The First Conversion

You know the feeling. You’ve just started an advertising campaign, and you’re already spending money when your ad is printed, with no guaranteed result yet.

It’s being shown to thousands, and you anxiously await that first conversion. The problem is you don’t know how much you need to wait.

Why is Cost per Reach important?

Before you even get a conversion, someone has to click on your ad, and before that, your ad has to be seen by a few thousand people. And as you already know, that’s not free.

This is where the “Cost per Reach” metric comes into play. 

It’s an estimate that initially tells you everything you need to know about your future ad’s performance.

How expensive is your Audience?

Is the Audience you’ve chosen expensive to reach?

Are too many advertisements targeting the same Audience? Is my ad creative resonating with the Audience?

All these questions will have some initial answers by looking at how much it costs to reach people in each channel you are advertising.

A Simple Example

Let’s say you are targeting two audiences: Audience A and Audience B. You notice that the cost per reach for Audience A is $10 per 1000 people, while for Audience B, it’s $5 per 1000 people. What does this tell you?

Audience B is half as expensive to reach as Audience A. Now, what can you do with this information?

You can invest more in reaching Audience B and optimizing the ad creative to resonate better with them, cutting costs and potentially increasing the conversion rate.

Learn more about the Cost per Reach Formula.

Cut the Waste, Optimize the Spend

Understanding the cost per reach isn’t just about knowing the numbers. It’s about what you do with those numbers. It’s about making informed decisions that align with your goals.

By monitoring your cost per reach, you can:

  • Identify expensive audiences.
  • Avoid overcrowded targeting.
  • Enhance creative resonance.

The best part? You’ll see a drop in the cost of reaching your Audience as you gain insights. If it’s increasing, you know there’s a problem, and you can fix it.

Use Cost per Reach as an Early Performance Indicator

  1. Understand the Basics: Know the cost per reach for your specific campaign.
  2. Analyze Your Audience: Are they expensive? Why? Adjust accordingly.
  3. Avoid Overcrowding: If everyone’s targeting the same audience, find a niche.
  4. Enhance Creativity: Make sure your ad resonates. If not, tweak it.
  5. Monitor and Adapt: Keep an eye on the numbers. Adapt as needed.

Contagious Cost per Reach

What if there was a way to cut the costs and potentially turn the tables on the conventional cost per reach? 

That’s where the power of virality or word of mouth comes into play. 

Imagine your creative so resonant and engaging that people voluntarily share it. This isn’t just a fantasy; it’s a strategic approach outlined in Jonah Berger’s book, “Contagious: How to Build Word of Mouth in the Digital Age.” 

By crafting content that triggers sharing, you can substantially drop the cost per reach. 

People sharing your content means reaching thousands more without extra spending.


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Leo Celis