In many markets the churn rate (The annual percentage rate at which customers stop subscribing to a service) has become an important variable to be a key player in the market.
An increasingly common practice for Mobile carriers has become to give specific limited churn rates to all advertisers. In simple words, the amount of users that unsubscribe to a service on the same day should not cross X percentage. These restrictions have been implemented mainly due to fraudulent activities within the market, for example, service that generate “subscriptions” without being initiated by the user.
This means that the quality of the users from the traffic source is even more important now, affiliates and advertisers are proactively looking for traffic that has a controlled churn, this means that the “same day deactivations” should be less than X %. To avoid any issues with carriers.
These practices are becoming more prominent and in particular, at Kimia, we are experiencing it’s effects in India and MENA regions. There are several traffic sources with fraudulent activity that make the market unstable, generating tension in long term relationships with carriers. This has lead to carriers putting OTP (a “one-time password” is a password that is valid for only one login session or transaction, on a any device.), Captcha flow (captcha is a type of challenge-response test used to determine whether or not the user is human.)… etc., in turn, this clearly lowers the conversion rate and in conclusion the overall revenue generated. To avoid the markets becoming more restricted for everyone, due to a small % of fraudulent sources, affiliates and advertisers alike are looking for the best and most secure sources, that bring “genuine” signups.
Kimia has implemented a long list of technical implementations and best practices to combat these issues and continue to mainly growth in highly sensitive regions. These practices include our deactivation pixel which allows us to identify traffic sources that generate high churn rates and blacklist skeptical traffic sources. Additionally, there is programmatic analysis of click ids to identify IP identification of proxies as well as signs of misconduct including time frame gaps between click and subscription, multiple devices from the same user and other tricks.
Of course, one of the most important key elements is having a direct dialogue with our advertisers and sharing information so that we work together to maintain and grow our common business. Practices of sharing whitelists (proven quality traffic sources) and providing pre-lander pages has also contributed to cleaning of the markets.
As always, Kimia wishes to create long term relationship with local players and our affiliates, the end goal is to working in stable markets and grow together with quality products and traffic. Therefore we will continue to investigate and create work methods and technology that can help us in this regard.