Short & Long-term Benefits Online Course Ads

Introduction

Many online education businesses stumble in their advertising efforts because they often prioritize short-term gains over the broader, long-term perspective.

Creating, managing and optimizing ads all demand significant time and financial resources. This reality can make online advertising particularly challenging compared to other marketing avenues, as the upfront costs can feel risker.

However, to truly succeed in promoting your online course, you have to balance both short and long-term impacts. This entails a commitment to continuous improvement, allowing you to fully realize the benefits of advertising.

This doesn’t imply waiting indefinitely for results and giving in to the notion that marketing takes time. Rather, it emphasizes driving optimal outcomes upfront while remaining mindful of the delayed advantages that manifest 3, 6 or even 12 months down the line.

Let’s dive in.

Short-term Benefits of Running Ads for Your Online Course

When introducing online ads after establishing a successful presence online on organic channels like YouTube, SEO or Instagram, you’re likely tapping into a warm audience already invested in your course offers.

These individuals may be fence-sitters, ready to buy but haven’t taken the plunge yet. Running ads can effectively convert them into paying customers, yielding 3 main benefits.

By directing ads to this pre-engaged audience, you can:

boost traffic and leads to your platform
expand your customer base
increase your revenue

Monitor these short-term benefits closely to ensure they don’t compromise your cash flow. Ideally, your advertising expenditures should be balanced by corresponding sales on a monthly basis. So if you invest $1,500 in ads, the aim is to generate $1,500 in attributed sales.

But why would you spend $1,500 just to generate $1,500 in return?

This is where we start to get into the long-term benefits of running ads.

Long-term Benefits of Running Ads for Your Online Course

When you invest in advertising, the immediate outcomes like purchases and revenue are clear and direct.

But there are also secondary benefits, often overlooked but relevant for long-term business growth. These secondary benefits, or byproducts of advertising, have compounding effects over time.

Let’s take a look at an example where you allocate $1,500 per month to paid ads.

From this investment, you generate 500 leads and secure 25 sales, with an average order value of $60, resulting in $1,500.

At first glance, it seems like you’ve only managed to break even because your revenue matches your ad spend.

But it’s important to recognize the delayed returns associated with this investment. In addition to immediate sales, your advertising has brought in new customers, leads, and website visitors, providing valuable pixel data for retargeting purposes.

Moreover, you’ve gained new followers and increased engagement, expanding your audience reach and potential for future conversions.

Think of it this way. While these individuals may not have converted immediately, they represent opportunities for future sales in the coming months.

Therefore, while you may not have achieved a direct profit in the current month, the groundwork laid by your ads sets the stage for significant return in the future.

While it may seem like you’ve only got to the point of breaking even in the short-term, the true value of advertising is in its long-term compounding effects.

This highlights the importance of the 2 key principles you should keep in mind for your advertising.

1. Breaking even on a monthly basis allows you to sustain your advertising efforts.

by consistently reinvesting in ads, you can continue to reap the benefits over time.

2. Consistency is a MUST for compounding your ROI month after month.

maintain a steady presence in the market to maximize the long-term impact of your advertising.

Short-term vs Long-term KPIs

Before launching any advertising campaign, establish Key Performance Indicators (KPIs) that align with your business objectives.

These KPIs should be tailored to both short-term and long-term goals, as different metrics are more relevant at different stages of your advertising efforts.

Short-term KPIs are your go-to for immediate insights into your online course sales growth.

The short-term metrics you should consider:

– Cost per Click

the amount spent on each click generated by your ads.

– Cost per Lead (if applicable)

the expense incurred for acquiring each potential customer’s contact information.

– Cost per Purchase

the expenditure for acquiring each successful sale.

– Sales

the total number of transactions generated through your ads.

– Ad Profit

calculated as sales minus ad spend, indicating the profitability of your advertising efforts.

– ROAS

the revenue generated for every dollar spent on advertising.

– MER

how much you spend on marketing compared to how much you make from it.

Assess these short-term KPIs on a weekly and monthly basis to get valuable insights, especially concerning your cash flow management.

On the other hand, you can refer to long-term KPIs to evaluate sustained growth over time, typically after months of continuous advertising and optimization.

The long-term metrics you should consider:

– Email List Size

the total number of subscribers to your email newsletter, indicative of potential leads and prospects.

– Social Media Followers

the count of individuals engaging with your brand across various social platforms, reflecting brand awareness and audience reach.

– Traffic

the total volume of visitors to your website or landing pages, illustrating the effectiveness of your advertising in driving online awareness over time.

– Revenue

the total income generated from sales over an extended period, demonstrating the overall financial performance.

– New Customer Growth

the increase in the number of first-time buyers or clients, indicating market expansion and customer acquisition.

– Repeat Purchases

the frequency at which existing customers make additional purchases, highlighting customer loyalty and satisfaction.

– Net Profit

the overall profit after deducting all expenses, including advertising costs, illustrating the profitability of your business operations.

Monitor these long-term KPIs regularly to get insights into the sustainability and success of your advertising strategy, as well as the overall health of your business.

Conclusion

Consistently running ads for your online course, diligently managing your cash flow on a monthly basis, and committing to a process of ongoing improvement sets you up for noticeable short-term outcomes as well as substantial business growth over time.