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Determination of sufficient volume (7)

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Hello dears!

Repeatedly on the forum I read that ROI is always more important than volume of traffic.

However, nowhere does it say how to determine whether there is sufficient volume to bring the company or not. Maybe there is some way in which it is calculated whether I will get enough volume for the selected bundle?

Sorry for my bad English, I'm from Russia

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Whenever you will need to tell if your campaigns have received enough volume or not, you might want to compare it in relation to the total amount of traffic a specific traffic source has for the country you are targeting and along with that, the amount of traffic you can afford to buy.

Let's say you are buying traffic for two campaigns simultaneously, one in US and another one in Nicaragua.

For the US campaign, you are getting around 15% of the inventory your traffic source has, in which case is plenty enough since for this geo internet penetration is quite high.
For the Nicaragua campaign, you are getting around 20% of the inventory your traffic source has, in which case, it might not be enough because this geo has way less traffic than US and internet penetration might be way lower.

Note: that for the above example, we're assuming you're still running on some of the traffic sources that have enough volume for a specified geo.

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Thanks for your answer, how do you determine which percent of traffic you receive?

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it depends on where you get your traffic from

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Some sources provide these numbers, there are traffic estimation tools and/or bidding positions. These can serve as a hint, but you need to take these numbers with a grain of salt, they are never 100% accurate.

BTW, this doesnt have to be true in all cases.

It's great to have 100% ROI but if the available volume is low, you will not be able to make any serious money. It's better to buy $1000 worth of traffic with 20% ROI ($200 profit) than $100 worth of traffic with 100% ROI ($100 profit).

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Yeah this is not always true man

https://stmforum.com/forum/showthrea...rate-on-VOLUME

Personally volume > ROI. Adds more stability to your approach like matuloo said above the lower spend campaigns are rollercoasters more often then not, swapping the mentality to volume and then benefiting through optimisation was a big lesson for me, but of course not the same for all, and not the same for all traffic sources.

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Mistake #7 : Maximizing ROI Instead of Profits

200% ROI may sound impressive - until you reveal that you're spending $1/day to make $3.

30% ROI may not sound like a lot - but if you're spending $1000 to make $1300, that wouldn't be too shabby at all!

The differentiation is especially important in cases where you need to sacrifice ROI to maximize profits.

For example, when you increase frequency cap, the ROI tends to drop, but there's a chance for the extra traffic to result in increased profits.

Or, when you bid higher to get more traffic or target less-profitable traffic, just to do enough conversions to get that next pay bump.

The exception to this is if you're running out of cash - in that case, you WILL want to maximize ROI instead of profits.

Recommended To-Do: Aim to maximize profits instead of ROI, UNLESS cashflow is becoming an issue. Also, avoid running camps that don't have sufficient profits potential in the first place, for example a traffic source that doesn't have much traffic for your target geo.

EDIT: Matuloo has written a post to discuss this topic in great detail: https://stmforum.com/forum/showthrea...ad-Why-is-that

(Reference: https://stmforum.com/forum/showthrea...Avoid-(Part-2))




Amy

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