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Effective social media strategies to increase traffic and conversions

Effective social media strategies to increase traffic and conversions

Traffic arbitration, or as it is also called, network arbitration, is a business model based on the purchase of traffic on one platform and its subsequent resale (monetization) on another at a higher price. The difference between the cost of attracting a user and the income from his target action (lead, sale, installation) is the profit of the arbitrageur. With the ever-increasing competition in the digital space, having effective strategies is becoming a key success factor. This article will reveal proven approaches that will help increase traffic and increase conversions within the social network.

Success in this area depends not only on the ability to find cheap clicks, but also on a deep understanding of the target audience, analytics, and the ability to quickly adapt to changes in the market. Well—designed network arbitration is not a lottery, but a systematic work that requires accuracy, testing and constant optimization. Let's look at the fundamental and advanced strategies that form the basis of profitable activities.

Understanding the basics: choosing a vertical and an offer

The first and most important step in traffic arbitration is to choose the right vertical (niche) and specific offer (advertiser's offer). Almost everything depends on this decision: the choice of a traffic source, creatives, targeting settings and, ultimately, return on investment (ROI).

Verticals in arbitration are divided into many categories:

  • Nutra: health and beauty products such as weight loss products, anti-aging creams, and supplements to improve potency. This vertical is characterized by a wide audience and high demand, but also significant competition. Successful network arbitration in the gut requires high-quality prelanding and convincing creatives.

  • Gambling and Betting: online casinos, sports betting. This is a highly profitable, but also high-risk niche. Advertising networks often impose strict restrictions, and their work requires large budgets and experience bypassing moderation.

  • Dating: dating sites and applications. It is divided into mainstream (regular dating) and adult (adult dating). It is characterized by a relatively low cost of traffic and simple targeted actions (registration).

  • Finance: microloans, credit cards, investment platforms. It requires working with a paying audience and trusting approaches in advertising. Conversion is expensive here, but the payouts are among the highest.

  • Merchandise (E-commerce): the sale of physical goods, often so-called WOW-goods (unique gadgets, unusual household items). Success here is highly dependent on trends.

    When choosing an offer within the vertical, it is necessary to analyze the terms of the partner program: the amount of payment, accepted GEO (countries), allowed and prohibited traffic sources, as well as the payment model (CPA, CPL, CPS). Beginners are encouraged to start with simpler verticals, such as commodity trading or mainstream dating, in order to master the basic principles of online arbitration.

Selecting and testing traffic sources

The traffic source is a platform where you will purchase an audience. There is no universal source that would be suitable for all offers. The choice depends on the vertical, GEO, and specifics of the target audience.

The main types of traffic sources:

Instagram Facebook, TikTok, VKSocial networks. The main advantage is the possibility of detailed targeting by demographics, interests, and behavior. This allows you to find the most relevant audience. However, moderation on social media, especially Facebook, is very strict, which complicates the network's arbitration in "grey" niches.

2. Contextual advertising (Google Ads, Yandex.Yandex. Direct). It works with "hot" demand when users are already looking for a specific product or service. It has a high cost per click, but also a good conversion rate. Suitable for white offers, for example, in e-commerce or finance.

3. Teaser networks. They specialize in placing eye-catching advertisements (teasers) with intriguing headlines. Traffic is relatively cheap here, but its quality is often lower than on social media. Teaser networks are well suited for the interior and merchandise.

4. Push notifications. Ads in the form of pop-up notifications in the browser or on a mobile device. This format provides high CTR and low cost per click. It is effective for gambling, betting and dating.

The key to success is constant testing. It is not worth investing the entire budget in one source. Run several test campaigns with small budgets on different platforms to determine which one provides the best ROI for your offer. Analyze not only the cost per click (CPC), but also the cost of the lead (CPL) and the final payback. This approach to online arbitration allows you to minimize risks.

Creating effective creatives and prelanding

Creative (advertisement) and prelanding (intermediate page) are a bridge between the user and the offer page. Their task is to interest, "warm up" the audience and motivate them to take a targeted action.

When creating creatives for the social network, it is important to adhere to several rules. First, the creative must comply with the rules of the advertising platform in order to avoid being blocked. Secondly, it should be visible and attract attention in the news feed or on the website. Use bright colors, dynamic videos, and clear call-to-Action. Third, the creative must be relevant to the offer and the interests of the target audience.

Prelanding (or "padding") plays a critical role. It is needed in order to prepare the user before he gets to the advertiser's landing page. Good prelanding solves several problems:

  • Filters out inappropriate traffic.

  • Increases the credibility of the product through success stories, reviews, and scientific justifications.

  • Removes the user's initial objections.

  • Fuels interest and creates a sense of urgency or exclusivity.

    For example, for a weight loss nutra-offer, an effective landing page will be designed as a personal blog of a doctor or a success story of a real person. For gambling, a news article about a big win. It is important to conduct A/B testing of not only creatives, but also prelanding, changing titles, images, texts and calls to action. Optimizing this link in the funnel often results in the largest increase in conversion to network arbitration.

Deep analytics and campaign optimization

Network arbitration is about working with numbers. Without constant data analysis, it is impossible to achieve stable profits. The main metrics that need to be monitored:

  • CTR (Click-Through Rate): shows how attractive your creative is. A low CTR indicates that it needs to be replaced.

    -CPC (Cost Per Click): the cost of one click to your landing page or landing page.

  • CR (Conversion Rate): percentage of users who completed the target action.

  • EPC (Earnings Per Click): average revenue per click.

  • CPA/CPL (Cost Per Action/Lead): the cost of one target action.

  • ROI (Return on Investment): return on investment, the main indicator of efficiency. It is calculated as ((Income - Expense) / Expense) * 100%.

    To collect and analyze this data, trackers are used — special services (for example, Keitaro, Binom) that allow you to track every click and conversion, as well as segment traffic by a variety of parameters: GEO, device, browser, time of day, etc.

    Data—driven optimization is an ongoing process. By analyzing statistics in tracker, you can identify ineffective campaign elements and disable them. For example, if you see that traffic from a certain site or a certain smartphone model is not being converted, you create a blacklist and stop purchasing this traffic. Conversely, by identifying the most profitable segments (for example, women 25-34 years old who use Android), you can create whitelists (whitelists) and scale the purchase to this particular audience. A systematic approach to analytics is what distinguishes professional online arbitration from casual attempts to make money.

Scaling successful bundles

When you have found a profitable combination (offer + source + creative + prelanding), the scaling stage begins. The goal is to increase traffic volumes and, consequently, profit, while maintaining a positive ROI.

There are several approaches to scaling:

  • Vertical scaling: Increase the daily budget for the current advertising campaign. This should be done gradually, so as not to "break" the algorithms of the advertising network and lead to a sharp increase in the cost of traffic.

  • Horizontal scaling: Copying a successful campaign to other accounts, other GEO or other advertising platforms. If a bundle works well in one country, chances are that it will perform just as well in neighboring countries with a similar mentality.

  • Optimization of the funnel: improvement of individual elements of the bundle to increase conversion. For example, translating creatives and landing pages into local languages and adapting them to the cultural characteristics of the new GEO.

    Scaling is a risky stage. A sharp increase in the budget can lead to a drop in ROI. Therefore, it is important to act carefully, constantly monitoring key metrics. Successful scaling in a large network requires not only financial investments, but also a well-developed infrastructure: a large number of advertising accounts, payment means, proxy servers.