Reddit Ads experiment - how much we paid for 100 clicks
by JoshOur Reddit Ads experiment has now been running for 4 days.
Our stats until now:
- We had around 40k impressions
- From that 40k people that saw our ad, 100 people clicked on it - that's a CTR of 0.25% (the exact value from Reddit Ads is 0.247%)
- From that 100 people, 3 people signed up for our beta phase. That's a conversion rate of 3%
- Our total amount of ad budget spent so far is $23.11
- Vaguely speaking, this means that one beta signup cost us $7.50 via Reddit Ads
Conclusions:
- The three beta signups all happened on the first and second day. I do not know why that "stopped" after that
- I would say that Reddit Ads could definitely a candidate for running our ads, but I need to evaluate other ways to be able to compare them (will probably try Facebook Ads)
- 7.50$ per beta sign-up is too much, and the key factor here is probably the conversion rate
- I think the CTR is okay, but I do not have enough experience here. Maybe the copywriting can be improved and a clearer CTA can be added to the ad
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Question! Your Excelly website says you sell to companies, so B2B. But you don't have pricing on your website. When I don't see pricing, it makes me think it's a fun side project and not a business- but that might be just me.
$7.50/warm lead for a B2C product with a low LTV is probably not good, but, $7.50/warm lead for a B2B product with a high LTV and a land-and-expand strategy is amazing.
But $7.50/warm lead for a completely free product that looks like it doesn't have customers and no path to monetization is prob not good.
Perhaps make your site seem more official, credible, include pricing tiers - even if the signup doesnt work but you make people fill out a quick form or just send you an email (low effort for you).
If you're genuinely set on it being a beta and not taking money right now, your goal should prob be around product stickiness, finding PMF, and getting initial testimonials. When the 1 person per day signs up - call them immediately and tell them you can do a high-touch onboarding. Also, at this stage it feels like ads give you a generic potential user, when maybe it would be more fitting to do individual outreach on LinkedIn or going to Apollo/etc and finding a few hundred people with exactly the title and industry and size of company that would be attainable, and writing personalized emails to them. At this stage quality > quantity.
Right now if a high-ranking biz exec lands on your site they probably think to themselves "this is useful, but I have a budget and a I require customer support and documentation and I want to make sure this would work across my 20 analysts, and right now this seems like a pre-seed, pre-revenue side project. Cool, but I can't bring that into my $500M world-class org."
Random side-note: Is Slack where business analysts want to go for this kind of thing? I'd imagine their managers want them spending less time in Slack, not more. Perhaps you can dig into HOW the analysts want to get these formulas - for example there is are 'add-ons' inside Excel and that might feel more native to the potential users. Tbh im thinking here "The choice to put this in Slack feels like it came from technical simplicity rather than user research".
I'm rambling.. Looks great though! Solid idea, beautiful landing page
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When I don't see pricing, I assume that pricing will be "If you have to ask, you can't afford it."
And I absolutely refuse to sign up for any beta that I would end up relying on to any degree if I did use it, unless I know how much it's going to cost long term.
Not sure if that's why OP didn't get many sign-ups, but it could be part of it.
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Yeah, me too. I also suspect that the quote will be based on how much they think I can afford...
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I am still wondering about how good Reddit is at delivery. In the past, I always hated every company that had and ad there because it was always in my face.
You don't want to be that annoying brand... Well, you might, but it has to be conscious decision.
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$0.23 CPC doesn't sound that bad to me. I think you can get it lower on Reddit, but it's still a lot better than other platforms like AdWords where it's tough to get any clicks for under a dollar.
$7.50 is a lot to spend on a beta signup, so maybe it'd be a good idea to try again once you launch a paid version. Who knows, maybe the conversion rate won't drop that much and you'll turn a profit on the same CPC.
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yeah, $7.5 sounds insane
what other promotional methods have you tried? -
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Reddit is super amazing in currently i have seen it is providing the good result for advertisers to capture the market.
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Reddit is a true goldmine - both in terms of targeting and in terms of costs.
I truly believe that once cracking the language and format, a product can get plenty of traction there. -
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What was the bounce rate like on the clicks you got from Reddit?
My fear with Reddit ads is that you get a lot of people (myself included) that accidentally click ads because they are just clicking all everything in their timeline to open up an image / video. -
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Great information!
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Based on my experience, your numbers will get better as time goes on!
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I am running an experiment right now as well but I look forward to seeing the results
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Just wanted to chime in again. The CTR seems to be unusually low compared to other platforms. Having that said, I got a CTR of about 0.29% with $40 spent and a CPC of $1.12. Also giving away a free lead magnet.
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Interesting, thanks for sharing it. I've been thinking about trying Reddit ads before. I remember there being a few different ad types like native posts etc. Mind sharing what you used?
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Have you also tried posting normally on Reddit? I wrote a guide about how to find your first customers on Reddit, which could be useful. Let me know what you think!
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Thanks for the guide. After reading I found a subreddit whose rules don't forbid closed-source software.
I'm working on a private file syncing tool, and the most relevant subreddit's rule #1 says they don't want any links to closed-source software. In hindsight, I'm not surprised, as those paranoid about privacy tend to be open-source only. I wouldn't mind open-sourcing, but I have a family to feed and haven't seen a viable business model that would work for me.
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The costs are pretty high, I did not expect it. I still have to try it out for my own product :)
