We all skills important affiliates are.
However, without advertisers, there would be nothing to market .
You’ve read it.
Without advertisers, online advertising simply wouldn’t exist.
They’re those developing the content and that they are vital business players.
Here’s a pictograph showing the position of every entity within the market:
affiliate marketing flow
They’re also liable for most restrictions you see when applying to a suggestion .
The type of traffic you’ll send
The places where you’ll run their offers
The creatives you’re allowed to use
The money you’ll make from them
In today’s highly competitive mobile advertising market, performance is everything.
Advertisers pays using different payment methods:
Per Action: CPA/CPI/CPL – Acquisitions and downloads bring higher value to the advertiser because the user must actually show they’re curious about acquiring the merchandise
Per Click: CPC – Clicks only show a small interest which will or not become a conversion
Per 1000 Impressions: CPM – Impressions are the most cost effective since they carry less value to the advertiser. A user can encounter adverts without even watching them, which seems to be a waste of the advertiser’s money
That being said, advertisers have a full range of price models to settle on from.
However, if they need to realize results while spending the smallest amount amount of money possible, they ought to choose the primary option, referred to as CPA or CPI.
Let’s Dive Deeper Into the CPA Waters!
Cost per Action (CPA) is that the price an advertiser pays for a selected action on their advert.
That action is typically a sale or a product subscription.
The advertiser is that the one specifying which action should be performed by the user so as for the publisher to be paid.
As aforementioned, this method is useful both for the advertiser and publisher.
Advertisers only empty their pockets when their ad has been seen, clicked on, and therefore the user has completed a successful action (sale or subscription).
If you’re a strong publisher (let’s imagine you’re an influential Instagram star with plenty of followers that love your posts) CPA is ideal for you.
You’ll earn tons of cash if you get your viewers to subscribe a particular product, thanks to the very fact that CPA payouts are much above those of CPM or CPC.
Advertisers pay far more for this model because users are literally bringing them instant profit.
Advertisers got to manage their budget very carefully when choosing a CPA model.
How do They Manage the CPA model?
They calculate the typical Revenue Per User (ARPU).
This value represents the typical money they earn from users purchasing their service.
The CPA they’re willing to pay must be less than the ARPU.
The difference between these two values are going to be the advertiser’s margin.
They may plan to cut you as a source of traffic.
They may lower the CPA (payout) to extend their return on investment.
In subscription products, advertisers want users that renew the subscription week after week without ever cancelling the merchandise .
This is why it’s important to adapt the ads to the sort of website where you’re promoting them.
Some advertisers will say they need their gaming products promoted on gaming websites, as they know those users are far more likely to become engaged and excited with their product.
Another pricing model which will be considered as CPA is Cost per Lead (CPL).
This is a more specific sort of cost per action.
Here, the action required is that the delivery of a replacement cause the advertiser.
This can be done by submitting an email address or filling a form that needs more info.
What’s a legitimate Lead?
That’s the advertiser’s decision to form .
Indeed, they’re those who know what’s or isn’t considered a legitimate lead.
If their requirement is that the user inserts their name and email, they’ll confirm whether these are real ones and not a bunch of made up words.
What if the data provided is fake?
Advertisers won’t buy those leads.
It’s that simple!
Advertisers want quality traffic.
This is their main goal.
However, they don’t want you to run their campaigns if you’ve got a mean of fifty persons visiting your website monthly .
Before they know if your traffic has quality, the sole metric they will analyze is that the amount of traffic you’ll deliver.
Volume – An Advertiser’s First and Only Love
Advertisers always ask about volume.
It’s their mantra.
With no other metric to research , volume will show advertisers what percentage potential users you’ll be ready to drive to their products.
If you can, provide your Affiliate Manager with the typical numbers you’re making with other networks.
When advertisers want to urge large volumes to urge visibility, the campaign usually:
Allows incentivized traffic
Affiliates that use incentivized offers already know the most goal is to urge the maximum amount traffic as possible
Has a higher payout
With higher payouts the goal is to urge larger volumes
Higher payouts are cool and every one , but how are they different for Smartlink and Single Offers?
Smartlink: if the conversion rate is analogous for all advertisers, higher payouts mean better performance which results in higher volumes.
Single Offers: with higher payouts, advertisers expect to possess a better number of interested affiliates which suggests higher volumes.
Traffic Quality – Go High or head home
When advertisers have enough data, they’ll search for quality traffic.
What does that even mean?
Users that subscribe for an extended time
Users that insert their data and become consumers of the advertiser’s products
But how can they get these users?
Block inferiority traffic sources – They’ve got info about the sort of traffic each affiliate is sending and should prefer to block some
Use tools to detect fraud traffic. These traffic sources are going to be easily blocked
Create a whitelist (e.g. allowing only Media Buying traffic, webmasters with sites associated with the offer’s content) with affiliates sending better quality users
Block incentivized traffic
Block spam traffic
Whether the goal is volume or quality, fraud is poisonous.
In fact, fraudulent and non compliant activities will drive advertisers crazy.
Advertisers are often fined for these shenanigans and force you to pay up!
This is why it’s crucial to respect the regulations and follow the principles .
What do advertisers want?
Great partners to figure with!
When do they need them?
I hope all knowledge-thirsty affiliates are ready to learn more about the opposite side of the struggle.
I know that — after reading this text — you’ll be ready to understand why each offer has different requirements.
Wondering if this is often Game Over?
The Mobidea Academy is gonna show you the second a part of this advertising fun fest!
Let’s keep traffic flowing to place a smile on advertisers everywhere the world!