The Challenge of High Quality And High Volume
Here is an article that appeared on Jay Weintraub’s blog and is being re-published with permission:
Ask almost any advertiser who has at least a modicum of experience in online advertising, and growing volume while maintaining quality will rank high among their challenges and frustrations. It is a problem old as time in the performance marketing sector, and the unfortunate truth is that after a certain point, quality starts to degrade. Let’s use an auto insurance offer running on a cpa network in order to better illustrate the challenge. The offer looks to get users to enter their information to see if they could lower their auto insurance payments. When a user enters their information, the network receives credit and they then credit the appropriate publisher. The person buying the lead receives no money from the user filling out the form only from the percentage of users who then go on to purchase a policy. The higher that conversion rate from lead to policy, the higher the quality, with quality as defined here and price the buyer can be being highly correlated. If more people convert from lead to policy, the lead buyer can afford to pay more. If fewer people do, then they will have to lower the payout in order to continue covering the cost of buying the leads.
