Why Traffic Optimisation Provides Greater Revenue

We recently had a new client that does a significant amount of domain traffic revenue come across to ParkLogic (I'm a co-founder) for a test. They were previously with a single parking solution and I thought it would be interesting to share with you the results as a case study in why domain traffic optimisation works.

After 6 days the overall results a 20% uplift in revenue…..which is quite a good given the short time frame. It's still early days for the optimisation process to kick in and effectively route the low traffic domains to the highest paying monetisation solution.

When you begin to unpack the data a little further an even better outcome is just on the horizon. For instance, for all those domains that have exhibited at least the same traffic levels as the previous month’s baseline the uplift in revenue has been 39%.

If we hand back to the client, the bottom 10 worst performing domains out of nearly 4,000 in the test then the results completely change. Overall, the performance is a 41.2% revenue uplift with a 75% increase in revenue for domains that had at least the same traffic as the baseline. This is a HUGE result where the revenue line has nearly doubled!

I wouldn't be surprised if the revenue line continues to increase over the next 6 weeks as the optimisation process hones in on the best performing solution. From that point onwards, optimisation will continue every second of every day.

 
The question must be asked, “How are these results possible?”

Let me share with you the following animated GIF (if it’s not animating then just refresh the page). This is a data snapshot for a single client across a period of 11 days and illustrates which parking solution is winning their traffic.

There’s a few things we can learn from this data.
1.    No company wins more than 35% of the traffic.
This means, if you have ALL of your domains with a single monetisation solution then the best cast scenario is you are losing 65% of the time…..bit depressing really.

2.    There is a HUGE variability in who wins the traffic
There is a large upside if you can exploit the massive daily swings between monetisation solutions.

3.    Every parking company wins a portion of the traffic at a point in time.
To maximise revenue, you only want to send to a monetisation solution the traffic where they pay more than anyone else.

4.    Running a traffic test manually is next to impossible.
If you plan on manually changing DNS settings on your domains you are not taking advantage of the daily swings and you end up leaving a lot of money on the table. Technology has far outstripped manually doing your own traffic tests.

Are parking solutions bad? NO! They have all developed unique intellectual property for a subset of your traffic….the data clearly shows that they do not perform on ALL the traffic but they definitely do perform on some of your traffic.

What the animated GIF did not take into account is that more and more of the traffic is being won by the global advertising networks. To win the traffic, these networks must pay more than the best performing parking solution at that instant in time. In fact, an auction takes place within less than 100 milliseconds for every piece of traffic where the winning offer is then forwarded the traffic.

Many of you need to re-read the previous paragraph because it unlocks massive revenue potential.

The secret to increasing the revenue for the new ParkLogic client is to send the traffic to each provider that pays the most for it…..this provides a greater yield for the domain owner.  In other words, we find a monetisation solutions sweet spot and send them that traffic.

ParkLogic has been optimising domain traffic across monetisation solutions for over 11 years and during this time our systems and processes have become very good. I don’t say this as a way of bragging but more as a statement of fact.