Conversion and payment types in traffic arbitration
This is the seventh 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:
In this lesson, we’ll tell you about the types of conversions and payments in traffic arbitration. More details on Conversion flow, SOI, DOI, deep conversions, as well as conversions in the mobile field.
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Presentation | Text transcript
Conversion flow is the user's path from the moment he enters the offer page until the user performs a specific action. When the user follows this path, a conversion occurs.
There are several classic schemes in lead generation: Single opt-in ( SOI ), Double opt-in ( DOI ), there are deeper and more specific conversions. There are special Conversion flow, which are applicable only to the mobile sphere: the installation of mobile applications or mobile subscriptions.
Let's talk about each of these types.
Let's start with basic and classic - SOI (single opt-in) . Conversion flow is counted when the user has filled out a questionnaire, form, application form on the site and clicked the “Ok” button.
Such leads may be of poor quality: the user is mistaken when filling out the questionnaire, or he fills in obviously false information. The advertiser lowers such leads: it is easy to make a fraud installation and conversion. Accordingly, the payment for them is low. On the other hand, the conversion is high and easy to test with small budgets in order to understand that the offer works.
Another classic conversion flow - DOI (double opt-in) is different in that the user performs two actions: he fills out an application and confirms it. Usually this is a link that comes to e-mail.
A common scheme in commodity arbitration: you fill out an application for the purchase of goods, you are called back to confirm the order, specify the details of delivery, payment, and so on. This is also called DOI. In mobile arbitration, installing an application and opening it is double opt-in. For this conversion flow CR will be lower - the scheme is more difficult for the user. Due to this, payments are usually higher, and the advertiser values ​​such leads and pays more.
Now let's talk a little about the classic methods of Conversion flow.
The advertiser sometimes pays not just for applications, leads, but for deeper actions in the event funnel inside his application or with his product.
For example: the advertiser pays only for users who have reached a certain level of the game or have been trained, or have filled out a questionnaire and downloaded an avatar on the dating website. Such users are better for the advertiser - they indicated interest in using the product. CR in this case is lower and more difficult to test the offer: spend more money on tests to get more data and wait for the conversion moment to occur. There are schemes when conversion occurs within a few days.
There are advertisers who pay for users who have achieved a certain KPI. Often there is a KPI on RR (Retention Rate): the advertiser is willing to pay for those users who, on average, return to the application on the second day, 20% of all established users. Either KPI can stand: at Cost Per Order (CPO) - the advertiser is ready to pay for users who, on average, will give CPO more than 1000 rubles. For advertisers, such users are more valuable, it pays more for them, but in this case it is more difficult to attract traffic: such a scheme is difficult for the user, and it is difficult for an arbitrator to analyze traffic in order to understand its quality. You need to gain a sufficient number of conversions, only after that to make decisions and draw conclusions.
Let's talk more about Conversion flow, which is specific for the mobile market. Due to the fact that there are mobile devices, there were conversion flow, which are applicable only to them. One of these is the installation of mobile applications. With the advent of mobile applications, advertisers pay for their installation.
Typical Conversion flow: the user downloads and opens the mobile application. At this point, the conversion counts, and you get paid. Of course, the same classic conversion flow as SOI and DOI are applicable for mobile traffic.
Also in the mobile there is a rare but interesting type of Conversion flow, like Pay per Call, when you get paid for the call. It exists in some countries and only with a certain type of traffic you can work with it, such as with Google, with Google Adwords, when a user clicks on an advertisement and immediately starts calling. Usually for each partner, for the arbitrator it is allocated its own phone number: when making a call to this phone number, it receives payment. Most often there is a call duration: you get paid for a call lasting 15 seconds or more.
The last type that is typical for mobile is mobile subscriptions. Due to the fact that there is such a service as SMS, a special conversion flow appeared: the user is using SMS, and you receive a conversion at the moment when the debit occurred, or he confirmed the subscription to the paid SMS, or confirmed the receipt of a paid SMS.
We analyze mobile subscriptions in more detail.
What mobile subscriptions are there? There are two types of how to deduct a certain amount of money from a user via SMS billing.
One of the bottom is called MO flow - the user sends a paid SMS. MO flow options:
Another type is MT flow , the user confirms receipt of paid sms. MT flow options:
After we talked about the types of Conversion flow, it is logical to discuss the types of payments: what we are paid for. One of them and the most popular one is pay for leads . We are paid for certain actions: registration, installation, filling out a questionnaire. There are such things as CPL (cost per lead) or CPI (cost per install) - this is all payment for leads.
There is a scheme of work, when we are paid not for leads, but for sales . For an advertiser, leads do not carry monetary value, and he must monetize them. When we receive payment for sales, we make a certain step towards the meeting, and it’s already easier for the advertiser to monetize these users. This is not necessarily the final sale: we can get paid for the first sale, for the first deposit in an online casino. The advertiser knows that he will pull out more payments from the user, therefore, he is ready to pay us for the first payment. A paying user costs more than a regular lead. A scheme is often practiced with goods: they pay for a test purchase, a subscription for one dollar, and then money is regularly written off from the user. Accordingly, we are paid for the first lead.
The latter scheme is more complicated, but more beneficial to the advertiser, it is called Revenue share : the advertiser shares with us the percentage of actual final sales.
Take an online casino: the advertiser is willing to pay 30-40% of each deposit. For comparison: according to the CPL model, the scheme would have looked like this - the advertiser is willing to pay us three thousand rubles for the user who made the first deposit. And on the revenue share, he pays for the deposits that users make, and pays part of these deposits to us. The advertiser bears no financial risks and only pays for those users who he already earns. This scheme is beneficial for the advertiser, but it is more difficult for an arbitrator to work with it: you need more money for tests, more tools for proper analytics and correct decision making.
In this lesson, we looked at the payment models and types of Conversion flow. In the next lesson we will describe how to buy advertising on the Internet, what models of advertising purchase exist.
You can ask any questions about arbitration in the comments or in our VKontakte group .
Previous lessons:
- What is arbitration
- Market participants
- Basic metrics and concepts
- Offers and verticals
- Partner Networks
- Traffic sources
In this lesson, we’ll tell you about the types of conversions and payments in traffic arbitration. More details on Conversion flow, SOI, DOI, deep conversions, as well as conversions in the mobile field.
')
Presentation | Text transcript
Conversion flow is the user's path from the moment he enters the offer page until the user performs a specific action. When the user follows this path, a conversion occurs.
There are several classic schemes in lead generation: Single opt-in ( SOI ), Double opt-in ( DOI ), there are deeper and more specific conversions. There are special Conversion flow, which are applicable only to the mobile sphere: the installation of mobile applications or mobile subscriptions.
Let's talk about each of these types.
SOI (single opt-in)
Let's start with basic and classic - SOI (single opt-in) . Conversion flow is counted when the user has filled out a questionnaire, form, application form on the site and clicked the “Ok” button.
Such leads may be of poor quality: the user is mistaken when filling out the questionnaire, or he fills in obviously false information. The advertiser lowers such leads: it is easy to make a fraud installation and conversion. Accordingly, the payment for them is low. On the other hand, the conversion is high and easy to test with small budgets in order to understand that the offer works.
DOI (double opt-in)
Another classic conversion flow - DOI (double opt-in) is different in that the user performs two actions: he fills out an application and confirms it. Usually this is a link that comes to e-mail.
A common scheme in commodity arbitration: you fill out an application for the purchase of goods, you are called back to confirm the order, specify the details of delivery, payment, and so on. This is also called DOI. In mobile arbitration, installing an application and opening it is double opt-in. For this conversion flow CR will be lower - the scheme is more difficult for the user. Due to this, payments are usually higher, and the advertiser values ​​such leads and pays more.
Deep conversion
Now let's talk a little about the classic methods of Conversion flow.
The advertiser sometimes pays not just for applications, leads, but for deeper actions in the event funnel inside his application or with his product.
For example: the advertiser pays only for users who have reached a certain level of the game or have been trained, or have filled out a questionnaire and downloaded an avatar on the dating website. Such users are better for the advertiser - they indicated interest in using the product. CR in this case is lower and more difficult to test the offer: spend more money on tests to get more data and wait for the conversion moment to occur. There are schemes when conversion occurs within a few days.
There are advertisers who pay for users who have achieved a certain KPI. Often there is a KPI on RR (Retention Rate): the advertiser is willing to pay for those users who, on average, return to the application on the second day, 20% of all established users. Either KPI can stand: at Cost Per Order (CPO) - the advertiser is ready to pay for users who, on average, will give CPO more than 1000 rubles. For advertisers, such users are more valuable, it pays more for them, but in this case it is more difficult to attract traffic: such a scheme is difficult for the user, and it is difficult for an arbitrator to analyze traffic in order to understand its quality. You need to gain a sufficient number of conversions, only after that to make decisions and draw conclusions.
Mobile Conversion flow
Let's talk more about Conversion flow, which is specific for the mobile market. Due to the fact that there are mobile devices, there were conversion flow, which are applicable only to them. One of these is the installation of mobile applications. With the advent of mobile applications, advertisers pay for their installation.
Typical Conversion flow: the user downloads and opens the mobile application. At this point, the conversion counts, and you get paid. Of course, the same classic conversion flow as SOI and DOI are applicable for mobile traffic.
Also in the mobile there is a rare but interesting type of Conversion flow, like Pay per Call, when you get paid for the call. It exists in some countries and only with a certain type of traffic you can work with it, such as with Google, with Google Adwords, when a user clicks on an advertisement and immediately starts calling. Usually for each partner, for the arbitrator it is allocated its own phone number: when making a call to this phone number, it receives payment. Most often there is a call duration: you get paid for a call lasting 15 seconds or more.
The last type that is typical for mobile is mobile subscriptions. Due to the fact that there is such a service as SMS, a special conversion flow appeared: the user is using SMS, and you receive a conversion at the moment when the debit occurred, or he confirmed the subscription to the paid SMS, or confirmed the receipt of a paid SMS.
We analyze mobile subscriptions in more detail.
Mobile Subscriptions
What mobile subscriptions are there? There are two types of how to deduct a certain amount of money from a user via SMS billing.
One of the bottom is called MO flow - the user sends a paid SMS. MO flow options:
- MO flow : the user enters his phone number -> receives SMS -> confirms by replying to SMS -> conversion.
- MO flow with click2SMS : the user clicks on the banner -> an SMS application opens with the information already filled in -> confirms by clicking the “Send” button -> conversion.
- MO MSISDN flow : the user number is automatically determined by the mobile operator -> confirms by clicking the "Send" button -> conversion.
Another type is MT flow , the user confirms receipt of paid sms. MT flow options:
- MT flow : the user enters his phone number -> receives a pin code -> enters this pin code on the site -> conversion.
- MT MSISDN flow : the user's number is determined automatically by the mobile operator and the pin code comes to him -> enters this pin code on the site -> conversion.
Types of payments
After we talked about the types of Conversion flow, it is logical to discuss the types of payments: what we are paid for. One of them and the most popular one is pay for leads . We are paid for certain actions: registration, installation, filling out a questionnaire. There are such things as CPL (cost per lead) or CPI (cost per install) - this is all payment for leads.
There is a scheme of work, when we are paid not for leads, but for sales . For an advertiser, leads do not carry monetary value, and he must monetize them. When we receive payment for sales, we make a certain step towards the meeting, and it’s already easier for the advertiser to monetize these users. This is not necessarily the final sale: we can get paid for the first sale, for the first deposit in an online casino. The advertiser knows that he will pull out more payments from the user, therefore, he is ready to pay us for the first payment. A paying user costs more than a regular lead. A scheme is often practiced with goods: they pay for a test purchase, a subscription for one dollar, and then money is regularly written off from the user. Accordingly, we are paid for the first lead.
The latter scheme is more complicated, but more beneficial to the advertiser, it is called Revenue share : the advertiser shares with us the percentage of actual final sales.
Take an online casino: the advertiser is willing to pay 30-40% of each deposit. For comparison: according to the CPL model, the scheme would have looked like this - the advertiser is willing to pay us three thousand rubles for the user who made the first deposit. And on the revenue share, he pays for the deposits that users make, and pays part of these deposits to us. The advertiser bears no financial risks and only pays for those users who he already earns. This scheme is beneficial for the advertiser, but it is more difficult for an arbitrator to work with it: you need more money for tests, more tools for proper analytics and correct decision making.
Conclusion
In this lesson, we looked at the payment models and types of Conversion flow. In the next lesson we will describe how to buy advertising on the Internet, what models of advertising purchase exist.
You can ask any questions about arbitration in the comments or in our VKontakte group .
Source: https://habr.com/ru/post/322512/
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