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Old 04-13-2012, 09:24 AM  
signupdamnit
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Quote:
Originally Posted by TheSquealer View Post
This whole conversation about tube traffic not converting is comical. Does TGP traffic convert? If you would have asked that question 8 years ago... the answers would have ranged from "i'm doing 1:50" to "fuck no! i'm at 1:40,000 and tgps suck ass".

You have an interested prospect in your product. Porn was always free. Porn has always been free. Users have always found paysites via free content. Whether or not he actually buys depends on a multitude of factors - and while others are killing it with tubes, there are also those insisting its a waste or time or "much much worse than... " - page structure, eye flow, a simple headline, call to action text, layout, image choice etc etc etc etc etc etc etc all come together to determine whether you are the 1:100 guy or the 1:100,000 guy. The funny thing is that so few in this biz stop to ask "how do i improve this" -- "how do i test" and so on and so forth... instead, everyone blames the traffic and continues doing poorly and never really learn a thing and end up doing nothing but bitching, complaining and blaming.
It's not just that it doesn't convert but also that it has a horrible ctr (often you get one small text link and whatever watermark you have which only makes this worse). The ctr is the real killer and it only compounds with the usual poor conversion rate. Thus the 1,000,000 video impressions to make one to three sales.

So in a month maybe a tube like Youporn will give you 1- 3 sales and 1,000,000 impressions. But now what is the opportunity cost of those 1,000,000 impressions where you gave out a full scene? What negative effect will it have on other marketing campaigns?

If you were previously doing 50 affiliate sales a day from your affiliate program with say 100 direct sales a day and you start blanketing these tubes with full scenes making for say 50,000,000 video impressions per month at a .75% ctr and a conversion rate 1:3,000 then:

50,000,000 * .0075 = 375 000 raw hits to your site per month from tubes
375,000 / 3000 = 125 sales from tubes in one month.
= 4.1 sales a day from the tubes

At first let's say the effect on your affiliate and direct sales is negligible. Let's just say for every month you do this affiliate and direct sales will decrease by 4% (compounding).

Month 0:

Tube sales - 0
Affiliate sales - 1500
Direct sales - 3000

Total sales - 4500

Month 1:

Tube sales - 125
Affiliate sales - 1440
Direct sales - 2880

Total sales - 4445

Month 2:

Tube sales - 125
Affiliate sales - 1382
Direct sales - 2765

Total Sales - 4272


Month 3:

Tube sales - 125
Affiliate sales - 1327
Direct sales - 2654

Total Sales - 4106

....And look at that. You're actually LOSING sales by giving out all that content. Sure you're gaining some tube sales but it's having a negative effect on your Direct and Affiliate sales. Even taking into account the affiliate's cut you are still losing. This is because there is an opportunity cost involved in giving out all that content freely. Namely in our example for every month you give out all that content for free (and it builds more and more) your Direct and Affiliate sales decrease 4%.

You can play around with the numbers and say make it a 1% decrease and a Tube ctr of 1% with a conversion rate of 1:2,000 and the same thing would happen and you will lose money. Mathematically this will always be true as long as the tube $/impression is less than what your direct and affiliate sales are bringing in and as long as the tube campaign has a negative impact (which is almost guaranteed if you are giving out full scenes or nearly so). These numbers also do not take into account that as you give out more content on the tube those ctr and conversion rates should aslo get worse. To do it properly you should also degrade both of those numbers too by a certain percentage. Say 3%. IOW, you'll see diminishing returns from the tube campaign as well.

There's even a big difference between a tube such as Pornhub and a legal tube an affiliate might have. With your average so-called legal tube the affiliate usually pushes your site fairly hard with a couple banners and links leading to your site in addition to any watermarks. Naturally that means a much higher ctr than on a tube where you only get a small text link and your watermark.
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