Traffic arbitrage on Facebook is one of the most effective ways to monetize traffic. However, in order to make a profit, it is necessary to correctly determine the cost of a click and conversion.
The cost per click is the amount you pay for each click on your ad. It depends on many factors, such as the subject of advertising, competition in the market, the quality of the advertisement, etc.
To determine the cost of a click, it is necessary to test advertisements. For example, you can create multiple ads with different titles, descriptions, and images. Then run them simultaneously and track the cost per click for each ad. This way, you will determine which ad works best and what cost per click you are willing to pay.
Conversion is the percentage of users who have completed a targeted action on your site after clicking on an ad. The target action can be the purchase of a product, filling out a form, subscribing to a newsletter, etc.
To determine the conversion, you need to install goal tracking on your site. For example, if you sell products, then track the number of sales that were made after clicking on the ad. If you offer services, then keep track of the number of applications that have been filled out.
As a rule, the conversion depends on the quality of the ad and the landing page. To increase conversion, you need to make sure that your ad attracts the attention of users and that the landing page contains the information that users are looking for.
An example from practice:
Let's say you sell cosmetics and have launched an advertising campaign on Facebook. You managed to attract 1,000 users to your site at a price of $0.50 per click. However, only 10 users have made a purchase on your site. This means that your conversion rate is 1%.
To increase the conversion rate, you decided to change the ad and the landing page. You have created a new ad with a brighter image and a more attractive description. You also changed the landing page by adding more product information and customer reviews.
After launching a new ad, you have attracted another 1,000 users to your site at a price of $ 0.50 per click. However, this time 50 users have made a purchase on your site. This means that your conversion rate is 5%.
Thus, you have increased the conversion by 5 times without increasing the cost per click. This shows that the correct determination of the cost of a click and conversion is a key factor for successful traffic arbitration on Facebook.
