How to choose a bundle with maximum ROI: data analytics and hypothesis testing

How to choose a bundle with maximum ROI: data analytics and hypothesis testing
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6min.

In the world of traffic arbitrage, ROI (Return on Investment) is the main indicator of the success of an advertising campaign. In order to maximize ROI, you need to choose the right mix: traffic source, offer and creative. In this article, let’s find out what analytical tools to use and how to test hypotheses to increase ROI.

Data analysis: what is important to consider?

When arbitrating traffic, it is important to analyze key metrics that affect performance:

CTR (Click-Through Rate)

The click-through rate of an ad.

CR (Conversion Rate)

The percentage of users who take a targeted action after a click.

EPC (Earnings Per Click)

The average revenue generated from each click.

CPC (Cost Per Click)

The cost per click on an advertisement.

LTV (Lifetime Value)

The cumulative revenue a customer generates over the entire time they interact with a product.

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Analytics tools:

Tracking systems: Voluum, Binom, Keitaro – help track data and analyze campaign performance.
Spy services: AdSpy, BigSpy, Anstrex – allow you to study successful bundles of competitors.
Google Analytics and Facebook Pixel: necessary for deep analysis of audience behavior.

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How to test hypotheses?

A/B testing

Test creatives: Run multiple ad variations and choose the most converting one.
Landing pages test: Change headlines, texts, application forms and calls to action.
Audience Test: Test different geos, interests and demographics.
Offers test: Compare different offers in the same niche.

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Analyze results

After testing is important:

Evaluate CTR and CR at each stage of the funnel.
Calculate ROI and EPC on different bundles.
Filter out ineffective hypotheses and scale the best bundles.

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Optimization and scaling

After finding a profitable mapping, it is important to:

Optimize budget

Reallocate funds in favor of effective campaigns.

Improve the sales funnel

Adapt the offer, creative or targeting.

Scale traffic

Increase ad investment and expand your audience.

Conclusion

Choosing the right bundle is an ongoing process of analyzing and hypothesis testing. The more data you collect and analyze, the higher the chance of maximizing ROI.

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