Hi
I'm new here - corporate financier with SEO IM background as a hobby, getting into AM. Question please:
Apparently profitable AM campaigns die off. Is that because a mispricing was found in ad prices (compared to commission rates and conversions etc) that is arbitraged away?
If so, then after all the advert mis-pricings are arbitraged away, won't there be a fully efficient market in a few years and noone makes any profit?
Or, are somehow NEW opportunities (mis-pricing in advert rates) continuously created so we can keep finding new profits? If so, how?
Thanks!
Rod
It's not just an arbitrage game, sometimes a campaigns dies just because a company is satisfied with the results. They wanted 100,000 Dating leads and they got them.
At the same time new opportunities are available every month. For example a new company needs thousands of Insurance leads, no matter how much does it cost to get them.
So the constant profit opportunities, and death of profitable opportunities are from:
1) New offers being available, and old offers being withdrawn; AND
2) Ad prices moving up to arbitrage our profit opportunities as other AM's find out.
Few things.
1. Ad fatigue
2. Ad price moving
3. Ad compliance policies changing
4. Merchant changing things with the offer so it stops converting
5. Audience fatigue
6. Merchant pulling campaign out of the affiliate market
7. Merchant not paying their bills
Typically good campaigns are generated by creative ads and angles that aren't being tried. Or optimizing something that's already working and doing it better. There fore the ctr or conv rate goes up. Which allows you to bid more then others and win inventory. All those things fatigue over time though.