How to improve CR, CTR and ROI in arbitrage?

In traffic arbitrage, launching a company is half the battle. After that, you need to track the results. Such indicators as CR, CTR and ROI will help you evaluate the effectiveness of your campaign and make timely changes.

What is CR (conversion rate)?

Conversion Rate (CR) is the percentage of the total number of visitors who made a targeted action. For example, in an online store, 10 out of 1000 users bought a product. The conversion rate is 1%. Every field has its own acceptable conversion rate. For example, for e-commerce it is 2-3%. Above 5% is already a good result.

How can you improve your conversion rate?

Download speed

First and foremost, check the site for loading speed. Users don't like to look at the circle around the cursor. Check the loading speed of the site. An index above 80 is considered good.

Put real customer reviews on the landing page

People tend to trust the opinion of others, especially if they see that a product or service has many positive reviews. This creates a sense of security and confidence in the choice.

Use ratings and logos of well-known brands

When potential customers see that a product or service is used by well-known companies or has a high rating on reputable platforms, it increases brand trust.

Simplify your sales funnel

Complex and long sales funnels can scare users away. The fewer steps a user has to go through to complete a purchase, the more likely they are to do so.

Study successful examples from your niche and adapt them

Successful case studies from your niche help you better understand the needs and preferences of your target audience.

Use calls to action (CTA)

Clear and compelling calls to action, such as “Get a discount today!” encourage users to take the next step, whether it's a purchase, registration or subscription.

Avoid grammatical errors

Grammatical errors can undermine brand credibility and give the impression of unprofessionalism. At the same time, flawless texts demonstrate attention to detail and a professional approach.

Check the forms and payment methods

If forms on the site are difficult to fill out or payment methods are inconvenient, it may discourage users. Make sure that all form fields can be filled out and are displayed correctly. Check that all payment methods work and that users understand how to use them.

What is CTR (click-through rate)?

CTR (click-through rate) is the ratio of the number of clicks on an ad to the number of impressions. For example, if an ad is shown 100 times and clicked on 5 times, the CTR will be 5%.

How to increase CTR?

Analyze the timing of audience activity

Identify peak hours of activity.

Don't jump to conclusions

Give the campaign a few weeks to see consistent results.

Set up targeting

Check the settings and select the most appropriate audience.

Update the creatives

Study your competitors' examples and adopt their ideas.

Optimize titles and descriptions

Use attractive and clear headlines to grab attention.

What is ROI (return on investment)?

ROI (return on investment) — is an indicator that helps to assess how profitable the investments are. It is calculated according to the formula:

Where:

• Profit - revenue generated by the campaign,
• Investments - advertising costs.

Suppose you spent 10,000 rubles on an advertising campaign and it generated 15,000 rubles in revenue.

Profit - Investment = 15,000 - 10,000 = 5,000 rubles

Then divide the net profit by the investment: 5,000 / 10,000 = 0.5.

Translate into percentages: 0.5 × 100 = 50%

How do you increase ROI?

Keep an eye on traffic volumes

Estimate how much traffic you need for a return on investment.

Don't ignore the statistics

Analyze data across all metrics.

Reduce consumables costs

Utilize free alternatives whenever possible.

Choose the right traffic sources

Consider lower-cost platforms to launch campaigns.

Compare rates in affiliate programs

Study the offers and choose the most favorable ones.

Testing and optimization

Constantly testing different elements of an ad campaign allows you to find the best combinations to increase CR, CTR and ROI.

What to test?

• Audiences. Try different target groups and segments.
• Creatives. Test different images, videos, and text ads.
• Targeting settings. Change settings to find the most effective ones.

How to conduct the testing?

Run two versions of an ad at the same time and analyze which one works better. This is called A/B testing.

Process Automation

Automation allows you to reduce time spent on routine tasks and focus on strategy and analysis.

How to automate?

Use tools to automate advertising campaigns

Google Ads and Facebook Ads offer automated bid management strategies.

Customize automatic reports

Get regular reports on campaign performance to keep up to date with changes.

Optimizing budgets

How to optimize budgets?

Set limits for each channel

Determine how much you're willing to spend on each ad campaign and stick to the budget.

Reallocate budgets

Increase spending on profitable campaigns and reduce spending on less effective ones.

Use a proxy

In arbitrage, it is important to set up campaigns from different geolocations. Proxy servers can help with this. They mask the IP address and change the geolocation.

Why do you need proxies?

Proxies allow you to:

• Customize campaigns from different countries.
• Test creatives. Test ads in different regions.

Examples of successful cases

To understand how to apply the recommendations, let's look at a few examples of successful cases:

Case 1: Increasing CR with testimonials

Company. An online electronics store.

Problem. Low conversion rate due to lack of trust.

Solution. Adding a section with customer testimonials and using photos of real customers.

Result. Conversion increased from 5% to 15% within a month.

Case 2: CTR optimization through targeting

Company. Online programming courses.

Problem. Low CTR of advertisements.

Solution. Revising targeting and adapting ads to the new target audience.

Result. CTR increased from 2% to 8% in two weeks.

Case 3: Increasing ROI through the right choice of affiliates

Company. An affiliate program to sell software.

Problem. Low ROI due to high rates in affiliate programs.

Solution. Search for less known but profitable offers.

Result. ROI increased from 10% to 30%.

Launching an advertising campaign is just the beginning. It's important to carefully analyze the metrics and make necessary changes to avoid mistakes and increase efficiency. Keep an eye on CR, CTR and ROI and don't forget about the importance of quality content and ease of interaction with your site. This is the key to successful arbitrage and stable income.