Why capping strategy is so popular among advertisers? The reason for that hides in the unlimited traffic of the campaign, what leads to the unlimited number of leads. Nevertheless, not all advertisers focus on the same strategy, some of them prefer to restrict the number of dialogues in the campaign. There can be several reasons for that:
#1 Maintain the number of leads
Advertisers apply this method in order to identify how many leads their system can register. The low budget and the lack of time do not allow to test the waters.
#2 Maintain the budget
In fact, financial restrictions are not applicable purely to market newbies. Advertising companies have their costs and revenues, and pay a commission to affiliate networks. The revenues consist mainly of subscriptions made by users. However, it may take much time till the payment will proceed from user to carrier and from carrier to advertiser. Thus, daily or monthly lead capping may be the best solution in this case.
#3 Control the spending process
Capping is often used to monitor whether the spending on the campaign does not overcome the allowed limit. Otherwise, the negative ROI can be guaranteed. Consequently, you may not be able to gain more users on the top favorite offer.
#4 Proceed with the traffic testing of affiliates
Advertisers are highly recommended to test the traffic quality of some affiliates before the official launch. The test advertising can be performed with the reduced number of affiliates, while the question of its availability can be discussed later.
Before the promotion…
It’s always better to contact your Account Manager who can provide you with all the necessary information before the official launch.