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Questions for Music Ad Gurus: Is your strategy profitable?

Guru: "Good news: I've started a business and I can teach you how to start one too."


Savvy Person: "That's great. I suppose I should ask though: is your business profitable?"


Guru: "Of course it is! Here look; on product A, I spent $100 to advertise it with Facebook and Instagram ads and I've made $150 from product A."


Savvy Person: "Heyo000! Congratulations on your success with product A! That's really hard to pull off. But I guess I mean, is the business, you know, as a whole, profitable?"


Guru: "Yeah, I just said that it was; remember the whole product A thing I was talking about?"


Savvy Person: "Oh, my bad; you only have one product.


Guru: "What? No, I have many products.


Savvy Person: "Oh; um, ok. So, do you have advertising budgets for each product?"


Guru: "Duh, yes."


Savvy Person: "Right. So, I guess the question is, is your business as a whole profitable? Like, when you add up all your ad spend for each product and you add up all your sales from each product, have you made more than you've spent?"


Guru: "I don't do that."


Savvy Person: "You don't do what?"

Guru: "I don't add it all up like that. Most of my products have lost money given the ad spend. I like to just focus on product A."


Savvy Person: "........"


Guru: "Look, what I mean is that the business can be profitable. Take product A for example, I've made back more than I spent on it."


Savvy Person: "But have you considered that part of the sales from product A may have come from your promotional efforts from your other products? In that case, it wouldn't really be right to offset product A's ad spend with those sales, meaning even product A may have been unprofitable, if you think about it."


Guru: ".........."


Savvy Person: "Look, clearly you know how to work with data; you show it in your videos all the time. You should make a video where you tally up everything you've paid in advertising so far for all your products and then show how much you've made in total so far, plus you could include some additional revenue because you'd probably still get some sales even if you turned off your ads completely today. If you did that, it would be a really clear answer to whether your business strategy is a good one and, if it is a good one, it would be a really compelling way to get people to buy in to your strategy."


Guru: "...........I'm gonna focus on product A."


Running social media ads sucks as a way for aspiring artists to begin growing a real community around their music. We're trying something different where we focus on connecting with other artists and the DIY process. To learn more, check out our podcast on Spotify called We Could Blow Up.





1 Comment


mark
Feb 13, 2023

Just read your first three posts. Good stuff and great points. I‘ve dabbled in various forms of music promotion.. not really with the intention Of ‘blowing up’, but more like attempting to see what works for me and my style of music. Really just trying to find out who the potential audience for my strange blend of styles might be. I can say that it’s hard to justify the ad spend on FB... but as someone who started from zero audience.. it was (for me) a better solution in terms of getting actual real life humans To follow, listen repeatedly, etc. I may incorporate it again in the future for lack of a better option. Anyway, great points and a…

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