Posted by Benis on 5/1/2019 3:37:00 PM (view original):
"They could hire a digital agency to run search and social campaigns for them for 10% of the marketing spend and get a 4x ROI"
Can you share where this is coming from? You're saying if they spend $5,000 on marketing that they will make $25,000? Meaning they will need to get 2,000 seasons at full price.
I've worked for a digital agency running search and social campaigns for several years - these are pretty standard benchmarks.
You're right, given the amount of available teams and the new user discount the actual ROI would be measured across a longer period of time rather than a one-time purchase. Campaign flighting would be contingent upon world openings and season schedules.
That being said, split the $5,000 investment and do $2,500 in each channel.
On social, assuming you're targeting a male sports-oriented audience age 20+, I'd say (pretty conservatively) that you can reach over 200,000 people on social and hit over a 1% clickthrough rate. Of those 2,000 people who clicked through, how many do you think would be willing to at least try the game for $4.95?
Search is a demand-driven channel, so you're operating on cost-per-click - if they can get a CPC anywhere between $2.50 and $4.00 (which isn't all that difficult assuming SEO issues aren't wrecking your quality score) then a $2,500 spend will net between 1,000 and 625 clicks. Conversion rate on search referrals is generally more-than-double what you see out of mobile display and social ad units (again, demand-driven channel, people are actively looking for things), so they may actually see more new users out of it than social despite the lower click count.
There are 321 job openings in Allen DIII right now. Just saying. If they invest $5,000 to fill that world they immediately get over $1,500 return, and then collect payments for more than twice the discounted amount fo any retained customer every 30 days moving forward.
Take all of this with a large grain of salt as I didn't use any campaign planning tools or keyword planners for this, but all of this is to say that they could make WIS popular again with a small investment. They just don't want to.