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How Email Marketing Makes Ads More Profitable

There is a big misconception when evaluating paid ads.

Let me explain. Are you aware that most leads do not purchase in the first 24 hours up to even 90 days after they first interact with your brand?

If you are not aware of this, you probably are losing tons of money on the back-end.

For example: 

Let's say you have a direct to purchase ad campaign that gets 3-4% conversions.

When you spend $200 to get 100 clicks for a $60 product... Your earnings are say, $180-$240.

Factor in the actual profit margin and the math might not look good to you. You should probably turn OFF that campaign right? 

WRONG.

Those who understand email marketing would go about this differently

They’d focus on the lead first instead of the sale.

That 3-4% conversion could instead be an aggressive coupon for say...  20% off.

Now the conversion rate jumps to 10-15%!

Immediately right after they get the coupon they can buy. 

Let’s say, 30% buy immediately giving the same number of buyers as example 1.

Yes, the profit is 20% less, but follow me....

Remember this person also has 7-11 additional new leads, who took the coupon but didn't buy yet. 

A shopping cart abandonment sequence can get 2-3 additional sales within 24 hours. 

Now we’re up 2x compared to the first example and we still have 4 additional leads to nurture.

No, they don’t buy in this first week. 

But because they’re on the email list... within the next 3 months, one of them does eventually buy. 

Or maybe, 6-months later, another lead decides to jump on a Black Friday deal. 

Voila!

Your ROAS (return on ad spend) went from barely breaking even to 2x or higher!

FYI: Once they're on your email list, you're no longer paying for traffic)

Anywho... this is of course made up.

However, these principles are what the smartest companies are doing every day with email marketing.

Note, I didn’t even talk about upsells, order bumps, OTO's (one time offers) that all increase the average cart value and make the 20% off coupon meaningless.

Please just do this: 👉  Start thinking about how you can use email and lead magnets to build your list and sell over months and not just from the ad. 

This way you can make your ad campaigns more profitable. 

Create a Great Day! - AC