Marketing Stats - Web Advertisement on Reddit

1 year ago | Patrick Rochefort (Member)


budget spent imps purchased imps delivered cpm clicks ctr cpc
$10.00 $2.01 10,000 2,011 $1.00 6 0.298 $0.34

Here's what my marketing campaign on "From Winter's Ashes" looks like on Reddit right now. I'm currently advertising in /r/Fantasy, and I'm at 20% of the campaign budget's run. I decided to see what gambling a modest $10.00 would look like advertising this way, and here's my results.

For those who don't speak SEO:

Budget: The total budget of the advertising campaign.)
Spent: The amount spent to date.
imps purchased: Impressions Purchased. Every display of my ad to a person, successful or not (adblockers, etc.), is tallied here.
imps delivered: Impressions Delivered. How many times was my ad served to readers? (Successfully or not.)
cpm: Cost per thousand impressions. How much I'm paying per impression, by the thousand.
clicks: How many people actually clicked that link and visited my site?
ctr: Click-through-rate: What percentage of impressions resulted in a click on the ad, in %?
cpc: Cost-per-click. How much money am I spending per person actually visiting my site due to ads?

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Background: In a past career, market research and development was one of my jobs. I've done statistical and strategic market analysis for a few organizations, as part of their research and marketing campaigns.

/r/Fantasy has just shy of 82k subscribers as of today, with a daily peak user count at any given time of approximately 350-450.

A $10.00 represents a very modest advertisement campaign, a 'tester' to determine the cost effectiveness of the effort.

Setting up the advertisement took approximately 10 minutes. In most markets on Reddit, one cannot instantly advertise. The advertisement for From Winter's Ashes had a lead-in time of approximately 28 days after acceptance.

Analysis: Reddit provides modest return on investment in efficacy. Despite a highly targeted audience, the very high technical base of Reddit users coupled with the age demographics of the site means that an anticipated 12-40% of users by demographic will have adblocker software installed.

The inventory of advertisement for a given subreddit of /r/Fantasy's size appears to be between 4 and 8 rotated advertisements at any given time.

In 12 days running, the promotion has generated 2000 impressions, that represents approximately 167 impressions displayed a day, with a click given once every few days.

Click-through rating is entirely middle of the road: Managing major Google advertising and Yellow Pages Online advertising, the *realistic* target of any online display ad campaign is %0.2-%0.4 percent. (Anyone who offers you greater than a 2% CTR rating is LYYYYYING, or obfuscating that they're talking about *Search* advertising, not *Display*.)

Reddit's reasonably consistent around the 0.3% mark, which puts them at middle of the pack for what I'd expect on a targeted display ad campaign.

Cost Per Click is ultimately my most important metric in this equation. At $0.34 per (actual human?*) viewer, and with a conversion rate of about 12% overall from landing on chapter 1.0 to reading through all of chapter 1.3 in a sitting, the cost per actual dedicated human reader to me is approximately $2.83.

For those of you good folks making real money from your webserials and are willing to talk turkey, what's your conversion rate from First chapter through fourth, and what percentile of your readership monthly contributes money via Patreon and/or PayPal?

From Winter's Ashes: A Detective with nothing left to lose, against a Necromancer with a world to gain.

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Responses

  1. Wildbow (Member)

    Posted 1 year ago

    For those of you good folks making real money from your webserials and are willing to talk turkey, what's your conversion rate from First chapter through fourth, and what percentile of your readership monthly contributes money via Patreon and/or PayPal?

    As of right now I have about 5,000 steady readers. Of those, about 400 donate or subscribe on Patreon in a given month. Remove the ones who pay a negligible amount ($1-2) and it's probably closer to 300 or 350.

    Most of my non-Patreon payments are from readers who've finished the story and make a one-time payment. Some will outright state they estimated the total length of the story in books and felt they should pay me in what they would pay for an equivalent number of books. They tend to underestimate, but those donations tend to be $80-250.

    Of the 177,000 readers who viewed 1.1 specifically, 92,000 went on to 1.2, 81,000 went on to 1.3, and 70,300 went on to 1.4.

  2. Chrysalis (Member)

    Posted 1 year ago

    Wildbow, out of curiosity - are those the stats for Worm?

    Anathema, a web serial about the effect superpowers would have on our world. http://anathemaserial.wordpress.com/
  3. Wildbow (Member)

    Posted 1 year ago

    Yes. Sorry to be unclear. Once you bring other serials into it, the numbers get muddier when talking about readership sizes.

    Worm 1.1: 177,000
    Worm 1.2: 92,000
    Worm 1.3: 81,000
    Worm 1.4: 70,300

    Pact 1.1: 106,000
    Pact 1.2: 28,500
    Pact 1.3: 25,000
    Pact 1.4: 23,800

    Twig 1.1: 36,000
    Twig 1.2: 15,045
    Twig 1.3: 12,042
    Twig 1.4: 10,917

    I think it's a rule that as a serial sits 'finished' for a while, the people rereading it will smooth over the curve from chapters 1.1-1.4.

  4. t4nky (Member)

    Posted 1 year ago

    So would you reccomend Reddit ads? Or are there better places to spend $10? When my next Patreon check comes in, I think I might spend some or all of it on advertising.

    "An uneducated man may rob a rail car. An educated man can steal the railway."
    https://nowhereislanduniversity.wordpress.com/
  5. Patrick Rochefort (Member)

    Posted 1 year ago

    t4nky: Overall, I'd say that Reddit provides middle-of-the-road support with targeted display ad performance. As such, if you factor in a targeted subreddit (because that's generally how you will advertise on Reddit for best results), you'll see a 0.3% click-through rate.

    I'll do some business case math for it later this week with Wildbow's generously provided numbers. (Just got done with a nine hour drive. Math tomorrow.)

    From Winter's Ashes: A Detective with nothing left to lose, against a Necromancer with a world to gain.
  6. t4nky (Member)

    Posted 1 year ago

    Thanks. This would be a real help, because I'm about to make money that isn't chump change (like, potentially getting ice cream and still have money left over cash) and I'm considering investing it.

    Also, I'm assuming that Reddit adds would be better than Google adds, right?

    "An uneducated man may rob a rail car. An educated man can steal the railway."
    https://nowhereislanduniversity.wordpress.com/
  7. Patrick Rochefort (Member)

    Posted 1 year ago

    t4nky: I honestly don't know. I think that you'll always have better luck with targeted advertising when it comes to webfiction, because I don't think many people (yet) are google searching for "I want to read some web fiction today". But right now the field is too new for me to do more than provide my educated guess.

    With Reddit subreddit-specific advertising, you *know* that you're targeting, or at least general-area-ing, your audience.

    Good work with keywords might help on Google, but you'd want a good idea of what they were searching *for*.

    Helpful for managing and establishing your brand, though! For example, a google search of 'Wildbow' will give you five pages of results before you hit one that isn't Pact/Worm/Etc. Probably be a different story if someplace opened up with a name like "Wildbow Archery Lanes". So if your name or serial is easy to mistake, you'd want to consider how much it would be doing to cement your brand.

    From Winter's Ashes: A Detective with nothing left to lose, against a Necromancer with a world to gain.
  8. Patrick Rochefort (Member)

    Posted 1 year ago

    budget spent imps purchased imps delivered cpm clicks ctr cpc
    $10.00 $4.24 10,000 4,242 $1.00 12 0.283 $0.35

    A quick update on the numbers, as I hit the 40% point in the campaign: Not much change, still middle-of-the-road.

    Next week, I'll be reporting back with marketing stats for advertising on Facebook.

    From Winter's Ashes: A Detective with nothing left to lose, against a Necromancer with a world to gain.
  9. Patrick Rochefort (Member)

    Posted 1 year ago

    With the long tail of the campaign slowly petering out, here's what the numbers look like today:

    budget spent imps purchased imps delivered cpm clicks ctr cpc
    $10.00 $8.69 10,000 8,695 $1.00 17 0.196 $0.51

    Cost per click has been steadily rising, while the click-thru rate drops as I reach audience exhaustion on a modest-sized subreddit.

    From Winter's Ashes: A Detective with nothing left to lose, against a Necromancer with a world to gain.

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