Once you have started working in affiliate (CPA) marketing, several factors will be the determinants of your success. One of the very crucial ones is choosing the right vertical where you as a webmaster can start your marketing activity.
To start with, the vertical is the niche that combines the groups of offers, united by a common principle. Knowing the principals of the chosen vertical enables you to research the demographics of your target audience. Thus, you can understand who is more interested in buying what you offer.
What is a “vertical” in a nutshell?
The “vertical” represents a well-defined digital market of goods and services that target the specific needs of the audience based on their demographic data, profession, interests, wants and needs.
To illustrate, a website that contains general information about smartphones is quite broad. However, narrowing it down to a specific model of an iPhone with its particular configuration, we can attract a homogeneous audience with an interest in this specific subject. Thus, we start building all the marketing activities around our subject, and this is what a vertical is in a nutshell.
The most advanced way to succeed in CPA marketing is to work simultaneously in several verticals, approaching every one of them individually to generate a higher conversion.
Which are the trending verticals of today?
This is one of the most trending verticals of today. Surfing the internet, you might have seen pop-ups of a promoted service or product. Those are the attributes of the CPS (cost per sale) model. These days people do a lot of online shopping which makes it a very promising and fruitful vertical to deal with. Judging by the product, you can learn about the target audience and come up with your best marketing tools. This vertical is almost limitless as it includes various products from accessories and clothes to gadgets and technology.
This is one of the biggest and flourishing niches in CPA marketing. This vertical covers health, sports, and beauty. It is targeting a very broad audience which means there is space for traffic and conversion. Nutra combines various health products. The top categories are skincare goods, weight loss and muscle building products, brain activity stimulators, etc.
It is suitable for beginners in CPA marketing. However, they should avoid GEOs such as the UK and the USA, since there is a severe competition. At the same time, the countries of Latin America or Africa drive the promotion of this kind of goods making possibilities in this vertical pretty much endless.
Nutra offers work best with social networks (especially Facebook and Instagram) and Google AdWords. At the same time, the landing pages and creatives here tend to be quite “aggressive” in this field sometimes with the participation of celebrities (which certainly isn’t suitable for all traffic sources).
The most common business models for Nutra are listed below.
– Direct sales. After the user visits a landing page and makes a purchase, the webmaster immediately receives a commission. Today they consider it to be an ineffective model due to the high percentage of failures. It is still hard to persuade a person to leave the credit card information on the site.
– COD (cash on delivery). This model, on the contrary, is gaining popularity today, since the client does not risk anything. The user simply leaves his contact details, then the call center contacts him. If the order is confirmed, then the customer pays upon the delivery. Choosing this way of working you need to make sure of the offer’s and product’s quality to ensure a greater conversion.
Another interesting vertical is traveling. This vertical has to deal with the hotel or apartment bookings, flight tickets, travel deals, travel agencies’ promotions, etc. Here you need to keep in mind that success depends fully on the seasonality.
This vertical works with CPI (cost per install), CPS and CPL. CPI, for instance, is relevant if you need to bring the user to install the travel app.
Cryptocurrency and gambling
These are the other two lucrative areas.
The cryptocurrency area is still popular. More and more webmasters are promoting these offers with fewer leads. They focus on those with better quality in contrast to some other verticals where there is a large number of lower quality leads.
Gambling and betting areas tend to offer high payouts. At the same time, here you will face serious competition. Since testing these offers may require big investments, this vertical might not be suitable for all webmasters.
This is a growing vertical which represents the information given in exchange for the opportunity to win a prize. This is a vertical where the CPL is used. To participate the users usually just need to fill in their contacts (most often email and name). As soon as the user leaves this information, the webmaster receives a commission. The result is a win for every party. The user gets a chance to win a valuable prize without paying for it, the advertiser receives the emails, so that he can send the newsletters, and the webmasters receive money for each user who has filled out a form.
The attractive side of sweepstakes is that this vertical is suitable for both experienced webmasters and beginners. This leads to their widespread popularity and thereby increasing competition.
Online dating and adult
Another very promising vertical is online dating which is growing rapidly. In turn, it can be divided into two subcategories: mainstream (dating for people who are looking for friendly/serious romantic relationships) and adult (these are offers that have more of a one-night-stand character.).
Mainstream is becoming bigger because people don’t have enough time for personal life and that is the field to monetize.
The offers of this vertical work with several models.
– CPL (payout for lead): the user enters his email address — you get a conversion (also called SOI, or Single Opt-In model). This is the simplest model, so it is perfect for beginners in affiliate marketing. However, the payments here are not very high.
– A variation of CPL is the DOI (Double Opt-In) model. In addition to email, the user must perform another action and only after that you get a commission. The “second action” may be to follow the link that came in the e-mail, create a profile, upload a photo, open the application (if it’s a mobile offer), send a message, etc. Thus, payouts in DOI are higher than in the SOI model.
– RevShare (payout of a percentage of profit). In this case, you get a certain percentage of each user who has become a paid member of a dating site/application. Here it doesn’t matter how many people left their email, but how many leads eventually became paid members of the “club”. You get a percentage of a monthly subscription fee (as a rule, it can be from 40% to 80%). This is a complex model, so beginners rarely take it.
– CPS (payment for the sale). As with the previous model, you get a conversion for each paid user. The difference is that you are not getting a percentage, but a fixed amount.
Online dating is a very “visual” vertical. It’s worth focusing on creatives as much as possible. It is also worth considering that the main audience is men. The quality of leads is more important here than the number of leads.
In its turn, adult vertical represents a smaller niche with all the content that targets primarily the audience in search of romantic experiences. Mostly CPA and CPL models are used in this vertical. Adult content, as a rule, implies photos/videos for adults, which the user can watch/download on paid sites or free sites with a paid subscription. The webmaster here receives either a percentage of each paid lead (about 50% of the monthly subscription) or a fixed amount.
Another major vertical, among those with highly specialized content. This vertical includes content on insurance, lending, stocks, and options, etc.
The offers of this vertical tend to work with the CPL model since the sales funnel here is complicated and each client requires an individual approach. A filled-up form, a phone number or e-mail address typically convert into commission. Usually, payouts for CPL models are low, but not with this vertical. Here the payout for a quality lead is high.
This vertical unites all offers involving the user downloading the application. Each install brings a commission. The most common applications and therefore the most popular offers are game applications, utilities, anti-viruses, etc. As a rule, these types of applications are free, so they are easy to convert into payouts.
It would seem a gold mine for many webmasters, however, the popularity of this vertical has fallen significantly compared to previous years. This is due to market over-saturation, increased cost of traffic and reduced payments, which leads to difficulties in making a profit here. To deal with this you need to focus on GEO, picking countries where mobile traffic is now actively developing, and the audience’s involvement in mobile applications is growing (for example, Latin America, Africa).
Pin submit offers
The pin submit offers are also mobile offers, which in turn are now actively replacing mobile installs.
Examples of the offers of this vertical are the offers to download a song, application, photo/video, etc., where the download fee is charged directly by the mobile operator. Naturally, before this happens, the user must agree that they withdraw money from him.
A lot of webmasters have a preference for this vertical. Among other things because a good and reliable source of traffic for offers of this vertical are social networks, especially Facebook.
The competition in this vertical is very high, so your success will depend entirely on your creatives and on how well you understand the trends of the market and the audience of every game individually.
It is very important to start working in the right vertical since it largely determines the success in CPA marketing. Start working with the vertical of your choice consistently by finding the one that will work best for you. Use the sources you are confident to work with and start bringing organic traffic. Once you get comfortable with one vertical, freely choose the next one to work with.