Page 109 - Book Funnels & Amazon Ads

CAMPAIGN OPTIMIZATION
Substitutes: 5 sales (4 orders + 1 KENP order) for 70 clicks or a
conversion rate of 7.1%
Loose Match: 36 sales (31 orders + 5 KENP orders) for 792 clicks
or a conversion rate of 4.5%
Over time, and as you collect data, you can figure out exactly how much
you should be bidding on each of these based on the conversion rate data
that you can then plug into your formula.
Let’s figure out what you should be bidding for loose match.
Whether you’re a fiction or nonfiction author, you should know your
value of a reader whether it’s through the purchase of larger ticket items,
or the readthrough to the rest of your books.
Your value per lead is the lifetime value of a customer, divided by the
amount of leads it takes to get that customer.
Let’s again take $250 as the value per lead... You can now figure out
how much you’re willing to pay for a click by first figuring out how much
you’re willing to pay for a reader.
Again, assuming that one out of every 10 readers becomes a lead, you’d
be willing to pay $25 per reader.
As you can see by the Loose Match conversion rates, it takes 22 clicks
to get a reader. You can divide the $25 by 22 to get the break-even cost-
per-click of $1.14.
Remember that the Amazon Market is always changing, and some-
times the conversion rate trends upward and sometimes downward. You’ll
want to make sure that you’re adjusting your bids accordingly.
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