Risks and opportunities—what do they really mean?
There's a million-dollar question: what model is the best? The straightforward answer is that this is the wrong question. Trying to answer this question directly? You're off track. If all you're doing is slashing costs and sticking to one model in user acquisition, you're missing the bigger picture. It's not about picking the top model; it's about blending them for the best results.
Advertisers, affiliates, publishers, media buyers - all of us like low risk, right? But risk-taking is not part of the game, it’s the whole game. Predictability traps you in your comfort zone, leading to defeat.
People say business is education, but only in practice. Taking risks and facing failure is the tuition fee for knowledge. Success brings profit and valuable expertise as a bonus.
Paid Media (CPC/CPM) vs Performance (CPA/CPS) - Risks and opportunities
Most online traffic relies on RTB, a tool automating ad buying. Advertisers bid instantly, ensuring relevant ads reach users. RTB auctions are swift and efficient, driven by technology and algorithms. Overall, it’s one of the best tools for optimizing your digital advertising campaigns.
RTB doesn't use CPA or CPS models, but each has strengths. They offer low risks and charge only for desired actions. CPS and CPA provide control, correlating banner quality with conversions. However, relying solely on them risks missed opportunities. It's vital to structure workflows to avoid missed chances and lower margins.
RTB works with paid media sources such as social, search, native, push notifications, SMS, and email. . These channels provide great opportunities for advertisers and media buyers, with the largest databases of financially capable users. Here we operate on models like CPM (Cost Per Mile, which is Latin for 1,000) or CPC (Cost per click, thanks, we managed without Latin). However, there are risks to consider: you might see no volume, lose money on clicks that don't convert to leads or sales, partner with the wrong entity, spend heavily before results, or encounter fraud.
Mitigating Risks Amid Everything Everywhere All at Once
You have the option to bring on internal paid media experts. They become your own easily manageable sources of valuable insights. However, the process involves finding and training them on diverse mechanics, like handling different audience segments across various platforms, which can be time-consuming and costly.
But what if you can't find the right expert to hire? In that case, consider working with an agency that offers managed services. Whether you're a CPA company or not, you'll gain access to a team of experts without the hassle of hiring. You can maintain tight control over campaign performance or opt to delegate, while still retaining access to ample data (traffic, KPIs) and keeping most of the margin for yourself.
Picture this: a Google employee running your Google campaign, aligning perfectly with your KPI targets. Would you say no?
