About Media Buy

I. Affiliate Marketing System Analysis

  1. ​Definition and Core Logic
    Affiliate marketing is a performance-based internet marketing model where advertisers (merchants) collaborate with affiliates through affiliate networks. Affiliates drive users to complete specific actions (e.g., purchases, registrations, downloads) via their owned channels (websites, social media, email lists, etc.) and earn commission shares. Its core lies in "performance-based payment," reducing risks for advertisers.

  2. ​Key Roles and Responsibilities
    Advertisers (Merchants)
    Provide products/services, set commission policies (CPS/CPA/CPL), and recruit affiliates through networks. Examples: Amazon Associates, Shopify Partner Program.

Affiliate Networks
Act as transaction hubs, offering tracking technology (tracking pixels), data reporting, and commission payouts. Leading platforms: CJ Affiliate, ShareASale, Awin. Some platforms serve dual roles, connecting advertisers and affiliates.

Affiliates
Categories include content creators (blogs, review sites), coupon sites (Honey, RetailMeNot), social media influencers, and email marketers. Top affiliates earn millions in monthly commissions.

Consumers
Execute final conversions. Their clicks/purchases are tracked via cookies or device IDs.

  1. ​Business Model Categories
    CPS (Cost Per Sale)
    Revenue sharing based on sales (typically 5%-30%). Common in e-commerce.

CPA (Cost Per Action)
Payment per specific action (e.g., app installs, form submissions). Preferred in finance/education industries, with commissions ranging from 50–200 per conversion.

CPL (Cost Per Lead)
Payment per valid lead. Used in insurance/B2B sectors, costing 2–20 per lead.

Hybrid Models
Tiered commissions (higher sales = higher rates) or fixed + variable combinations.

  1. ​Profit Model Deep Dive
    Affiliate Revenue Paths

  • Direct commissions: Earned via referral links.

  • Tiered commissions: Earnings from recruiting sub-affiliates (MLM model).

  • Ad premiums: Monetizing high-traffic sites with ad placements.

Advertiser ROI Model
LTV (lifetime value)-driven strategies allow upfront losses for user acquisition. Example: Credit card sign-ups with 50commissionscanjustifyhighercostsifusersspend2,000 annually.

Network Revenue Streams
Service fees from advertisers (~30% commission cuts) or membership fees from affiliates.

  1. ​Industry Data and Trends

  • Global affiliate marketing market to reach $13 billion by 2025 (Statista).

  • Mobile conversions exceed 60%, making app promotions critical.

  • Stricter regulations: GDPR, CCPA require transparent data tracking.

II. Media Buy Tactics Breakdown

  1. ​Definition and Mechanism
    Media buying involves purchasing ad inventory to monetize traffic. The core strategy is "buying low-cost traffic and selling high-value conversions." Affiliates use platforms like Google Ads or Facebook Ads to drive users to affiliate links, optimizing ROAS (return on ad spend) for profit.

  2. ​Key Participants
    Traffic Suppliers
    Include:

  • Search engines (Google/Bing ads)

  • Social media (Facebook/Instagram/TikTok ads)

  • Programmatic platforms (Google Display Network, Taboola)

  • Native ad platforms (Outbrain, Revcontent)

  • Vertical media (industry portals, local news sites).

Media Buyers
In-house teams or agencies. Top buyers spend up to $500k daily.

Tracking Tools
Voluum, Binom, etc., analyze clickstreams, conversion paths, and profitability.

  1. ​Main Advertising Strategies
    PPC (Pay Per Click)
    Used for Google Search Ads. Keyword bids determine rankings; Quality Score optimization reduces CPC.

Native Ads
Blend with content recommendations (CTR: 0.5%-2%). Common in competitive niches like finance or weight loss.

Push Notifications
Deliver ads via subscribed users (open rates: 5%-15%). Platforms: PropellerAds, AdMaven.

Pop/Under Ads
Low-cost traffic (CPM 0.1–1), ideal for app installs despite poor user experience.

  1. ​Profit Formula
    Net Profit = (Conversions × Commission) − (Traffic + Tool Costs)
    Key Metrics

  • EPC: Total commission/clicks

  • CTR: Clicks/impressions

  • CR: Conversions/clicks

  • ROI: [(Profit − Cost)/Cost] × 100%

Break-Even Calculation
If commission is 20/conversionandCPCis0.5, CR must reach 2.5% to break even:
20×CR=0.5→CR=2.5%.

  1. ​Optimization Methods
    A/B Testing
    Test ad copies, landing pages, CTAs. Statistical significance requires ≥500 clicks per variant.

Audience Segmentation
Use Facebook Custom Audiences to target users by device (iOS/Android), region (Tier 1/Tier 3), or interests.

Black-Hat Warnings
Avoid cloaking (disguised pages) or cookie stuffing (forced tracking), which risk account bans.

III. Affiliate + Media Buy Synergy

  1. ​Traffic Loop
    Top players build closed-loop systems:
    Media Buy → Data Collection → Email/SMS Retargeting → Boost LTV.
    Example: Fitness course buyers later receive protein powder coupons.

  2. ​Tool Stack
    Analytics
    SimilarWeb (traffic analysis), SpyFu (ad spying), Anstrex (native ad library).
    Automation
    Jarvis (AI copywriting), Zapier (workflow integration).
    Websites
    WordPress (content sites), ClickFunnels (sales funnels).

  3. ​Risk Management
    Compliance
    Avoid false medical claims, financial fraud, or copyright violations.
    Payment Security
    Use Paxum, Payoneer for multi-account fund dispersion.
    Traffic Diversification
    Test 3–5 traffic sources to avoid dependency.

  4. ​Emerging Markets

  • Southeast Asia COD e-commerce: Lazada and Shopee affiliate programs.

  • India’s edtech: High-commission offers from Byju’s and Unacademy.

  • Latin America fintech: Nubank credit card promotions ($80+/signup).