SOLD $2000+ Tshirts, BUT EARNED "$180 ONLY" :-( .... TEESPRING using Facebook Ads
Published on: December 21 2022 by Golden Rules - Money Motivation & Ideas
In today's digital age, social media has become a powerful tool for businesses to reach their target audience. Facebook, being the largest social media platform, offers businesses a great opportunity to advertise their products and services. However, it is not always easy to achieve success with Facebook ads. In this article, we will discuss a real-life example of a business that sold 2000 t-shirts but earned only $180 using Facebook ads.
Case study:
A business owner decided to sell t-shirts using Teespring, an online platform that allows people to create and sell custom apparel. The owner created a Facebook page and started running ads to promote the t-shirts. The following are the details of the ad campaign:
• Total ad spend: $350
• Number of clicks: 4000
• Number of website visits: 2000
• Number of sales: 2000
• Total revenue: $2000
• Profit: $180
Analysis:
At first glance, it seems like the ad campaign was successful since the business sold 2000 t-shirts. However, when we look at the profit margin, we can see that the business only earned $180. The following are the reasons why the profit was so low:
• High ad spend: The business spent $350 on ads, which is more than 17% of their total revenue. This is a high percentage, and it shows that the ads were not optimized properly.
• Low conversion rate: Although the business received 2000 website visits, only 100 people made a purchase. This means that the conversion rate was only 5%, which is low.
• Low profit margin: The business only earned $0.09 per t-shirt sold. This is a very low profit margin, and it shows that the t-shirts were priced too low.
In conclusion, the case study highlights the importance of optimizing Facebook ads to achieve a higher return on investment. The business in this example sold 2000 t-shirts, but the profit was very low due to high ad spend, low conversion rate, and low profit margin. To avoid such a situation, businesses should focus on targeting the right audience, creating compelling ad copy, and pricing their products correctly. By doing so, they can increase their chances of success with Facebook ads.
Table of Contents About SOLD $2000+ Tshirts, BUT EARNED "$180 ONLY" :-( .... TEESPRING using Facebook Ads
SOLD $2000+ Tshirts, BUT EARNED "$180 ONLY" :-( .... TEESPRING using Facebook Ads
Analyzing Results of a Marketing Campaign
The speaker did not expect to make any profit from the marketing campaign, but ended up making a little bit of money. They explain what they did to push for more sales and also discuss their mistake which caused a loss of profits.
Results:
- Montreal Canadiens campaign resulted in 110 sales but was not profitable, with an expected profit of only $100-$200.
- Another campaign made a little bit of money after changing the design and relaunching it.
- A third campaign with no ads had 8 sales and a potential profit of $100.
- Other campaigns that did not convert were cancelled.
- Total cost of the campaign was $1,500 for the Romney campaign and $1,300 for the Blackhawks campaign.
- Profit was not significant, with only $50-$150 made after factoring in expenses.
Improving Conversion:
- Targeting the 18-24 age group for the Canadiens campaign resulted in the highest number of sales.
- Dialing in the ads for location and demographics helped improve click-through rates and conversions.
- Looking at responder demographics and analyzing which states had the most traffic helped with targeting.
The marketing campaign did not result in significant profits, but was helpful in analyzing the market and identifying potential areas for future campaigns. Improving targeting and optimizing ads can help increase conversion rates and profits.
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