Last month I’ve been playing around with Reddit Ads to see how much it would cost to acquire a new subscriber.
Nothing serious, just investing a few bucks to try an ad platform I’ve rarely used before.
The first thing I did was creating a conversion campaign and testing different creatives.
Redditors hate ads, so the goal was to make them look as native as possible:
Example: “I’m writing one new case study every week to help you get better at marketing”.
I then targeted relevant subreddits (startups, entrepreneur and marketing), added a filter for Tier 1 countries and launched the campaign 🚀
After a few days I took a look at the results.
Average CPC was around $0.10 and CTR 0.3%. But what really stood out was the CPL: I was able to acquire new email subscribers from Tier 1 countries for around $2 each.
Digging deeper, I was surprised to see where signups were coming from. Only a few were from the US, while the majority were from Canada, Australia and Netherlands.
I guess the US numbers were so low because I’was bidding at $0.10/click and I wasn’t competitive enough in that auction.
In the future, I could create a separate ad set for US only with a $0.20 bid.
Is a $2 CPL good? Well, I can't determine the LTV of a subscriber because I’m not selling anything right now.
But let’s say that I create a product and that 1/20 buy it. That would mean a $40 CPA. Any LTV higher than that would work.