This is part of a series of posts about how to run a successful Twitter Ad campaign to promote your book. Start here.
Step 5: Run a continuous campaign
You can just add more money to those existing campaigns and they will start up again. My approach is to feed each campaign segment in $10 increments, and continuously monitor the clicks and conversions. I track it in a spreadsheet so I can keep track of my conversion rate in real-time, although I’ve found that conversion is fairly constant in each market.
There is some evidence that Twitter will stop giving impressions to tweets that are old. So what I’m doing right now is taking my money maker tweet, and copying it exactly into a new tweet every two weeks. Then I swap that into the campaign. I’m really not sure if this is necessary, but it’s simple enough to do.
Tune your bid
You can tune your bid constantly. At low bids like $0.10 or less, you will see that your impressions tend to come in bursts. One day I had 500 impressions in the US market all day, and then I suddenly got 10,000 in the hour starting at 10pm. It really doesn’t matter. Whenever you get impressions, you’ll get your clicks, and then you’ll convert some of those leads to customers. If you bid higher, you’ll spend more and speed up the process. If you bid lower, you’ll save a little money and slow things down.
You need to set a cap, though. At $2.99, your royalty is about $2. Your bid should not ever be higher than $2 times your conversion rate. If your conversion rate is 5%, you should not bid higher than 0.05 x 2 = $0.10. You can bid lower if you want. Your campaign will go slower, but you’ll do better than break-even. You should not bid higher. That’s called paying people to read your book, and it’s a rookie mistake.
Also, feel free to add more accounts to the list if you find one that you think has good prospects following it. Don’t forget to add them to every campaign geography segment.
Test price elasticity
Run your ad campaign for at least two weeks before going to this step. You want to make sure that you’ve tuned your bid and have a consistent flow of clicks going to your page. Pause your existing campaigns, and copy them.
Increase your price. My first experiment was to go from $2.99 to $3.99. That’s ongoing, so I don’t have results to report yet. At the same time, I tuned the UK and Canada prices so they were prices ending in “99” as well. (At some point, I hope to test whether I get better conversion at “99” prices or at prices ending in something weird like “73.” I read a study once that said home prices that were weird numbers held better in negotiation.)
You can leave everything identical (you’ll have to select the tweet again). Launch the copy. The reason for doing the copy is that it’ll be easier to count clicks. We expect that our conversion rate will go down at a higher price, which is bad. But we make a lot more money per book, so it might be good. There’s only one way to know: test it.
Suppose you have 5% conversion at $2.99 ($2.04 royalty). With a fixed number of clicks, that’ll earn you the same money as a 3.6% conversion at $3.99 ($2.72 royalty). So after changing your price, you want to know if your conversion drops more or less than that “equivalent” level. If it doesn’t drop as much, you can keep your bid where it is and you’ll make money. If it drops more, you have established that $3.99 is above your optimal price, and you should test something lower.
Let it run for a week. I’ll update when I’ve got my data and we can compare notes.
Update: I finished the tests.