Hi guys,
Does anyone have experience with traffic sources that run on a CPA/CPI model (i.e. you pay only when a conversion happens)?
What are the pros and cons of using such a network? And how do they decide on the price you pay?
Thanks!
Obviously the risk:reward is great for you... but many CPI/CPA bidding modes come with baggage.
E.g.
a) you may need to match competitor rates so other affiliates/networks/direct advertisers will out bid you, and there is little you can do here if ad types are generic (i.e. your banners cant make a difference).
b) direct relationships with advertisers will lock you out
c) they may not work with affiliates at all
d) for app installs you often have to integrate and SDK
e) high minimum deposits
f) on CPA the eCPM you give the network may be lower = no motive for them to give you volume on ads that earn them less
g) often more managed than pure self-serve CPC/CPM so may have a rep bottleneck for many operations
etc.
The main pro is the low risk of testing and data collection. You can scale to CPM to optimise ROI on pubs, banners, etc.
The quality of CPI traffic usually is bad.
Many times you buy traffic from somebody, who buys from somebody, who buys from somebody...
And only some of them have real direct pubs traffic which is premium inventory and it is very difficult to get it with affiliate payouts.
Direct advertisers are your competitors in this case.
In addition, there are companies that send you pop unders traffic mixed with incent instead of banner ads.
That's why you get first day 0.0X% CR and 10-20% following days...
Bottom line - too risky for affiliates.
Thanks for the great information guys 