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Maximizing the conversion rate: types and practical tips for successful arbitration

Conversions are the key actions performed by users on the advertiser's website after clicking on an advertising link. These actions serve as a measure of the success of an advertising campaign and allow you to assess its returnability.


Depending on the type of desired result, conversions can be expressed both as a percentage and in absolute numbers. Conversions are calculated using a simple formula:


Conversion = Number of desired actions / Total number of visitors


For example, if 100 people clicked on an ad, and 20 of them made a purchase, the conversion rate will be 20%.


This data is necessary to optimize advertising campaigns, including changing the target audience or traffic sources. Conversion tracking is one of the main methods of maximizing profits.


Although usually one offer includes one desired action, sometimes you have to work with more complex scenarios, for example, with multi-level funnels, where one promotional offer may have several desired actions with different payouts.


Types of conversion


When working with various affiliate programs, different payment principles are used, which affect the strategies of arbitrators and webmasters. Here are the main types of actions that are often encountered when working with traffic:


  • Revenue Share (RevShare):

In this model, the arbitrageur receives a percentage of the profit that the traffic attracted by him brings to the advertiser. This can be a percentage of revenue or profit after deducting costs.


  • Pay per Click (PPC):

Here, webmasters receive payment for each click on an ad they have placed. The cost per click may vary depending on how much the target audience was attracted by the advertisement.


  • Pay per Lead (PPL):

In this model, payment is made for each registered user or for performing a specific action, such as filling out a form or registering on a website. Arbitrators receive a commission for each successful lead.


  • Pay per Action (PPA):

Here, the webmaster receives a fixed amount for each specific targeted user action, such as installing an application or making an appointment for a consultation.


Each of these models has its advantages and is suitable for certain types of campaigns and advertiser goals. The choice of a suitable payment model depends on the strategy and goals of the arbitrageur or the webmaster.


What actions can be considered a conversion?


In traffic arbitration, there are several key indicators for evaluating the effectiveness of campaigns. Here are some types of actions that can be considered conversions:


  • Purchase:

This type of conversion occurs when a visitor makes a purchase on the advertiser's website. It is usually measured as the number of sales and the amount of income from them.


  • Registration:

Here, the user registers on the advertiser's website by creating an account or filling out a form with contact details. This can be an intermediate step towards a purchase and helps to collect information about potential customers.


  • Installing the application:

This type of conversion is recorded when a visitor downloads an application to their device, especially when working with mobile traffic.


  • Filling out the form:

Users provide their contact details by entering them into a form on the advertiser's website. This helps to collect information for subsequent communication or marketing campaigns.


  • Click:

This type of conversion occurs when a visitor clicks on an advertising banner or a link directed to the advertiser's website. This helps to attract potential customers to the site.


These are just a few examples of conversions that can be used in traffic arbitration. Any action that benefits the advertiser can be set as a conversion goal.


What affects conversions?


The factors influencing conversions when working with traffic can be diverse and vary depending on the context. Here are a few key factors:


  • Type of target action:

Some actions, such as buying a product or service, may be more complex and demanding than, for example, subscribing to a newsletter. This affects the perception and value of various conversions.


  • Target audience:

Different groups of users may show different interest in advertising offers. Understanding your target audience and their needs allows you to better target conversions.


  • Competition:

The level of competition in the market also has an impact on conversions. If there are many similar offers, it may be more difficult for the user to make a choice, which may reduce conversion rates.


  • Seasonality:

The time of year or seasonal factors can significantly affect conversions. For example, offers related to beach holidays may have higher conversions in the summer, when demand for such goods and services increases.


Successful traffic arbitrage strategies take these factors into account and adapt to them to maximize conversions and the effectiveness of advertising campaigns.


Why do I need to track conversions?


Tracking user actions when dealing with traffic really plays a key role in a successful arbitration strategy. Here are some more reasons why this is necessary:


  • Evaluation of advertising campaigns:

Conversions are the main indicator of the effectiveness of advertising campaigns. They allow you to determine which ads attract the target audience and achieve their goals, and which ones need to be optimized or discontinued.


  • Campaign optimization:

Information about user actions helps to adjust ads and targeting strategies in time. Arbitrageurs can analyze conversion data to optimize landing pages, improve content, or even change targeting strategies to achieve better results.


  • Improving ROI:

Conversion tracking is necessary to calculate the return on investment (ROI). Understanding which advertising campaigns or traffic sources generate the most revenue from invested funds allows you to optimize your budget and maximize the profitability of advertising campaigns.


Tracking user actions provides valuable information that helps arbitrators make informed decisions and achieve successful results in dealing with traffic.


How can I increase the conversion rate?


That's right, increasing the conversion rate (CR) is an important task to improve the effectiveness of advertising campaigns. Here are some strategies that can help achieve this goal:


  • Segmentation by region:

Study the data on the regional popularity of the selected product or service and adapt advertising materials and messages for specific regions. This may include the use of local customs, cultural characteristics and language.


  • Working with dates and timers:

Use scripts and functionality for working with dates and timers to create relevant and urgent offers. This can encourage users to take action and help increase conversions.


  • Currency accounting:

If you work with different geographical markets, make sure that prices and the cost of goods or services are displayed in the local currency. This helps users better understand the cost and makes the offer more attractive.


  • Adaptation to the language:

Ensure that the advertising materials match the language spoken by the target audience. Offers and messages written in their native language may be more attractive and understandable to users.


  • Consideration of cultural characteristics and mentality:

When creating promotional materials, take into account the cultural characteristics and mentality of the target audience. This will help create more relevant and engaging messages that will better resonate with users' needs and expectations.


Improving these aspects will help make advertising campaigns more attractive and relevant to your audience, which in turn can lead to an increase in the conversion rate.