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Algorithm vs Single offers - "Man against the machine"

Discussion in 'Display Media Buying' started by Mobidea, Aug 28, 2015.

  1. Mobidea

    Mobidea Affiliate Manager Affiliate Manager Service Manager affiliate

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    Who would you trust to do some time-consuming complicated task - yourself or up-to date innovative top-class robot? Probably if you had right knowledge, time, money and patience you would prefer to be responsible for your actions and result achieved. But when you don’t even know where to start – probably you would rely on top class professionals who created the robot.

    So, basically, this is one of the first choice you have to face in your mediabuy activity – whether to search and use single offers by yourself or opt for programmatic algorithm.

    Here are some pros of each option.

    - ALGORITHM PROS:

    It will be easier for you – You will be working only on a side of your traffic. And an intelligent algorithm and a bunch of smart people from an advertising team of your CPA network will be responsible for the offer side. And they are the ones who will choose the most profitable offers for you. So in this case your task will be cut by half – you will be caring only about traffic optimization and business professionals will be in charge of offers optimization.

    One single link - You will have only one single link and you can use it to absolutely all campaigns – with different country/operator/os targeting. And the link automatically detects the profile of your users and shows the best offer available for this profile. So, this option is very user-friendly with zero mistake probability of associating wrong offer to campaign with wrong targeting.

    Less money to invest - You will not spend tons of money on testing each and every offer available on the market to choose ones which are working for your traffic and find the one which does it amazingly. If you are using global link of algorithm – lots of best offers are already tested for you. Not you, but an affiliate network is spending money on tests and search for new offers. So, using an algorithm you will be investing only in getting big volume of quality traffic, while best offers will be already picked. Moreover, you don’t have to be in the search continuously, because offers does not live forever and you would need to have backup plan, in case your star offer dies.

    Less time to invest - What also matters - is time. And all we know that time is money. The more time you spend on searching for the best offer for your traffic – the less time you spend on actual earning of money. And an algorithm is helping you to start earning money straight away without wasting your time on preparation work.

    Stability - Life is very unpredictable, things change, offers change and even die. If you are using single offer option, you may end up losing your money if something happens with the offer of your investment. But generally an algorithm has other good offers to drive your traffic to, so basically you are playing safer – if best offer disappears, there will be lots of options to replace it.

    Clearer - If you invest in single offer and start losing money, it is not really clear if it is fault of an offer you have chosen wrongly or the reason is in the quality of your traffic. Using an algorithm you will be sure that offers are working for majority of traffic and if you are not getting profit – most likely – the problem is on your traffic side.

    - SINGLE OFFERS PROS:

    More control over your activity - If the offer you have chosen stop working – you can be more operative in understanding the situation and pausing your traffic. So, you don’t need to wait and see what algorithm is going to offer you as a replacement and if your revenue will keep being positive after that.

    More profitable - There are plenty of offers available on the market, some of them with very high ecpm and of course not all of them are discovered by CPA networks and integrated into algorithms. So, if you are lucky enough – you might be able to find particular offer with outstanding performance, drive all your traffic there and get great revenue.

    Don’t lose traffic on everyday tests - An algorithm has to get stats somehow - to offer you the best solution for your traffic. So a random part of the traffic on the daily basis is going on test of existing offers and new ones. And due to the test traffic is random – your traffic is also a part of it. So, there is probability that small part of your traffic will land on the test offer with lower performance.

    Offer specifically for your traffic - Sometimes it happens that the best offer from algorithm is working worse for your traffic than the second best, but an algorithm will still be driving your users to that offer it considers to be the best. Using single offers option you are more flexible to choose the offer which suits better for your traffic, even if generally it shows lower results comparing to other ads.

    Banner for your offer - It is not a secret that banners influence a lot on conversion rate and your ecpm. Using algorithm option you are obliged to use generic banners which will suit every offer from the segment. But if you are using single offers – you can work harder with banners and adapt them to your offer, so you might increase probability of clicking on your banner and final conversion.

    The choice is not really easy to make, but you just need to make tests, listen to your intuition and understand what suits you better. What is more comfortable for you – to have more control over all your mediabuy activity or concentrate all your attention only on the hunt for cheap and quality traffic? It rest with you to decide! And I hope your decision will be the most profitable for you! Good luck to all!
     
  2. newbidder

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