When it comes to running Facebook ads one of the biggest questions I get is can it be ROI positive. When streaming platforms pay you a fraction of a cent per stream it may not initially make sense to send traffic that can cost 50 times more than the amount you’d make on a stream. But I am here to tell you profiting off streaming royalties generated by Facebook Ads is possible and this is why.
- Lifetime value of direct traffic. We calculated the lifetime value of the original traffic spaced out over the life of a song. This is assuming the song is objectively good, targeting is on point, and everything is set up correctly.
You will probably not make money off the original traffic but you will definitely generate a reasonable bit of income, but most likely you are still operating at a loss, so now what?
2. The algorithm favors positive engagement. Running ads to your music will give your music great engagement. This will help get your music on algorithmic playlists which offers your song limitless opportunities to reach new ears. This is where you will make profit in the long term, and Facebook ads will help get you there.
3. Brand equity. Each time you drive traffic to your music you are reaching new potential fans. These fans can stick around for future releases, so while you may have had to pay to get them their the first time, they will be listening to your future releases for free. You can also collect emails and engage in email marketing while doing this and build a free traffic resource for your brand overtime.
You can Profit with Facebook Ads
Overall profiting with Facebook ads on streaming services like Spotify is all about the long tail. You will not create wealth quickly, but in the long run you can be profitable.
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