Traffic arbitrage strategies: testing and avoiding mistakes

The overall income of traffic arbitrage specialists depends on how thoroughly was the arbitrage strategy tested. But what are the most common ways of testing such strategies and what are the most common mistakes?

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Arbitrage strategy testing:

1. Traffic source and GEO
The more thorough you analyze your traffic, the more accurate promotions you’d be able to create. Try testing different traffic sources and keeping an eye on the results. Test different GEOs: launching your ads in different regions will highlight those GEOs, where your strategy is delivering the most of your profits.

2. Promo creatives
In order to run quality testing, you’ll need to create a number of different promotional creatives. Thus, you’ll be able to use different images and texts to create various promotions and define those which show the best results.

3. CTR analysis
When launching your testing ads, set the budget limits so it won’t exceed the overall price of two leads. That’s if one lead gets you $20, you shouldn’t spend more than $40 for the test. Analyze the results afterward, so you could gain more by combining the ads that showed the best results.

4. Audience and lending pages tests
Run tests with different audiences and landing pages in order to get a higher conversion rate. When testing different audiences, try changing demographic parameters, interests, as well as studying the audience activity, which would help you to create time schedules for different promos. Analyze landing page visitors’ behavior (e.g. with the use of Google analytical systems) before setting up a landing page.

Сommon mistakes:

1. Short-term tests
One of the most common mistakes in the testing of an arbitrage strategy is a termination of work after the first short-term test. A number of strategies become capable of much higher conversion once the ads are optimized, so it’s better to run a sufficient number of tests to make sure that you don’t write off the profitable strategy.

2. Too many campaigns and promo creatives
The more campaigns you’re going to test, the bigger the budget you need for that. In case there is a number of different campaigns for testing, there is a big chance that tests will not only be costly but also won’t show statistics detailed enough for making a balanced decision (especially if you’re not experienced in traffic arbitrage). The same goes for promo creatives: it’s better to focus on a few creatives and collect more statistics than to try dozens of different versions with alternating success.

3. Loads of traffic sources
The more traffic sources are involved in the test, the more difficult it’s to analyze the results. Generally, it’s better to be focused on the traffic sources specified in the campaigns' details, and add new ones step by step when appropriate.

4. Traffic sources and advertising audiences review
In case that conversion rate isn’t as good as expected, switching to different sources of traffic can make a real difference.  And don’t forget about analyzing your advertising audiences: there are dozens of ways to scope public audiences in social media today to make sure that the groups and public pages you’re working with aren’t full of bots.

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