Can someone help me understand the Shop Cash Offers Ad Campaigns in the Shop app? I don’t see how this could be profitable even if it is bringing in new customers:
With the campaign spending set at a minimum $10 per day,
-The highest minimum order I can restrict the sales by is $20.
-It is saying I will pay $15 for each conversion.
-So I am paying $15 for a $20 sale if I run this campaign.
-The estimated return on ad spending shows $2.2 - $3.5, which is very low.
-Increasing the daily spending doesn’t help because the cost per conversion goes up as well.
How is this profitable? Even if they spend $50, I will most likely lose money if I pay out $15.
Is the idea that I will have new customers who may buy again? Considering that, It still seems unreasonable. I can run Google Ads all day and spend $20, but I will get 5-6 conversions and end up with profit and new customers.