Participants in the arbitration market

This is the second lesson of the basic course on mobile arbitration , in which you will receive a general set of knowledge about mobile arbitration, fundamental concepts and a set of tools that are necessary for any arbitrator, internet marketer or traffic manager.

Previous lessons: 1. What is arbitration?

In this lesson, we will look at the main participants in the arbitrage market: arbitrageurs, advertisers, partner networks and traffic sources. Let's tell how they interact with each other. Below will be both the video of the lesson and its text decoding.
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→ Presentation

To begin with, we will define each of the market participants.

Arbitrazhniki - people who buy paid traffic and attract it to the goods advertisers (offers). One person can attract traffic, teamwork in a group of arbitrators is also possible.

An advertiser is a customer who has a product and a need to promote this product. This is one of the most important links in the chain: the advertiser creates an offer (offer) on the market, allocates a budget for the promotion of this offer and at the same time bears all the reputational risks.

The process of communication of the arbitrator with the advertiser is often difficult to organize, so their communication is most often implemented through an affiliate network. Consider this market participant in more detail.

Affiliate Network

The affiliate network combines the functions of an intermediary and an aggregator: affiliate network managers communicate with arbitrators and with advertisers. Affiliate network brings together two market participants.

It is beneficial for an arbitrator to work with an advertiser through an affiliate network, because:

• The affiliate network assumes all risks of communication with the advertiser. The advertiser may delay payment or not pay money at all. In this case, the affiliate network is doing everything possible to ensure that the arbitrator receives the money and receives it quickly, since he needs to recoup the traffic that he bought.
• The partner network is a technological platform: it tracks the clicks and understands that it was a certain click that led to the sale of a certain product, and would pay the arbitrator who led the click. The affiliate network has the opportunity to provide statistics on the latest payments, as well as on the overall performance of the arbitrator.

Benefits for the advertiser are also obvious:

• The affiliate network communicates with the arbitrators and provides feedback from the advertiser;
• The partner network controls the traffic that attracts the arbitrator, as well as methods of attracting advertising and creatives.

Traffic sources

The last but no less important participant in the arbitration market is traffic sources.

There are many ad networks and advertising sites where arbitragers buy traffic and exchange money for impressions and clicks, which then turn into conversions. Traffic can be attracted to:

• social networks (VKontakte, Facebook, etc.);
• on mobile platforms (Startapp, InMobi, Mobfox);
• in search engines (Google, Yandex, Bing);
• in open and private sources;
• sources with the possibility of self-launching an advertising campaign, as well as automatic (self-service and managed).

Each source of traffic has certain specific features depending on:

• advertising formats
• targeting capabilities
• convenience of launching and setting up an advertising campaign: interface.

We will talk about all this later when we analyze the sources of traffic.

Tools to drive traffic

There is another element of the arbitrage market, which connects all the above participants and helps them work more efficiently. We are talking about various tools that are used by both arbitrageurs and affiliate networks with advertisers.

To launch and conduct more effective advertising campaigns, arbitrageurs use:

• traffic analytics trackers ( Binom , Thrive Tracker , Voluum );
• procurement optimization systems ( Iskander , Plarin , Kenshoo , Aitarget , Qwaya );
• systems for mass creative uploading and rate management (you can also use all of the above tools for this purpose).

Affiliate networks most often use advertising monitoring tools ( AdMobiSpy , Adplexity , Publer ) in order to look at how goods are advertised, and whether arbitragers use prohibited creatives.

Advertisers, in turn, use various tools in order to analyze the traffic that leads to them affiliate network. For example: AppMetrica , AppsFlyer , Adjust . For analytics, Storan uses Appannie , for fraud analysts use Forensiq , FraudScore (Clearflow) , Kraken , Fraudlogix , Kount , Fraudshields . About the comparison of these systems antifraud can be found here .

For greater clarity, we depict the work of the market in the form of a scheme:



According to the scheme, you are an arbitrazhnik and purchase traffic, which subsequently passes to the affiliate network, and then to the advertiser.

During the entire workflow, one or another market participant uses various tools that help everyone interact more effectively.

Conclusion

So, we reviewed the main participants in the arbitration market: arbitragers, advertisers, partner networks and traffic sources. We also found out that equally important elements of this market are tools that help all market participants interact and make their work more efficient.

The next lesson will be this Thursday, February 9th. In it we will understand how to measure the effectiveness of advertising campaigns.

You can ask any questions about arbitration in the comments or in our VKontakte group .