+Test task Advertiser Account Manager

1. Please define terms: affiliate / advertiser / CPA network / ad network / offer.

How can they cooperate? Name some of the big CPA networks that operate
worldwide.
a) Affiliate is an internet marketing tool. Typically used for business
development, the affiliate receives a reward for every visitor, subscriber, buyer
and / or sale.
b) Advertiser is a legal entity that has an offer to promote goods or services
(offers) under a partnership agreement, and is willing to pay remuneration to
publishers for certain actions
c) CPA-network is advertising intermediary system that offer advertisers to pay
only for targeted user actions - purchases, registrations, filling out questionnaires,
and so on. CPA is an abbreviation for Cost Per Action.
d) Ad network is an advertising network that unites various Internet resources for
the purpose of displaying advertising information on them.
e) Offer is a free product or service of value you give in exchange for people
completing a call to action. An offer can be an ebook, coupon, trial period, guide,
app or any other vehicle that provides information, service, or product at no cost
to your potential leads.
f) All of these things are internet marketing. These tools and components are part
of the same process - advertising. Each component interacts with another.
2. What traffic sources can you name?
Google adwords, Yandex direct, Facebook (and Instagram), vkontakte, mytarget,
youtube.
3. Please provide examples of several online ads, including one incentivized

promo.
4. Why do you think affiliates and advertisers use services of CPA networks?
Provide arguments for both parties.
Affiliate marketing is a beneficial method for any business that wants to grow. It’s
sales without spending on a traditional advertising budget. To focus your digital
ad spend on "awareness metrics" like impressions and clicks, you could only
spend your money on real business results — leads, conversions, and sales. It
means better to use CPA-networks. This is very beneficial for both parties. It is
beneficial for an advertiser because he pays for a certain result, and a good result
for an affiliate serves as a good advertisement and feedbacks.
5. Please name current top 2 google play gaming apps. What ways of
monetization are used for those?
Mobile Game Monetization is basically the process of making money out of your
mobile games. Years ago, the idea of mobile game monetization was limited to
either a free app with ads or a paid app. However, the market has changed
drastically since then and new worlds have opened up.
Escape room – 1st screen - in-game purchases, 2nd screen - incentivized promo, 3rd
screen - Direct Ads

Candy challenge 3d –1st screenshot - Direct Ads, 2nd screenshot - Banner Ads
6. What ways of online product monetization can you name?
1) Freemium - selling advanced functionality
FREE- free, preMIUM- premium
In this model, the conversion is 0-3%, so it will be effective only with a large
number of users.
2) Paid - paid application (or smth)
Regular paid application. The most reliable way to make money, but only if you
are sure that your product really solves some problem. Well, or you can set a
minimum price tag, as in the example with water, in order to beat off at least
coffee.
3) Trial - a paid app (or another product) with a trial period
4) Paid subscription
5) Donate
6) Banner ads
7) contextual advertising
7. Please define the following payment models: CPM, CPC, CPA, CPS, revenue
share and choose the most profitable one(s) for affiliates and advertisers.
Cost per thousand (CPM), also called cost per mille, is a marketing term used to
denote the price of 1,000 advertisement impressions on one web page. If a
website publisher charges $2.00 CPM, that means an advertiser must pay $2.00
for every 1,000 impressions of its ad.
CPC is a pricing model that charges the advertiser every time a user clicks on the
ad. ... Also referred to as pay-per-click (PPC), it is a performance-based metric. In
the CPC model, the payment is not merely based on the exposure of the ad, but
on the user interaction with that ad.
A continuous payment authority (CPA) is a type of regular automatic payment
where an individual gives a vendor permission to take money from a credit or
debit account whenever the vendor feels money is owed. They are often used by
payday lenders, porn websites and subscription sites such as those for magazines.
CPS, commonly referred to as the Visa CPS program, stands for Customer
Payment Service. CPS provides retail businesses with a certain set of rules or
“qualifications” to follow when making a transaction and sets the charges based
on those rules. You do not have to follow these rules, but you will likely end up
paying more in charges and interchange rates if you do not.
Revenue share. In such a model, both participants share not only the profit, but
also the risks - this obliges everyone to take a responsible approach to solving
problems and really apply their expertise, and not to fulfill the requirements
according to the "customer-performer" model.
CPA-model is considered to be one of the most profitable and effective
payout models. Everyone benefits from it: clients pay only for a specific
result, affiliates can get unlimited income and stay independent. If you are
new to affiliate marketing CPA may be your best call.

8. Please define the following metrics - CTR, CR, EPC, ROI. How to calculate these?
CTR is a ratio that indicates how often users click on your ad or free product
listing after viewing. The CTR is a measure of how effective your keywords, ads,
and free product information are.
CTR is calculated as the number of ad clicks divided by the number of
impressions: clicks ÷ impressions = CTR. For example, with 5 clicks and 100
impressions, the CTR is 5%.
CR - conversion rate. Conversion in Internet marketing is the quantitative ratio of
resource users who performed the targeted action to the total number of visitors.
The target action can be ordering a service, buying a product, registering,
callback, and more. The person who achieved the goal on the site is called "Lead"
in marketing.
Earnings per click (EPC) is a special metric in affiliate marketing that
shows the average amount of revenue you earn each time someone clicks
on your affiliate links.
Return on investment (ROI) is a performance measure used to evaluate the
efficiency or profitability of an investment or compare the efficiency of a number
of different investments. ROI tries to directly measure the amount of return on a
particular investment, relative to the investment’s cost.
To calculate ROI, the benefit (or return) of an investment is divided by the cost of
the investment. The result is expressed as a percentage or a ratio.
Task 1. We have 2 online advertising campaigns for merchandise A and
merchandise B.
Campaign for merchandise A:
clicks – 150,
costs for advertising - $100, orders received - 50,
revenue received from these orders - $150

Roi = (150-100)/100*100%=50%
CPC= 100/150=0.666

Campaign for merchandise B:

clicks – 160,
costs for advertising - $170, orders received - 40,
revenue received from these orders - $280

ROI=(280-170)/170*100%=64.7%
CPC=170/160=1.0625

Please explain how you will analyze which campaign is more successful.

Campaign for Merchandise B is more successful than for A, because ROI

of this merchandise is bigger. It has a higher CPC however bigger profit.

Task 2. We have 2 online advertising campaigns for merchandise A and

merchandise B

Campaign A
Daily impressions 3 300 000
Clicks 13 500
Campaign spend $590
Conversions 200
Campaign revenues $765

EPC = 765/13500=0.0566
CPC = 590/13500=0.0437
CR = 200/13500*100=1.48%
ROI = 765-590/590*100%=29.66%

Campaign B
Daily impressions 5 400 000
Clicks 21 600
Campaign’s spend $1 050
 Conversions 350
Campaign revenues $1 250
EPC = 1250/21600=0.0578
CPC = 0.0486
CR = 350/21600*100%=1.62%
ROI = 1250-1050/1050*100%= 19.04%

Calculate EPC, CPC and CR of each campaign.

Which campaign is more effective for the investor?

Campaign A is more effective for the investor because of the higher ROI.

10. Imagine you need to get in touch with a new partner. What will be
your steps to close the
deal? Please draft an introductory email.

Writing from Kilian Mbappe

Hi, Lionel Messi!

In the past year, we’ve worked with your friend and college Kilian Mbappe to help
him to increase sales of his brand “Kilian” and were thinking we might be able to
help your brand “Messi” as well.
I would love to schedule a brief 10-minute call to learn more about how we can
meet your needs. I’m free in the next 3 days. Which day is best for you?
If this isn’t something that you are currently addressing, or you don’t believe we
are a fit right now, I understand. I appreciate you taking the time to read my
message.

Regards,
Zakhar Pylypenko
Advertiser account manager of the “iMonetizeIt”

11. Which offer would be a better choice for an affiliate and why?
Payout CR,%
Offer SOI $2,85 8,95
Offer DOI $4,25 5,83
Offer CPS $75 0,3

1000=100%
Offer soi = 89.5*2.85=$255.07 this offer is the best option
Offer doi = 58.3*4.25=$247.775
Offer cps = 3*75=$225

12. We pay an affiliate on a weekly basis.

a. For the 9th week he earned $1 568.55
b. For the 10th week he earned $1 008.10
c. For the 11th week he earned $2 050.50

4627.15 $=100%
78 actions = 100%
$46.2715 is 1 %
9th week = 33.898%
10th week = 21.786%
11th week = 44.314%
1% of actions = 0.78

Lets calculate how much we should substract from each period:

9th week = 0.78*33.898= 26.44*1.2= $31.72
10th week = 0.78*21.786=16.99*1.2=$20.98
11th week = 0.78*44.314=34.56*1.2=$41.47

Lets substract:
9th week = $1568.55-$31.72=$1536.83
10th week = $1008.10-$20.98=$987.12
11th week = $2050.50-$41.47=$2009.03
When comparing stats with advertisers, they ask us to invalidate 78 actions
with the payout of $1.2 from his earnings for the period of Mar 1st - 15th.
Please subtract proportionally from each period.