Once the project is off the ground and starts to receive attention you will naturally want to test the elements of your landing pages, advertising, and all other factors that could lead to conversions.
The question, though, is how much should you spend?
Since the project is fresh you may be apprehensive to dropping a great deal of capital toward a testing campaign (a logical thought) because you are still relatively unsure about its viability. At the same time you don’t want to halt the potential growth of the project because you are making financial moves.
Here are some factors to consider when you begin tasting:
The Short Answer
The tl;dr of this post (before we even begin) is this:
- Know your cost per acquisition
- Focus on actionable feedback
- See it as a learning experience
With that being said let’s get to…
The Long Answer
The first thing I would do is to take a look at past campaigns, stats, and analytics to figure out your cost per acquisition costs. The CPA is how much you’re going to spend to acquire that customer; if you are dumping $100 into an ad to gain that customer but you are only selling products at $50 you are obviously operating at a loss.
Figure out what the CPA is, first, to have a baseline as to how much you should NOT spend.
Next I would focus less on a particular platform so you may test a variety. The goal is to gain actionable feedback which will be used to improve the conversions of your campaign. You can do this at a small cost through targeting and best practices. What you want is data you can use so you can deliver the right kind of advertising/marketing to an individual rather than trying to take a shotgun, blanket approach.
You want to understand your audience because this is where you’ll save money; run smaller campaigns across a variety of advertising/marketing channels to get a wide set of data to make those improvements rather than dumping it all in one place.
Lastly, think of it all as a learning experience because you aren’t going to get it right the first couple of times because there is simply so much you’ll need to know, sometimes the market is fickle and doesn’t react, and your instincts about the campaign may be misaligned.
If you treat it like a learning experience you will continue to make improvements. Like anything else it’s about the data and using what you’ve learned to make logical decisions that will lead to greater conversions.
Test, test, test. The more you do it the more you’ll know. In time you’ll be able to know exactly how much is too much based on your experiences (which is far better than going into it blindly).
Other Input on the Topic
Obviously all of this here to give you a baseline so you don’t burn through your budget but also don’t hamper the viability of the project. I’ve found a few others discussions on the topic you may find helpful where others have chimed in:
- How much should a small startup spend on Facebook marketing?
- How Much Should You Spend on Google AdWords?
- How to determine how much time you should spend on testing
Hopefully all of this should put things into perspective.
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