Here’s how you can understand how much your competitors are spending on ads ⬇️ Also check out for

Key Concepts

• CPM (Cost Per Mille/Thousand Impressions): The cost an advertiser pays for one thousand views or impressions of an advertisement.
• Impressions: The number of times an advertisement is displayed.
• Cost Per Conversion: The cost incurred to acquire one conversion (e.g., lead, sale).
• Reverse Engineering (Ad Spend): Estimating an ad’s spending based on publicly available data like impressions.
• Lead Magnet: A free item or resource offered in exchange for contact information (typically an email address).

Estimating Ad Spend Without Access to Ad Accounts

The core premise presented is the ability to estimate an advertiser’s spending and potential conversion rates without direct access to their ad account data. This is achieved by analyzing publicly visible information, specifically the number of impressions an ad receives. The method relies on informed guesswork combined with understanding industry benchmarks for CPM (Cost Per Mille).

Analyzing Impressions & Calculating Potential Spend

The example used centers around an ad from Brock Johnson, displaying “41,294 views.” This figure is interpreted as the number of impressions the ad has received. The speaker emphasizes that this single data point is sufficient to begin estimating ad spend. The process involves two key steps:

1. Estimating CPM: The speaker estimates a CPM of $20, based on personal experience with similar ad campaigns. CPM is defined as the cost for one thousand impressions.
2. Calculating Total Spend: The estimated CPM is then multiplied by the number of impressions (41,000) divided by 1000. This calculation ($20 * 41,000 / 1000) results in an estimated ad spend of $820.

Inferring Conversion Rates

Beyond spend, the method extends to estimating conversion rates. The speaker notes the ad leads to a landing page offering a free lead magnet. This suggests a relatively low cost per conversion. A guessed cost per conversion of $5 is used.

The calculation to estimate conversions is: Total Spend ($820) / Cost Per Conversion ($5) = Estimated Conversions (164).

Therefore, the ad is estimated to have generated approximately 164 conversions. While profitability cannot be definitively determined from this data alone, the speaker argues it suggests the ad is meeting the advertiser’s objectives.

Validation & Creator Confirmation

Crucially, the speaker states they tagged Brock Johnson (the advertiser) on LinkedIn with these estimations. Johnson reportedly confirmed the accuracy of the figures, lending credibility to the methodology. As stated by the speaker, Johnson confirmed the numbers were “pretty darn accurate.”

Practical Guidelines & Considerations

The speaker provides a practical guideline: avoid analyzing ads with fewer than a couple hundred impressions. Ads with low impression counts are less likely to provide reliable data for estimation.

The method is presented as a “ballpark” estimate, acknowledging the inherent limitations of guesswork. The accuracy relies heavily on the accuracy of the CPM estimate, which is influenced by factors like targeting, ad platform, and industry.

Logical Flow & Synthesis

The video progresses logically from identifying a publicly available data point (impressions) to demonstrating a step-by-step process for estimating ad spend and conversion rates. The inclusion of creator confirmation strengthens the argument and provides real-world validation. The final guideline regarding minimum impressions reinforces the importance of data reliability.

The main takeaway is that valuable insights into competitor ad performance can be gleaned from publicly available data, even without access to their ad accounts. This allows marketers to understand market activity and potentially benchmark their own campaigns.