I've had my DTC makeup brand company for a year now and we've achieved all of our sales 100% organically between our small community of Instagram followers (about 7K followers) and our handful of retail partners (we're at Anthropologie.com, Saks and a few other reputable retailers). I'm determined to learn all the basics of growth marketing myself before wasting another penny on freelancers (I'd rather use the money I'd pay them on a retainer to make mistakes myself but actually learn enough to hire better people in the future and partake in the strategy instead of blindly trusting anyone.
I did a deep dive into how Google Paid Search ads work and starting to get the gist of it.
My products are $22-$32, with average basket size around $50 in the last 90 days. Based on my realistic estimate and googling industry averages, the beauty industry seems to get a 2%-3% conversion rate on paid search ads. Based on my unit economics I would need about 10% conversion rate at $2.5 CPC to break even!!! Not seeing how this will work for me.
I'd love to hear from other DTC brand marketers on the following questions:
- What conversion rates are you seeing?
- Are your Average CPCs in line with what Google says they are on the high end for the keywords you bid for? (to give you an example something like "Cream Blush" has a $3 CPC, but I need to bid higher than that because our quality score is lower than the big brands we compete against)
- Do you bother bidding for the main keywords describing your product as those keywords will likely be super expensive?
- Did you start seeing conversions from the get go, or did you have to sink a few thousands until you learned how to write better Ad copy? (I'm on day 3 and haven't gotten a conversion yet from my test ads).
- Have you seen better performance with Google Shopping Ads instead?
Appreciate any insight this community is willing to share to a newbie growth marketer with little wiggle room to make mistakes!
If your answer is super helpful I'll send you or your gf some free makeup (check us out www.minoribeauty.com)