{"id":1568,"date":"2016-09-09T11:00:14","date_gmt":"2016-09-09T11:00:14","guid":{"rendered":"https:\/\/academy.mobidea.com\/?p=1568"},"modified":"2023-06-21T16:41:40","modified_gmt":"2023-06-21T15:41:40","slug":"affiliate-marketing-game-part-2","status":"publish","type":"post","link":"https:\/\/www.mobidea.com\/academy\/affiliate-marketing-game-part-2\/","title":{"rendered":"Affiliate Marketing Game: What Turns Advertisers On \u2013 Part 2"},"content":{"rendered":"<div class=\"mobid-before-content\" style=\"margin-top: 5px;margin-bottom: 5px;margin-left: auto;margin-right: auto;text-align: center;\" id=\"mobid-1532064289\"><div class=\"mobid-adlabel\">Advertisement<\/div><a data-no-instant=\"1\" href=\"https:\/\/www.mobidea.com\/academy\/recommends\/banner-placement-1\/\" rel=\"noopener nofollow\" class=\"a2t-link\" target=\"_blank\" aria-label=\"da\"><img src=\"https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2022\/09\/da.gif\" alt=\"\"  class=\"no-lazyload\" width=\"730\" height=\"90\"   \/><\/a><\/div><p>Did you\u00a0read the <a href=\"http:\/\/www.mobidea.com\/academy\/affiliate-marketing-game-part-1\">previous chapter<\/a>\u00a0in\u00a0this series\u00a0about\u00a0all the things Advertisers expect from your CPA\/CPL traffic?<\/p>\n<p>I hope it was useful for you!<\/p>\n<p>If it wasn\u2019t that helpful it\u2019s probably because the models alluded to aren\u2019t really related to what you\u2019re doing.<\/p>\n<p>Don\u2019t despair, though!<\/p>\n<p>In this article, you\u2019re gonna understand <strong>how to become a CPI connoisseur<\/strong>!<\/p>\n<p>Stick around for the revelation of more great info that\u2019s gonna make you a recognized, award-winning expert in the affiliate marketing field!<\/p>\n<p>Ready?<\/p>\n<p>Here\u2019s the second part!<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_81 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.mobidea.com\/academy\/affiliate-marketing-game-part-2\/#affiliate-marketing-game-going-through-cpi\" >Affiliate Marketing Game: Going Through CPI<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.mobidea.com\/academy\/affiliate-marketing-game-part-2\/#fraud-a-naughty-beast-in-affiliate-marketing\" >Fraud: A Naughty Beast in Affiliate Marketing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.mobidea.com\/academy\/affiliate-marketing-game-part-2\/#conclusion\" >Conclusion<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.mobidea.com\/academy\/affiliate-marketing-game-part-2\/#the-secret-weapon-quality\" >The Secret Weapon: Quality<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"affiliate-marketing-game-going-through-cpi\"><\/span>Affiliate Marketing Game: Going Through CPI<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Nowadays, most people use apps every day to perform various activities.<\/p>\n<p>It can be an alarm clock app, a weather app, or a social media messaging service.<\/p><div class=\"mobid-in-content-15-p\" style=\"margin-top: 26px;margin-bottom: 26px;\" id=\"mobid-2856400028\"><div class=\"mobid-adlabel\">Advertisement<\/div><a data-no-instant=\"1\" href=\"https:\/\/www.mobidea.com\/academy\/recommends\/semrush-v2\/\" rel=\"noopener nofollow\" class=\"a2t-link\" target=\"_blank\" aria-label=\"semrushtrialseo\"><img src=\"https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2022\/09\/semrushtrialseo.gif\" alt=\"\"  class=\"no-lazyload\" width=\"728\" height=\"90\"  style=\"display: inline-block;\" \/><\/a><\/div>\n<p>Whatever.<\/p>\n<p>Apps are now part of almost everything in our lives.<\/p>\n<p>Advertisers are obviously aware of the volume of app users.<\/p>\n<p>That\u2019s why they\u2019ve decided to engage on a different advertising model, providing app developers, webmasters, and Media Buyers opportunities to make more money.<\/p>\n<p>Cost per Install (CPI) consists in the <strong>advertiser paying the publisher<\/strong> every time a user installs and opens their app.<\/p>\n<p><em><strong>Related Content: <a href=\"http:\/\/www.mobidea.com\/academy\/advertisers-vs-publishers\">Advertisers vs Publishers: What&#8217;s the Difference and Relationship Status?<\/a><\/strong><\/em><\/p>\n<p>CPI is fast becoming super popular.<\/p>\n<p>In fact, it has been steadily stealing the thunder from both mobile subscriptions and PIN submits.<\/p>\n<p>Just like what happens in CPA, developers are only paying when the user performs a specific action.<\/p>\n<p>This allows advertisers to measure their customer acquisition costs.<\/p>\n<p>When an app developer decides to advertise their app in a performance marketing basis, they can either go for <a href=\"http:\/\/www.mobidea.com\/academy\/cpa-vs-cpi\">CPA or CPI<\/a>.<\/p>\n<p>Attention: bear in mind that the definitions of both CPA and CPI are very controversial and are always evolving.<\/p>\n<p>In order to save some of your precious time, I\u2019ll assume CPI stands for the cases where the conversion happens when the user installs and opens the app.<\/p>\n<p>As for CPA, let\u2019s assume it stands for those offers where the conversion takes place when the user purchases something inside the app (as is the case in regular Mobile Subscription offers).<\/p>\n<p>Ready to check an example of CPI and CPA that\u2019ll clarify things for you?<\/p>\n<p><strong>Let\u2019s use a game as an example, then:<\/strong><\/p>\n<ul>\n<li>CPI occurs when the user installs and opens an app.<\/li>\n<\/ul>\n<ul>\n<li>CPA has to do with paying only when the user makes a purchase inside the app.<\/li>\n<\/ul>\n<p>It\u2019s important to understand why advertisers choose one over the other:<\/p>\n<ul>\n<li>CPA guarantees \u201cinstant revenue\u201d users since volumes are substantially lower.<\/li>\n<\/ul>\n<ul>\n<li>In CPI, they\u2019re paying for users that may never spend a penny on the app. Even so, due to the fact that the number of installs is much higher, they predict what percentage of those should turn into active users. This prediction of the highest number of active users is what can make advertisers choose\u00a0the CPI model instead of CPA, where they\u2019d get fewer users.<\/li>\n<\/ul>\n<p>The way an advertiser approaches CPI differs from the way he perceives CPA.<\/p>\n<p>It may sound weird, but advertisers aren\u2019t always looking for committed users.<\/p>\n<p>When an app has a high number of installs, it goes up in the Google Play\/App Store ranking.<\/p>\n<p>This gives advertisers what they\u2019re ultimately looking for \u2013 visibility to reach organic users.<\/p>\n<p>For the initial high volume installs, advertisers usually look for <strong>incentivized traffic<\/strong>.<\/p>\n<p>In this type of traffic, users need to install the app to either get some reward in a game they\u2019re playing or be able to see some type of content.<\/p>\n<p>Generally, these guys won\u2019t become long-term users of the app they\u2019ve installed.<\/p>\n<p>What does this mean?<\/p>\n<p>Basically, it means that incentivized users are a way to get to those cool, money making organic users that won\u2019t be forced\/lured to download an app.<\/p>\n<p>Instead, they\u2019ll decide to download it without seeing any advert because they\u2019re genuinely interested in it.<\/p>\n<p>This way, developers will pay for the initial downloads only as bait for the real users they\u2019re looking for and that\u2019ll be acquired for free.<\/p>\n<p>Nonetheless, if advertisers want real paying users instead of just many users to go up in the rankings, they\u2019ll become more demanding with the quality of traffic.<\/p>\n<p>They need to take the LTV (lifetime value of the user) each publisher delivers into account.<\/p>\n<p>Why? So they can select which ones they want to see promoting their products.<\/p>\n<p>At the beginning, advertisers may lose some money until enough time has passed for them to be able to analyze the long-term value of users they\u2019ve lured via CPI.<\/p>\n<p>Let\u2019s take a look at this example.<\/p>\n<p><a href=\"https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2016\/09\/ltv-example.jpg\"><img decoding=\"async\" width=\"700\" height=\"393\" class=\"aligncenter size-large wp-image-10928\" src=\"https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2016\/09\/ltv-example-700x393.jpg\" alt=\"ltv example\" srcset=\"https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2016\/09\/ltv-example-700x393.jpg 700w, https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2016\/09\/ltv-example-250x140.jpg 250w, https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2016\/09\/ltv-example-768x431.jpg 768w, https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2016\/09\/ltv-example-1024x575.jpg 1024w, https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2016\/09\/ltv-example-760x428.jpg 760w, https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2016\/09\/ltv-example-623x351.jpg 623w, https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2016\/09\/ltv-example-316x177.jpg 316w, https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2016\/09\/ltv-example-150x84.jpg 150w, https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2016\/09\/ltv-example-120x67.jpg 120w, https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2016\/09\/ltv-example.jpg 1585w\" sizes=\"(max-width: 700px) 100vw, 700px\" \/><\/a><\/p>\n<p>Here, the advertiser opted for a CPI of \u20ac10 after gathering enough data on their LTV.<\/p>\n<p>For every 10 app installs, only an average of 4 became active users of the app.<\/p>\n<p>From those active users, only an average of one user became a paying user.<\/p>\n<p>Spending around \u20ac25\/month on the app (Average Revenue Per Paying User or ARPPU) for an average of 4 months (user retention period), the users of this app have an LTV of \u20ac100 (spending \u20ac25\/month during 4 months means a total spending during the \u201clifetime\u201d of \u20ac100).<\/p>\n<p>The LTV divided by the initial number of installs indicates how much the advertiser should spend on each CPI payout (\u20ac100 divided by 10 installs = \u20ac10 CPI).<\/p>\n<p>Advertisers may want your users as pure bait.<\/p>\n<p>Even so, they\u2019ll be happy if even those turn out to be active, paying users!<\/p>\n<p>Good quality traffic is always the most important metric to take into account if you wanna make advertisers smile.<\/p>\n<p>Guess what?<\/p>\n<p>Happy advertisers = more good offers for you!<\/p>\n<p>Advertisers usually want to see the affiliate IDs that generated each click on the banner.<\/p>\n<p>This way, they can ask the affiliate network to cut that specific source of bad traffic.<\/p><div class=\"mobid-in-content-15-p_2-2\" style=\"margin-top: 26px;margin-bottom: 26px;\" id=\"mobid-1003263181\"><div class=\"mobid-adlabel\">Advertisement<\/div><a data-no-instant=\"1\" href=\"https:\/\/www.mobidea.com\/academy\/recommends\/semrush-v1\/\" rel=\"noopener nofollow\" class=\"a2t-link\" target=\"_blank\" aria-label=\"backlinks\"><img src=\"https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2021\/03\/PD-970x250-Discover-backlinks-faster-than-ever-1.png\" alt=\"\"  srcset=\"https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2021\/03\/PD-970x250-Discover-backlinks-faster-than-ever-1.png 970w, https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2021\/03\/PD-970x250-Discover-backlinks-faster-than-ever-1-250x52.png 250w, https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2021\/03\/PD-970x250-Discover-backlinks-faster-than-ever-1-700x144.png 700w, https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2021\/03\/PD-970x250-Discover-backlinks-faster-than-ever-1-768x158.png 768w, https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2021\/03\/PD-970x250-Discover-backlinks-faster-than-ever-1-120x25.png 120w\" sizes=\"(max-width: 970px) 100vw, 970px\" class=\"no-lazyload\" width=\"970\" height=\"200\"  style=\"display: inline-block;\" \/><\/a><\/div>\n<p>They often also set a cap.<\/p>\n<p>How come?<\/p>\n<p>So they don\u2019t go over the budget destined for that specific campaign.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"fraud-a-naughty-beast-in-affiliate-marketing\"><\/span>Fraud: A Naughty Beast in Affiliate Marketing<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Ever heard of <a href=\"http:\/\/www.mobidea.com\/academy\/affiliate-fraud\">affiliate fraud<\/a>?<\/p>\n<p>It\u2019s a real nightmare and the thing that worries most CPI advertisers.<\/p>\n<p>They can decide to block you as a source of traffic if:<\/p>\n<ol>\n<li>You bring incentivized traffic when it\u2019s not allowed.<\/li>\n<li>Your CR is abnormally high because advertisers believe there is a great number of installs created by a robot.<\/li>\n<\/ol>\n<p>Important info to never forget:<\/p>\n<p>Please be aware that many websites\/companies that promise cheap app installs for apps are mere fraudulent schemes that can raise flags about the legitimacy of your traffic and get you banned from sending traffic to CPI offers.<\/p>\n<p>Indeed, fraud is a gigantic bane upon us all. It has caused a lot of restrictions in the market and forced advertisers to start analyzing new indicators.<\/p>\n<p>One of these is KPI (key performance indicators). KPI can be a specific retention rate, reaching some level in a game, or purchasing something.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>If you\u2019ve read the <a href=\"http:\/\/www.mobidea.com\/academy\/affiliate-marketing-game-part-1\">first part<\/a> of this series,\u00a0I\u2019m sure you\u2019ve been able to understand that volumes are a CPA advertiser\u2019s first and only real love.<\/p>\n<p>Guess what?<\/p>\n<p>When we talk about CPI advertisers, it\u2019s exactly the same thing.<\/p>\n<p>Now let\u2019s think about how CPI advertisers can get <strong>higher volumes<\/strong>.<\/p>\n<p>CPI Advertisers can:<\/p>\n<ol>\n<li>Create campaigns that allow incentivized traffic.<\/li>\n<li>Increase payouts. Advertisers can increase or decrease payouts depending on the source quality.<\/li>\n<li>Waive the need for KPI. This way, advertisers pay as soon as the user installs and opens the app.<\/li>\n<\/ol>\n<h3><span class=\"ez-toc-section\" id=\"the-secret-weapon-quality\"><\/span><span style=\"color: #000000; font-size: 14pt;\">The Secret Weapon: Quality<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>If they\u2019ve got enough data, advertisers can start optimizing campaigns and increasing traffic quality.<\/p>\n<p>What am I talking about?<\/p>\n<p>Users that install the apps and become paying users.<\/p>\n<p>Advertisers can use KPIs such as:<\/p>\n<ol>\n<li>Retention rate &#8211; The number of people who keep using the service\/app for a specific period defined by the advertiser.<\/li>\n<li>Registration rate \u2013 The number of people who register as users. For example, social networks such as Facebook or Twitter.<\/li>\n<li>Buying rate \u2013 The number of purchased items.<\/li>\n<li>CPA Apps \u2013 You get paid when a minimum amount purchase is made.<\/li>\n<\/ol>\n<p><em><strong>Learn More: <a href=\"http:\/\/www.mobidea.com\/academy\/kpi-cpi-campaignsaigns\/\">Key Performance Indicators (KPIs) in CPI Campaigns<\/a><\/strong><\/em><\/p>\n<p>Advertisers are super important parts of the game and I know that &#8211; after you\u2019ve read these two cool articles &#8211; you\u2019ve become fully able to understand why!<\/p>\n<p>I really hope this article helped you dig out the deepest secrets of the CPI game.<\/p>\n<p><strong>Remember:<\/strong><\/p>\n<p>Advertisers experience an endless, eternal quest for the best traffic quality!<\/p>\n<p>In this honourable mission, they\u2019re gonna need a whole lotta awesome affiliates such as yourself!<\/p>\n<p>If you&#8217;re still asking yourself what&#8217;s the deal with CPI and CPA, don&#8217;t hesitate and check out our article\u00a0regarding these two price models.<\/p>\n<div class=\"mobid-after-content\" style=\"margin-top: 5px;margin-bottom: 5px;margin-left: auto;margin-right: auto;text-align: center;\" id=\"mobid-4223487709\"><div class=\"mobid-adlabel\">Advertisement<\/div><a data-no-instant=\"1\" href=\"https:\/\/www.mobidea.com\/academy\/recommends\/banner-placement-2\/\" rel=\"noopener nofollow\" class=\"a2t-link\" target=\"_blank\" aria-label=\"da\"><img src=\"https:\/\/www.mobidea.com\/academy\/wp-content\/uploads\/2022\/09\/da.gif\" alt=\"\"  class=\"no-lazyload\" width=\"730\" height=\"90\"   \/><\/a><\/div>","protected":false},"excerpt":{"rendered":"Did you\u00a0read the previous chapter\u00a0in\u00a0this series\u00a0about\u00a0all the things Advertisers expect from your CPA\/CPL traffic? I hope it was useful for you! If it wasn\u2019t that helpful it\u2019s probably because the models alluded to aren\u2019t really related to what you\u2019re doing. Don\u2019t despair, though! In this article, you\u2019re gonna understand how to become a CPI connoisseur!&#8230; <a class=\"view-article\" href=\"https:\/\/www.mobidea.com\/academy\/affiliate-marketing-game-part-2\/\">View Article<\/a>","protected":false},"author":13,"featured_media":1618,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8954],"tags":[211,213,227,169,171,172,186,188],"learning_paths":[],"class_list":["post-1568","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-affiliate-marketing","tag-mobile-marketing","tag-offers","tag-traffic","tag-advertisers","tag-affiliate-industry","tag-affiliate-marketing","tag-cpa","tag-cpi"],"translation":{"provider":"WPGlobus","version":"3.0.0","language":"en","enabled_languages":["en","ru"],"languages":{"en":{"title":true,"content":true,"excerpt":false},"ru":{"title":true,"content":true,"excerpt":false}}},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.1 (Yoast SEO v26.1) - 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