The 80/20 rule, known as the Pareto principle, is a marketing strategy that says 80% of results are a product of 20% of actions. We can apply this to optimize Paid Media.

1. Digital Media Buy Optimization Steps
How do we optimize for conversion or user engagements?
Optimize for Registry CPA (cost per
acquisition) and by ad placement type
in defined time cycles after a pre-
defined benchmark period.
Optimize Ad Placements
Continually produce new creative
(visuals) and swap out Ads with
diminishing returns after a defined
benchmark period.
Refresh Creative Often
Place a greater media buy
optimization emphasis on retargeting
non-converting site visitors.
Retarget Site Visitors
Blacklist websites under performing
each month using an 80/20 process
elimination rule.
(20% representing the least desirable sites)
Leverage Blacklisting
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Core
Optimization
Steps
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2. 80/20 Rule Optimization Steps
How do we apply whitelisting & blacklisting to website optimization?
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Sort and rank all source
domains by the amount of
campaign spending.
Separate the top domains
that represent 80% of your
spending. This will be a
surprisingly short list.
Re-sort these source domains
based on the desired campaign
KPI, such as CPA - and then
blacklist the bottom 20% from
the ad campaign.
Repeat this process
monthly.
Keep the other domains that only got
20% of the ad spend (this will be really
long list).
Many will get additional spending since
we just removed several domains that
were under performing and received a
significant amount of spending.
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