What Is A Traffic Trader?
Finance meets advertising…
We often refer to the “position” that I and others in our company have as “Traffic Traders.” In fact, almost 3 years ago when I first really dove into things and started learning and helping out at EyeBall Division, that was the job title we created for me. It seems interesting at first glance, but with a closer look at our systems and processes it all makes sense.
This is the part most closely related to advertising. In today’s world we specify in digital media, typically ads that you can buy from a variety of sources like Google, Facebook, Yahoo, Display Networks, 2nd Tier Search Partners, and many others.
Traffic is the term we use to denote buying opportunities to be in front of our potential customers. The original AI of outsourcing to machines a selling process. Understanding what and how traffic works is key to being an effective traffic trader.
I’d be surprised if you talked to almost any business owner and they didn’t emphatically say YES when you ask, “could you use more traffic to your site to increase direct to consumer sales?” Everyone is looking for more traffic, and they want to grow their businesses effectively and profitably, however, it’s a tricky landscape to navigate and many dead bodies lie in the field of desired business growth.
On to the second portion of the “title.”
In the finance world, we often refer to stock brokers as “traders.” The ones running around submitting buy and sell orders on the floor to make investments that make companies millions and grow their financial assets. It’s a highly efficient and sophisticated market, where technology allows anyone to buy or sell stock in an instance.
In fact, when you go high enough up the ranks, to the most profitable segments of financial companies you arrive at these High Frequency Traders who debate in meetings about how tall to build their radio towers so they can can 1/1000 of a second increase on their competitors in submitting trades. Their whole goal is, for instance, to buy 1 Billion shares at $1.57 at one instance and then nearly instantaneously in another instance sell for $1.58. Only seeking tiny gains, but with such large volume, that yields huge profits.
These highly efficient high frequency traders build programmatic models that analyze data faster than we can possibly think and execute buying and selling thousands of times a day while the market is open.
When it’s not a HFT, every stock broker out there is using computer models and looking at moving averages and derivatives of growth prediction models to determine which stocks, indexes, mutual funds, bonds and every other available financial asset they should purchase.
Traffic + Trader?
What most don’t realize right off the bat is just how similar Digital Advertising and Financial Trading really are, in fact we spent a whole week talking about this very concept with two Quants from New York who had worked with companies like Bloomberg for their mortgage analysis and other financial giants in high frequency trading.
Nearly all ads purchased today are bought in a market on auction. So you bid for a placement and if you are the highest bidder for your ad to that demographic, when the impression is available you win that position and your ad is shown to a potential customer.
All of these marketplaces have their nuances and little differences. You can find different demographics across different traffic sources, because people hang out in different places online.
So, just like a trader in the financial world, there is this auction based marketplace where you buy and sell and bid to win. The only difference is it is an ad, not a stock or other financial asset.
Now we have a marketplace that requires stock trader like abilities to understand how the system works, where to buy what, and which source and type of traffic will best yield the results you are seeking for a particular business. That is only half of the equation, because even if you understand the trader portion of buying ads really well, but you show a crappy ad to your user, you aren’t going to generate any sales.
Without the right direct response marketing ability and creative creation capacity to produce an ad that will speak to your desired customer you won’t succeed. There are literally 1000 things that have to go right for you to have an effective marketing campaign online.
What you really need is a cyborg…
Cyborg = Smart Human + Intelligent Machines
A traffic trader is really a smart human, one who understands effective creative for marketing and strategy. When they are paired with an intelligent machine that aggregates data and performs millions of calculations in their behalf you have an unstoppable assets that can think, invent, create, execute and optimize any marketing effort, and you start growing, and end up yielding huge returns and pushing forward your cause as a business.
Our company houses both the intelligent machines (Cerebro) that run algorithms, data aggregation, forecasting and predictions. AND Traffic Traders, one who understands the digital marketing landscape from a strategy perspective, but also knows how where to buy traffic, how to scale it and when to launch new things. The traffic trader starts, stops, turns up or down campaigns all based on profit so each campaign they work on yields the highest return possible.
If you want to become a Traffic Trader, shoot me a message…
If you want to see what kind of results we have produced for businesses check this out… Click Here To See How We 68x’d This Business’s Net Profit