Why Pay More: Does Premium Really Equal Quality?
What’s Happening in In-App Advertising?
Throughout 2024, a dominant narrative has emerged in the in-app advertising world: the belief that high-quality traffic can only come from premium sources. Platforms like AppLovin, IronSource, and other big-name DSPs are heralded as the holy grail of quality traffic. While it’s tempting to accept this as fact, we’re here to challenge that perception.
The reality is far more nuanced, and here’s the truth behind the "premium-only" claim:
1. Advertiser Bias: Many advertisers shy away from traffic sources without the "premium" label, outright rejecting entire categories of sources.
2. KPI Frustrations: Advertisers are surprised when premium traffic doesn’t meet their KPIs, often leading to disappointment and skepticism.
3. Rigid Expectations: Unwillingness to adjust KPIs or expectations for premium sources sometimes results in new fraud schemes as agencies scramble to deliver promised results.
4. Agency Limitations: Agencies often struggle to offer new solutions due to client pushback:
○ “We’re already using these sources in-house or through another agency.”
○ “Unknown sources? Probably fraud. Let’s stick to the usual.”
The result is a standoff: advertisers are hesitant to experiment, and agencies feel constrained by client demands. So, how do we move forward? How can we create a win-win scenario for advertisers and agencies alike?
A Revolutionary Perspective
Zorka.Agency explored these challenges in its latest White Paper, not to criticize but to foster a constructive dialogue. The goal is simple: make in-app traffic acquisition more effective for everyone.
Here’s what was discovered:
Debunking the Premium Myth: A Case Study
Imagine two ad campaigns with nearly identical performance metrics. One is from a premium source; the other is from a lesser-known "classic" source. Can you guess which is which? If you guessed the premium source would outperform, think again.
In fact, our analysis showed no significant difference in quality between the two. This isn’t an isolated case – it happens frequently. Premium doesn’t always mean better.
The Role of Trackers and Anti-Fraud Systems
While trackers and anti-fraud systems play a vital role, they’re not immune to market dynamics. The lack of standardized algorithms for handling traffic often leads to:
- Unclear pricing
- Misplaced distrust in traffic quality
- Over-identification of fraud where none exists
This competitive environment can distort the narrative, making it harder to differentiate between legitimate and fraudulent sources.
A Simple Formula for Success
The key to effective in-app advertising lies in diversity. Mixing traffic from various sources, backed by robust analytics, is the way to achieve both quality and volume. Here’s why:
Benefits of a Mixed Approach
- Budget Savings: Premium and classic sources often share sub-sources. With premium platforms, you’re paying more for the brand, not necessarily better results.
- Campaign Scaling: Relying solely on premium traffic limits your capacity. While you might hit your KPIs, you risk losing market share due to heightened competition within premium sources.
Risks? None – If Done Right
With proper analytics, CRM checks, a skilled BI team, and timely optimizations, you can minimize waste and maximize returns.
Recommendations When selecting traffic sources, rely on:
- Your own experience
- Your established blacklist
- Industry recommendations Avoid basing decisions on brand recognition or hearsay.
Key Takeaways from Years of Experience
- KPIs Aren’t Guaranteed by Premium Labels: Success comes from proper campaign setup, not just sourcing premium traffic.
- Beware of Fake DSPs: Many DSPs market themselves as premium but include questionable SSPs and shady practices like PID swapping.
- Premium Quality in Classic Sources: High-quality traffic can often be sourced from less popular channels.
