Traffic arbitrage cases
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Traffic arbitrage cases

Case: Boosting ROI from -23% to 135% through lead magnet optimization.

Sweepstakes

What do we know about lead magnets?

We know that their main purpose is to warm up the user (with a bonus, promo, etc.) before conversion. Essentially, in traffic arbitrage, the lead magnet is your creatives and pre-landers. In this case study article, I will explore the most subtle aspects of optimizing your lead magnet, how to effectively work with creatives and their content, and demonstrate the difference between two tests using a real-life example.

The first test involved collecting creatives with the analysis of the target audience, employing different approaches, utilizing information from the main landing page, and so on.

The second test involved collecting creatives randomly, without analyzing the target audience or utilizing tools. Let's get started.

Choosing the Offer

Let's take the most common offer available in the Adsterra CPA affiliate network. It's a sweepstake offer for Germany, CPL SOI, with payouts for each registered user without confirmation. The landing page contains a built-in questionnaire with three questions, and after completion, an email entry window pops up. Upon filling out the email, we consider it a conversion.

The offer is regularly updated, and it continues to convert (€1000 Amazon gift card + Samsung S21 + Samsung Watch, it sure converts).

Payout: DE - $2.88/CPL SOI

Screenshot of the final landing page:

Strategy

As mentioned earlier, today we will be testing different approaches to creatives and analyzing their impact on the success of your campaigns.

To begin with, we will allocate $250 for testing and set up two identical campaigns on an SSP platform. Then, I plan to optimize both campaigns equally (although there will be differences since some poor sources may convert well for other campaigns/creatives).

In one campaign, I will test, modify, and add creatives, while in the other, I will launch it as is and forget about it during the testing period (except for optimization). We will start by targeting mobile devices and tablets, after the initial optimization. You can also create a separate campaign for desktop traffic.

I recommend setting the minimum bid at $0.008/click, as we expect a surge in traffic during the test. The estimate predicts around 16k clicks per day (although there may be fewer due to traffic dynamics).

Approach #1

We have $250, and we need to spend them wisely. What will we do?

  1. First, let's determine which creatives we will use in this case. As I mentioned earlier, the creative equals the landing page content, and it should be a clear match. Users will be disappointed if you promise them a mountain of gold in the creative, but they end up seeing a lackluster landing page after clicking. You will have a high CTR and low CR.

Just to remind you, the constructor makes the background of PNG images black to increase contrast in the creative preview. It will be displayed with an EMPTY background, so be sure to consider this when designing your creatives.

I will show you some examples of creatives that I created myself using the updated Social Bar constructor from Adsterra.
The beauty of the Sweepstakes vertical lies in the fact that the world itself has defined events when it runs after purchases. Creatives can be launched thematically, tying them to a specific event that provokes an increase in demand, and we, together, create the offer.

Here are some examples:
I appreciate the suggestion to use Canva at a basic level and have a subscription for stock images, or to allocate more time to find the necessary PNG files.

Additionally, don't forget about freelance websites where you can have creatives made according to a pre-prepared brief for a small fee.

  1. Spy tools, as I mentioned earlier, allow you to track trends and stay updated on the most popular Sweepstakes offers at the moment.

Please note that the image converter may slightly crop the edges, so be prepared to center the image to avoid losing any important parts of the picture.

Double-check your translated text multiple times, as it significantly affects the final CTR. You risk losing a significant portion of traffic if your translation is not accurate.

  1. Ban placements with bot traffic. Previous experience working with platforms and testing on small budgets can be helpful here. If a DSP platform has a bad reputation, confidently block it.
  2. Start building whitelists from the very beginning. If you see excellent performance, confidently add the placement to your whitelist. In the future, you can run campaigns on the whitelist with custom bids, which helps save money and time.
  3. Communicate with your account manager. Communication with the account manager is beneficial for you. The manager is interested in your success, so inform them about your progress and ask for advice. I believe you will be pleasantly surprised.

Approach #2

We have $250 remaining, which we wanted to spend on testing the second approach. I want to emphasize that this approach is NOT recommended. Please note that this approach demonstrates an inefficient use of money.

In this approach, I intentionally create poor-to-average creatives using low-resolution images, poorly translated text, and off-putting pre-landers (or even the absence of pre-landers).

We will do everything in reverse, where the creative will not reflect the landing page content and will be completely wrong.

I will run only 2 creatives without making any changes or optimizations.

Here are examples of creatives that you SHOULD NOT use if your goal is to make a profit:
In approach #1, the problem with the creatives is that they are empty, intrusive, and lack meaningful content. They fail to establish a strong connection between the creative, pre-lander, and landing page, which is crucial for a lead magnet. The seamless flow between these elements should create a funnel that engages users and motivates them to convert.

Optimization:

  • Start by banning all DSPs (Demand-Side Platforms) that generate bot traffic. Research and identify DSPs with such issues and avoid using their traffic unless you are confident that the feed is non-aggressive and compliant with the platform's rules.
  • Conduct tests to quickly gather a maximum amount of traffic, weed out irrelevant sources, and make adjustments to bids and creatives.
  • Once the testing phase is complete, create a whitelist of placements that convert well and focus traffic exclusively on those sources.
  • Exclude creatives with low CTR (Click-Through Rate). Initially, start with 10-15 creatives to avoid rushing the process. A/B testing is recommended, employing different approaches and variations in titles, descriptions, and high-quality PNG images. Use spy tools for inspiration and references.

Post-Optimization:

  • Target mobile devices (and tablets for future scaling).
  • Target Android versions from 4.0 and iOS versions from 9.0 (consider splitting campaigns into two for simplified optimization and customization of creatives based on device notification systems).
  • Set a bid of $0.008 per click.
  • Separate desktop targeting into individual campaigns for scaling purposes, with OS breakdowns after the main tests (unless budget constraints require running a split).
  • Disable creatives with low CTR and CR (Conversion Rate).
  • If performance is consistently poor, pause the campaign and fully replace the creatives.
  • Set up a postback and share test conversions with your manager before starting the campaign.

Results: Approach #1

Unfortunately, the specific results for approach #1 are not provided in the given text.
Spent a total of $250 on Adsterra.
Total revenue received: $587.5.
Profit: $337.5.
ROI: 135%.

Approach #2

Screenshot from Adsterra CPA Network:
Spent a total of $250 in Adsterra. Total revenue generated is $193. Profit is -$57. ROI is -22.8%.

Conclusions

The results speak for themselves. The creatives directly influence the performance of the campaign. In the second approach, I initially expected zero conversions. It is very difficult to make money without showing ambition and initiative.

In this case study, we have thoroughly examined how creatives impact the success of a campaign and its subsequent performance.

Make sure to test new approaches, look for offers that align with specific events, improve the optimization of your campaigns, and closely monitor the statistics. Thank you!