The other weekend I ran an experiment with Google AdWords to see if I could max out my Dropbox referrals to get an extra 16GB of free storage using my free £75 AdWords voucher. This is the same hack that Vladik Rikhter blogged about back in September 2011; and with a ton of people doing the same following Vladik’s post I wanted to see if it still worked. Short answer: yes it does
For those that don’t know what Dropbox is, it’s an online service for backing up, synching and sharing files and has clients for Web, Windows, OSX, Linux, iPhone, iPad, Android and Blackberry. The basic service gives you 2GB of storage for free (with paid plans offering more storage) and you can earn up to an extra 16GB of free storage through referrals (500MB per referral). If you want to sync files to have them available on multiple devices, or want to share files with other people it’s incredibly useful.
I just have the basic plan and had zero referrals before I started the AdWords campaign so needed 32 referrals to reach the 16GB maximum. I ran the campaign over the weekend of 14-15 April 2012, switching it off at around 6am on Monday 16 April 2012, and gained 59 referrals – more than enough for the extra 16GB of free storage.
The Figures
Ad Impressions: 21,141
Click Thru’s: 484
Click Thru Rate: 2.29%
Average Cost Per Click: £0.09
Total Ad Spend: £44.73
From the 484 click thru’s this generated the following numbers:
Total Joined Dropbox: 83
Total Installed Dropbox: 59
Total Ineligible: 1
Abandonment Rate: 28.91% (24 not installed / 83 joined)
Conversion Rate: 12.19% (59 installs / 484 click thru’s)
Cost Per Conversion: £0.79 (£44.73 ad spend / 59 installs)
NB: you only get the referral bonus if someone installs Dropbox after joining.
It’s the first time I’d used AdWords and the stats geek in me found the numbers really interesting. From running this short experiment you can see how online advertising costs could soon mount up and why targeted advertising to help increase that magic “conversion rate” is so appealing.














