Affiliate basics

What is traffic arbitration?

To begin with, we have to know some basic terms which make understanding the topic easier. In the article we will also try to explain terminology.

What is traffic? - the total amount of the users from different internet sources who have seen your ad is called traffic in the close community of digital marketing.
What is arbitration? - it is an action which aim is to gain profit from prices difference. Buy cheap, sell more expensive.
What is traffic arbitration? - gaining the profit from difference between purchaising/ capturing traffic and a sum recieved from reselling/monetization.

How does an affiliate earn money? How does it work? What does monetezation mean?

An affiliate finds the traffic (buys or generates) single-handedly. It means he or she finds the users to whom the ad of 3-d person is shown and who are ready to pay for a particular action. The affiliate promotes the product which does not belong to him or her. It is universally called affiliate marketing or CPA marketing. These two terms are practically the same.

 For example, there is a company that wants to get new users in its new app. Marketing consultants of the company create affiliate programme and set the terms. They are ready to pay, say, 2 $ for installing their app. The desired action for the company in this case is installing the app. It is agreed to call this action "conversion". So anyone who brings a user and makes him or her install the app earns 2 $.

One conversion is 2 $

It is profitable to the company mainly because they pay for the exact result, for the desired action. Affiliate programme makes it possible to save money on inner marketing.
So people who bring new users to publishers and make users perform desired action (conversions) are called affiliates.

How can the company understand that it was "my" user?

Each affiliate has a personal link which contains a unique identifier. Using it publisher can monitor whose conversion it is.

What types of action are there? 

The main actions are installing, sale, subscription, signing up. The terms may be simple (like just installing) or more complicated (you have to install, open the app and perform a particular action).

What is the main role of the affiliate?

To find the traffic and to find/create such an ad campaign that could perform the highest conversion.

How much is it possible to earn?

A lot.


Having figured out the basics now we are ready to learn more about the most essential parts of this great chain link, to understand how everything works.
Let's concentrate on traffic firstly.

What types of traffic do we know and where can you find the traffic?

There are several types of traffic devided into the way ad message is shown to the users and in the engaging channels.
Now let's look upon it thoroughly.

The main types of traffic (the way in which a user interacts with your ad):
Native ads

Native ads are really popular in Russia but we call them "teasers". Actually the name is charactonym and says a lot about the type. The ad is a part of the internet resource where it is located. For instance, you are reading an article and come across the ads which seem like a part of the article on the page. Native ads or "teasers" are usually picture plus text under it.