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Old 11-22-2007, 03:16 AM  
MarcWomack
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Join Date: May 2002
Location: Manila, Philippines
Posts: 529
Great info for sure but I've got a somewhat challenging question I want to ask as it seems like you're a rare breed (intelligent, helpful, actually looks at numbers to try and maximize revenue).

Aren't you missing something HUGE? Click-Thru Ratio (CTR)? Example:

Dating Site A: 9000 clicks, 1/500 conversion, $40 payout = $720 earnings
Dating Site B: 9000 clicks, 1/200 conversion, $40 payout = $1800 earnings

Which one to choose? Assume they clicks/uniques/conversions exactly the same way and don't shave (BIG assumption). 99% of folks out there would choose B. But factor in CTR:

Dating Site A: 1/500 CTR = $0.16 Revenue/1000 impressions (RPM)
Dating Site B: 1/1500 CTR = $0.133 Revenue/1000 impressions (RPM)

So for A, every time you display their ads 1000 times you make $0.16 but for B you only make $0.133. A is the dating site you should be running ads for NOT B! You make more off your ad inventory. But if you're not taking CTR into account you'd have picked B which makes you less!

This is all making that HUGE assumption that the reports you're seeing from the different programs are always accurate and that they report clicks/uniques the same way. If you believe that I've got a bridge for sale.

The way we (CJTraffic / SickSiteNetwork / ConsumptionJunction) used to cut down on the concern of different reporting/shaving was to track clicks with our system and only look at the earnings reported from the affiliate program. Great in that it gives us REAL revenue per click numbers. But as I explained above that simply isn't accurate. If you're not looking at CTR you're screwing yourself.

The goal is to make the most money possible with every ad impression you display, right? You're trying to maximize your RPM. You can't do that only looking at the stats the programs provide. You can't do that only looking at revenue per click. You've gotta look at your RPM.
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MarcWomack.com
Internet Advertising & Outsourcing Consultant
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