Creatives: Conversion Rate Vs. Average Payout (9)
When running an offer which has different payouts based on the final sale of the customer, do you take those average payouts into account when picking winning creatives?
For example, I have a new creative I've been testing. So far the conversion rate for that creative is higher than some of my others, but the average payout has been lower.
I'm lead to believe that the average payout being lower is just an unlucky roll of the dice. But if the emotion for the sale starts being triggered at the creative, maybe not?
If I need statistical significance for both conversion rate, and average payout, it makes picking winners more complex and much more data is needed.
Should I go by only conversion rate to keep things simple, or do I need to take into account the average payout also?
That's a dilemna i find with most of my offers but i think in the long run, conversion rate is what really matters.
I will pick Volume with little profit over huge profit on low CR.
Low CR means you get to waste ad budget optimising for that one sale. Aint nobody got money fo that
Without having that much info about your creative/campaign/vertical/volumes etc, I would say go for the high CR campaign with lower payout. With a stable/high CR it's easier to scale (with budgets on native, but also maybe on other traffic sources). At the end having a stable EPC is key for me.
You also need to consider why the payout is higher, usually it means a more complicated flow or a different conversion point completely. That's why lower payout offers pretty much always convert better. It's easier to optimize the lower paying offers, as you need less traffic to reach significance. But that doesn't mean you can't make more money with the higher payouts.
When I'm testing offers with different payouts in one campaign, I always look at the final ROI and decide based on that. It takes more time to analyze such campaigns properly, because as you suggested, it needs more data and you basically have to check stats deeply for every offer separately.
To make things simpler, sometimes I just clone the campaigns and put offers with similar payouts into each of them, instead of mixing them into one.
Sorry, I guess I wasn't clear enough.
It's a single campaign with a single offer, which pays me a percentage of all sales within the funnel, including upsells.
So far the average sale of the higher CR creative has been half of the average sale of some of my other creatives. At 16 sales on the new creative.
I want to assume that the average sale over time will eventually even out with the new creative, and I should focus only on ad ctr and CR.
But wanted some more experienced input on that assumption.
Ah ok, so this is a bit different. I would still look at the final ROI. The creative can definitely have an impact on the final CVR, especially if it's using a specific angle or somehow relates to the upsells that could be driving up the final value of the initial conversion.
Not sure what you are promoting here, but 16 sales is probably not enough data to drive any conclusions or confirm any trends/patterns. On top of that, the upsells might take a few days to kick in, in case there is some follow up sequence in place.
I know what you mean though, it would be quite logical to assume that the more initial sales you achieve, the higher the final value including upsells should be.
When you look at the other creatives you've been using, how long did it take for the upsells to kick in and achieve higher revenue per conversion? In case it took a few days, you might just want to give the new creative a few more days and watch the average value grow 
Originally Posted by matuloo
Not sure what you are promoting here, but 16 sales is probably not enough data to drive any conclusions or confirm any trends/patterns. On top of that, the upsells might take a few days to kick in, in case there is some follow up sequence in place.
I know what you mean though, it would be quite logical to assume that the more initial sales you achieve, the higher the final value including upsells should be.
When you look at the other creatives you've been using, how long did it take for the upsells to kick in and achieve higher revenue per conversion? In case it took a few days, you might just want to give the new creative a few more days and watch the average value grow
I'll wait for more data. Average sales could turn around, and if they do the higher CR would help the overall campaign.
But the upsells make up a large portion of overall ROI so I do need to make sure the average sale value stays the same.
Originally Posted by sprice
Then I would definitely focus on what ROI that creative brings. Higher CVR means nothing if the final returns are lower compared to the other creatives. Its all about the bottom line
Originally Posted by matuloo
Then I would definitely focus on what ROI that creative brings. Higher CVR means nothing if the final returns are lower compared to the other creatives. Its all about the bottom line
Home > Paid Traffic Sources > Native