Traffic arbitrage. Terminology in arbitrage
Traffic arbitrage is the process of buying traffic on one resource and selling it on another for profit. It is one of the most popular forms of advertising on the Internet, allowing one to earn money from the difference between the cost of advertising and the income it generates.
In this process, various terms are encountered that the user should know to understand how traffic arbitrage works and how to achieve success in this field.
- CPC (Cost per click) is the cost of one click on an ad. This metric is very important for a traffic arbitrage as it allows one to calculate how much money is needed to spend to get one click.
- CTR (Click-through rate) is the percentage of users who clicked on an ad compared to the total number of ad views. A high CTR indicates the effectiveness of the ad and can positively affect its cost.
- CPA (Cost per action) is the cost of one action that a user performs on the advertiser's website, such as registration, form filling, or product purchase. This metric is important for a traffic arbitrage as it allows one to calculate the cost of acquiring one customer.
- EPC (Earnings per click) is the average income generated from one click on an ad. This metric allows one to calculate the potential income from advertising based on the average income per click.
- Landing page is the page that a user is directed to after clicking on an ad. The goal of this page is to attract and engage the user to perform a specific action, such as filling out a form, registering, or purchasing a product. Typically, landing pages have a special design and content that help attract attention and increase conversion.
- Traffic source refers to the resource from which traffic is directed to an advertiser. This can include search engines, social media platforms, ad networks, and other resources.
- Split testing is the process of testing different variations of advertising content, landing pages, and other elements in order to determine the most effective option. This helps reduce advertising costs and increase conversions.
- ROI (Return on Investment) is the ratio of advertising costs to the profit earned. This metric allows for the evaluation of investment effectiveness and the selection of optimal advertising channels.
- Affiliate marketing is a form of marketing in which a traffic arbitrator offers advertising to their partners in order to earn a commission for each user action they take.
- Targeting is the customization of an advertising campaign to attract the maximum number of potential customers. This can include settings based on age, region, interests, and other parameters that allow for the selection of the most relevant audience.
- Retargeting is a marketing strategy in which users who have already interacted with advertising content are shown further ads. This helps maintain interest in the product and increase conversions.
- Ad placement refers to the location of advertising content on a page. This can include the top or side panel, the middle of the page, or other areas where audience attention can be captured.
In summary, traffic arbitration is a complex and dynamic process that requires knowledge of various terms and directions to ensure an effective advertising campaign. Understanding these terms and their use allows traffic arbitrators to increase the efficiency of their work and achieve better results.