC, then your profit will be generally On the low side. Then this advertisement is very uneconomical, and we need to reduce the cost from our own advertisement to meet this floating range.Of course, there are many indicators reflected here, I will not go into details.

Next, take a look at the excellent advertising situation in the same industry. With the same data filtering, we can see a batch of excellent ads. We can look at the first one, with a pageview of 136M, a CPR of 0.5 and a CPC of 2.5 , CPM is 17. In this way, we can have a deeper judgment. The cost per click is about $ 2.5, so I need to reach at least $ 2500 to reach 1K clicks. This has a direct amount to our advertising investment. In the same way you can calculate other indicators.

How can I reduce my ad cost increase?

However, while getting all these numbers, details, you may be wondering:

“How can I reduce my ad cost increase?”

Here I take Instagram as an example to tell you how to reduce Instagram expenses：

• Make your Instagram ads look as “natural” and natural as possible. If you don’t know where to start, there are many resources online. You can start here.
• See which demographics produce the most expensive results, then ignore those audiences from targeting
• Create a dedicated landing page for each Instagram ad
• Retarget users who have already visited your site

Summary

With the indicators of advertising expenditure, we can have a good grasp when advertising. If the range of invested funds is far beyond the average indicator, then getting paid is not a good operation. Grasp the public situation, and then analyze Points to help you. I hope the above is helpful.