Yeah, you got the basic idea right. It mainly works by showing different content depending on who's visiting the page. To understand it better, you'll need to do some testing yourself. There are many tool in market like TrafficShield, JCI and TrafficGuardian. The setup can vary, so it takes some...
Personally, I validate the landing page before scaling traffic. Even a good offer won't help much if the page isn't convincing. Start small, check where people drop off and fix that before increasing spend.
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