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Part 4 - Traffic Test - Show Me the Money!

20190716_money Analytics can generate exceptional returns.

This is the third in the series on running a traffic test. The first three articles in the series can be viewed at:
Part 1 – Baseline Data

Part 2 – Focusing on Performance
Part 3 – Improving the Revenue

Escrow.com

In the previous three articles I’ve been taking readers through an actual traffic test that a real prospective client is doing with ParkLogic (I'm a co-founder). I have not doctored the numbers or done anything to make them look better. They’re the real deal.

The traffic test is now at the stage where we are looking at really putting the foot down to maximise the revenue. Overall, there has been a 36% uplift in revenue, which for most people this would be an outstanding result. Once you begin to dig into the numbers the results look even better.

The following chart compares the performance of the latest week’s data versus the baseline as a percentage for various traffic levels. For instance, for domains where we saw at least the same level of traffic as the baseline there was a 46% uplift in revenue, for domains with at least 80% of the traffic, an overall 43% uplift. This continues on until for all domains it’s just shy of 36%.

Results by traffic level

 All domains will have varying traffic levels over time and what this chart displays is the performance of the traffic test at the different traffic levels. Since domains with less traffic take longer to optimise then it also suggests that the low traffic domains still have potential upside that is yet unrealised.

The results are then reflected in the following two charts that show both the Revenue and plRPM trends are continuing move upwards. At some stage we anticipate they will reach a maximum point, but the data is showing this still has not been reached. As time goes by the long tail, low traffic domains will likely reach their maximum yield, and this will flatten off the trend line.

Overall performance
 
What’s really interesting is if we sent the bottom 10 worst performing domains back to their baseline…..what happens to the results now? For a start, as the chart below shows, there is a 95% increase in overall revenue. That’s basically doubling the revenue line generated from the traffic...or for baseball fans, we knocked the ball out of the park!

Monetisation by traffic level

So what happened to the ten non-performing domains? The reality is the baseline data is from a snapshot in time and the traffic test is across another point in time. Some of the domains may not be performing due to seasonality, advertiser demand or a myriad of other reasons. What this suggests is the baseline data has changed and is actually not as high now as it previously was. There’s only one way to verify this claim….and that’s to re-baseline this group of domains.

This has been a good news story for this prospective client but is not atypical. We work with a lot of domain investors and it’s our detailed analytical approach that enables them to get high returns from their investments.

What this test also shows is that monetising domain traffic is alive and well….it’s just changed. If you’ve been doing the same thing you’ve always been doing and watching your numbers decline year after year then for goodness sake, make a change. There’s a LOT of money you’re leaving on the table….so please feel free to reach out to me so we can at least have a chat about improving your revenue.
 

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Friday, 13 December 2019
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