Every week we ask the most prominent experts in the affiliate marketing industry one question that concerns us all.
Hello everyone!
And welcome to our new weekly rubric – expert briefing from the industry leaders.
Every week we ask the most prominent experts in the affiliate marketing industry one question that concerns the community.
These weekly briefings can help everyone to stay up to date with the latest trends and also better make the most crucial decisions.
In our first briefing we try to better see how the price of traffic is affected by the pandemic.
And the question is as simple as that:
DURING THE PANDEMIC HOW PRICES HAVE CHANGED ACROSS DIFFERENT TRAFFIC SOURCES?
So in this episode we talk to:
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Renz Gonzales.
Business Development Manager at PropellerAds
We see a significant increase in Italian traffic – by almost 90% over the past two weeks.
Spain over the same period grew by about 20%. Traffic from these countries has risen in price, but not more than by 15-20%, depending on the platform and type of traffic. German traffic is relatively stable, volumes increased by about 10%, and cost – by 10-15%
Sports continue to drop. Now down by 30%
Movies posted the biggest growth across all verticals +65%
Content on demand has added +25%
Anime is up by +27%
Free download services have seen an increase of +55%
Viral content websites are +11% (Germany, Nigeria, and the US)
Traffic is definitely growing. Particularly sharp growth is observed in European countries, where the situation is not very favourable due to the coronavirus: Italy, France, Spain, Germany.
For example, Italian traffic over the past 10 days has become almost 2 times more.
Most of the traffic is poured on the vertical, which are somehow related to online entertainment: games, applications, software, VoD, as well as sweepstakes. But offers related to sports, certain areas of e-Commerce (especially, of course, travel), dating and offers that offer offline banking services are losing their positions. In the near future, we expect an increase in demand for offers with video chats.
While we see the growing volumes and demand for European traffic, advertisers somewhat reduced the purchase of traffic from Asian and Arab countries India, the Philippines, Vietnam, Indonesia), as well as Brazil. This is primarily due to the fact that some large owners of offers have frozen budgets or suspended activities.
Given the decline in competition, this is an opportune moment to test new combinations for these geo.
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Anna Blaivas.
Sales Director at TwinRed
Regarding the prices: I see that we haven’t seen much change. I think it’s because strong offers (Cams, premium dating, gaming etc) are going strong at the moment due to the situation – so in fact the prices on high quality, premium traffic have even increased.
In fact the prices on high quality, premium traffic have even increased. (Anna Blaivas | TwinRed) Click To TweetBecause we have a very strong advertiser side (strong, clean offers) and we match it with a lot of high quality direct sites – this has contributed to sustained and even increased prices
Read at affpeople: Peter from TwinRed: new reality, new role, new network and new opportunities
George Minski.
Business Development Manager at Clickadu
Since we purchase traffic from site owners, the price on that side has not changed much. But CPMs logically decreased, since a significant number of partners reduced their offers’ payouts. The crisis time affected all sides – media buyers, affiliates and large market players.
But in the middle of this “snowball” is the user’s paying ability decreasing. In the end, it is necessary to break through more traffic to achieve the same result as before.
Hen Kinan.
VP Business Development at Shinez
Comment regarding Facebook traffic pricing change.
We run viral content. In the start of the pandemic (march 6-7) we saw prices go down, but overall I believe that in Facebook it has stabilised to be much of the same.
We all purchase online and pretty fast we as marketers found out what we should promote.
Read at affpeople: Hen Kinan: we create content, we create volume, we create value
Ilya Konon.
Head of Zorka.Network
TikTok has become a fun escape from all the gloomy news about the virus and its economic loss for huge amount of people. I guess the ad platform is seeing increased demand from advertisers currently as its audience grows and ages up during the COVID-19 pandemic.
The app was installed around 300kk times for the past 3 months (think the number is even bigger, cause we do not have clear data about Android installs in China which is no doubt massive aspect).
Ad platfrom’s got stand out success as for new users and ad spend equally. “Recommendations” algorithm was also changed a bit, yet still the trend for decreasing CPM is of great promise.
(Below I have compared CPM for the past 4 months based on the statistics of our agency account)
Feb: 0.5-0.7$
March: 0.5-0.6$
April: 0.25-0.4$
May: 0.27 -0.3$
The COVID-19 pandemic is cutting a wide swath across all business sectors and verticals, which inevitably affects the advertising budgets at all levels. (Ivan Doruda | MGID) Click To Tweet
Ivan Doruda.
Vice President of Sales, MGID
Monitoring the impact on different channels The COVID-19 pandemic is cutting a wide swath across all business sectors and verticals, which inevitably affects the advertising budgets at all levels. Average CPC rates decreased by 20-25%, but it all depends on the niche and geo. Branded content projects and premium placements have faced the largest slump, with a decrease of more than 80%. ECommerce marketers operate mostly with the same budgets, but their categories have changed to fit consumers’ needs.
Facebook traffic rose by 27% over the last month, while the news sites reached a more than 75% increase during this period. (Ivan Doruda | MGID) Click To TweetBy contrast, certain products and niches have experienced steady growth during the lockdown. Affiliates saw the greatest spike in the following verticals: smoking cessation, nutra and beauty, gaming, and dating. This may also change in the nearest future, so the best advice here would be to be able to redeploy available resources and skills to the niches with the highest demand.
As users consume more digital content during the lockdown, traffic volumes have spiked across all channels. Facebook traffic rose by 27% over the last month, while the news sites reached a more than 75% increase during this period. At the same time, CTR rates remain at the same level or even higher, which means that the majority of ads stay relevant and users are receptive to clicking on them.