The number one issue based on feedback from more than 100+ active publisher ads is about cashflow, because almost 90% of the publisher use Affiliate Marketing as their main source income. That’s why some of new or unstable publishers have some disruption when they’re try to run for the 1st-2nd month because their budget ads is still on pending waiting for Advertiser to validate and they runout of budget.
From there Ecomobi team have an idea to set advance payment to support the publisher ads, but how much we can give them without risking disrupting our cashflow and the risk of not getting paid from Advertiser?
Based on the calculation risk from Finance team, they already have the set of measures point in terms of how much percentage the advance payment for publisher is safe. The range is between 30 – 70% based on EAC from previous validation.
So how the advance payment is really help publisher to keep pushing the revenue? Here is some data that we collect based on feedback and revenue loading.
From whole publisher ads that received advance payment 67% of it is on the potential and top publisher which contribute the most on our loading KPI.
The most impactful publisher that needed this support is mostly from potential and top publisher which keep the retention rate around 92% when they keep receiving advance payment because they already have targeted monthly budget without disrupting their cashflow. Based on average at least publisher with minimum revenue of $1500 per month will have the most benefit from this support because the average cost of monthly ads operation is start from $600-$700 for potential publisher.
Meanwhile on the low performance publisher this support will only need help them a little because mostly their advance can’t cover the full operation of ads for whole month + 2 weeks payment which can only stable the traffic for 2-3 weeks top, and they only contribute for around 3.4% of the loading KPI.
The top performers pubads who keep receiving advance payment is now covered more than 90% of loading KPI and without it the prediction is only 41% which almost half of the KPI loading.
And also with advance payment support Publisher ads able to adjust and optimize during peakday sales like double date and payday week which help to stabilize and increase some publisher revenue for average around 10-15%.
So that’s why an calculated risk which can help to benefit both our publisher and also our target revenue loading.
