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Exploring Punt's X Ads Performance and Unit Economics

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We recently ran an ad campaign on X to test its viability for driving signups for Punt. Here's a breakdown of our results, insights, and projections for scaling up.

Ad Performance Metrics

  • Impressions: 54,715
  • Ad Spend: $173.91
  • Unique Clicks: 165
  • Click-Through Rate (CTR): 0.30%
  • Cost Per Click (CPC): $1.05
  • Trial Signups: 12 (7.27% conversion rate from clicks)
  • Conversion to Paid (Expected): 33% of trials

Unit Economics

From the 12 trial signups, we expect 33% to convert into paid customers, resulting in approximately 4 paid customers. With a $30/month subscription or $360 annually, the projected revenue from these customers is $1,440 annually. Here's the math for key metrics:

  • Customer Acquisition Cost (CAC): $173.91 ÷ 4 = $43.92 per customer
  • Months to Payback: CAC ÷ Monthly Revenue = $43.92 ÷ $30 = 1.46 months

Scaling Up with $10,000 Monthly Budget

If we invest $10,000 per month in X ads, here's what we could achieve based on the current performance:

  • Clicks: 9,488
  • Trial Signups: 690
  • Paid Customers: 228
  • Projected Annual Revenue: 228 × $360 = $81,973
  • Scaled CAC: Remains consistent at $43.92
  • Months to Payback: Remains consistent at 1.46 months

Takeaways

While the CTR (0.30%) and conversion rate (7.27%) could be improved, the cost per click ($1.05) and CAC ($43.92) are reasonable for our industry. With a payback period of just 1.46 months, the ads are already showing potential to deliver strong ROI. Scaling up with a $10K monthly ad budget could bring in nearly $82K in annual revenue, reinforcing that this channel is worth further exploration.

We’ll continue to optimize our campaigns to improve CTR, conversion rates, and overall efficiency, ensuring we maximize the impact of our marketing dollars. Stay tuned for updates as we refine our strategy!