The #1 Secret to Successfully Buying Internet-Traffic

If you want more traffic for your website, you essentially have two sources.

First, you can gain organic traffic.

Second, you buy traffic.

There's a dynamic with paid traffic that you absolutely need to know and understand.

Only then can you buy traffic now and in the future.

Otherwise, you're "out of the race" and can only watch from the sidelines.

What dynamic am I talking about?

What are its advantages for you?

How can you use it?

That's what we're going to discuss today.

Let's get started.

What is the Traffic Auction?

Paid internet traffic is generally offered in the form of an auction.

This isn't always entirely apparent, but it should be clear to you and me.

A good example is Google's "Ad Auction" for PPC search traffic.

Google has done us the favor of even calling it an "auction", making the situation completely clear.

What does the Google Ad Auction mean?

Simply put, it's an auction that determines the ranking of your ad in comparison to competitor ads.

This has two critical implications for you and me.

First, the auction's outcome determines WHETHER your or my ad is displayed at all.

Second, how prominently our ad is displayed.

In other words, our performance in the "Ad Auction" determines WHETHER we get any traffic and if so, how good it is and how much we get.

With Google and most other advertising networks, it's not a pure price auction.

It's more a combination of price and quality.

This ensures that Google (and the other networks) prevent users from having a bad experience due to spam.

Thus, they continue to use Google, and Google continues to make money from them.

So far, so simple.

Why does the Traffic Auction exist?

The answer is straightforward, and you can probably guess it yourself.

By offering its valuable inventory in an auction, Google maximizes its profits.

Facebook, Instagram, Twitter, Reddit, and all other advertising providers do the same.

You and I would do the same if we had a nice, small (or large) advertising network.

Why is the Traffic Auction important to me?

The auction becomes important for you and me when we want to buy paid traffic on the internet.

Then we have to participate in this auction.

The prerequisite for successfully participating?

We must recognize the auction and UNDERSTAND it.

Recognition is not as trivial as it may seem.

Surprisingly, many advertisers see that purchased Google traffic is expensive.

But they have never really seen and understood the auction concept behind it.

But that's crucial.

Because it's a prerequisite to participate.

The unpleasant truth about paid internet traffic?

The auction concept is the reason for a seemingly unpleasant truth:

Paid internet traffic is traded at maximum prices!

And it gets even worse: The wheel turns upwards, if at all.

Why?

Because advertisers are working all day to optimize further.

This drives the prices even higher.

What options do you and I have?

We have two options.

We can exit and look for alternative traffic sources, or we can participate.

Exiting isn't really helpful.

Because even the "side roads" are subject to constant competition.

That means that acquiring traffic there is also getting more challenging.

Or, we LEARN what it takes to buy traffic at maximum prices!

By far, this is the better option.

Because it allows us to draw from all forms of traffic.

But HOW do I do that?

How do I succeed in the Traffic Auction?

The answer is frighteningly simple.

If my Lifetime Customer Value (LTV) is higher than my Customer Acquisition Cost (CAC), I can buy internet traffic.

LTV > CAC

That's all there is to it!

And the strategy derived from it is just as simple.

Increase the Lifeline Value.

Reduce the Customer Acquisition Cost.

EVERY advertiser, who successfully buys internet traffic long-term, masters these two levers.

He (or she) raises the LTV and lowers the CAC.

That's the whole strategy.

Everything we need to succeed.

BUT HOW do I do that EXACTLY?

Of course, the next question is, "YES, HOW EXACTLY do I do that?

"HOW do I raise the LTV?

HOW do I shrink the CAC to dwarf size?

But with these questions, we are already one step further.

I'll answer them in future articles.

The key point of this article is different.

My sole intention is for you to realize that every purchased internet traffic is subject to an auction.

You have to decide whether you face it or retreat.

If you want to face it, you have to raise your LTV and lower your CAC.

This gives us a wonderful North Star to guide us.

We can wake up every morning and ask ourselves:

How can I further raise the LTV today?

How can I make the CAC even smaller?

That's all there is to it!

But I admit, implementing this leaves enough work in the Internet Traffic Quarry for us.

Happy stone-chipping!

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