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Traffic arbitrage

Case: $55k profit within 1 month using teaser ads on a news showcase.

Not long ago, the KMA.biz affiliate network introduced its news showcase. The internal arbitrage team at KMA.biz tested it across various sources and is now ready to share a case study based on Advertlink teaser ads.

  • Traffic source: Advertlink
  • Affiliate network: kma.biz, showcase
  • Expenses: 166,905.23 Russian rubles
  • Income: 222,100 Russian rubles
  • Profit: 55,194.77 Russian rubles
  • ROI: 33%
  • Period: February 1–28

First steps

Using spy services, we monitored and selected the most relevant news. The most relevant news is those that have received the highest amount of traffic over the past few weeks or months. It's also possible to work with news articles that have performed well on other sources.

For each news article, we created 5–8 simple teaser ads.

Adding the showcase to the personal account

In the personal account of KMA.biz, we add the showcase and news.

Here's what the interface looks like:
Next, we create streams.
Here's how our showcase looks on one of the most popular Advertlink news articles during the testing period (the topic of pensions will always be relevant in Russia).

Reducing the cost per click

Our goal was to achieve the lowest possible cost per click, ideally 1 ruble, without sacrificing a significant volume. How to achieve this? In Advertlink, as well as in other teaser networks, there's a particular technique that works well – they perform well in terms of click prices while maintaining a high CTR.

How to do it? You need to set your initial bid approximately 50% higher than the desired amount and decrease it by 5–10 kopecks every 5,000 impressions. If a teaser's performance drops, consider switching to another one or start over, reducing the bid until you find the point where performance stabilizes. If the teaser is still profitable even at a slightly higher cost per click, keep it running, of course.

Statistics for February

Examples of teasers that converted and achieved a decent CTR

What about the settings?

We didn't complicate things with the settings — we didn't disable anything and also didn't add any blacklists.

From our experience, many placements that don't convert shouldn't be turned off, as they often achieve the highest CTR. This, in turn, leads to an increase in the average CTR, allowing the creatives to rotate on other more expensive and converting placements at a lower cost. If you disable such placements, usually the conversions disappear even from the best sources.

It's worth mentioning that Advertlink has another characteristic — the decay of conversions happens quite quickly. Therefore, a couple of times per month, we increased the cost per click by 50% and then gradually lowered it again.

In the end, we achieved a 33% ROI on this case — we only spent a few hours on everything, and then the showcase worked for us.

It's important to note that towards the end of the month, the conversions dropped, so we needed to upload new news and create new teasers. An option for the lazier ones is to give these teasers a few weeks of rest and then relaunch them.

If you want to test the advantages of arbitrage on a news showcase as well, join KMA.biz.