The Importance Of Tracking Metrics In Affiliate Marketing

In affiliate marketing, tracking metrics are very important. All that data that is generated, all those statistics, are of great importance to both advertisers/merchants and publishers/affiliates. You hear of impressions, click-through rates, traffic, conversions, and you wonder why any of that should be important to affiliate marketing. Well, using marketing strategies in your affiliate marketing business without monitoring your efforts and measuring the outcomes won’t really help you in growing your business. You wouldn’t know what you are doing wrong or right, as an affiliate. You won’t know who has the most conversions in your network, as an affiliate manager. So, here is why tracking metrics are important in affiliate marketing.

There are several tracking metrics used in affiliate marketing, all of them with different purposes.

Tracking Metrics

Active Affiliate Ratio

This tracking metric is used by affiliate managers. It shows them the number of affiliates or publishers within their network that are truly active on a frequent basis, and also perform well. Active Affiliate Ratio is important in affiliate marketing because it helps the affiliate managers know exactly which publishers are very active, active on an average level, or the least active. It helps them identify where the most impressions are coming from, and who has the highest and lowest conversion rates.

Affiliate Commission Ratio

This tracking metric is important to affiliates or publishers. It shows them the amount of money an affiliate receives for generating a sale or a lead. Affiliate Commission Ratio is important in affiliate marketing because, with it, affiliates can check and find out which advertisers or merchants they can work with, those that pay higher commissions per conversion. However, affiliates also need to factor in how attractive that advertiser’s product is to customers. If customers don’t particularly like that product, that high commission won’t be easy to attain. More often than not, the advertisers offer such high commissions per conversion when the product is unpopular and difficult to promote.

Click-Throughs

Or Click-Thrus, these show how many visitors have clicked a link or banner ad on an affiliate’s page and landed on the advertiser’s product page. Click-Throughs are important in affiliate marketing because they let the affiliate manager know how many clicks are link on a particular site went through the advertiser’s page.

Tracking Metrics

Click-Through Rate

Or CTR, this is a tracking metric that is used to compare the number of clicks a link on an affiliate’s site has against the total number of impressions that link has received. This is important in affiliate marketing because it is valuable in pointing at certain flaws in an affiliate’s marketing strategy. If a link has more clicks than impressions, that affiliate is doing well. If the link has more impressions than clicks, something is wrong.

Conversions

The ultimate goal of affiliate marketing is to make conversions. Conversions are a tracking metric that also means sales. A conversion occurs when a visitor carries out the desired action on an affiliates site, which could be signing up for emails, filling an opt-in form, or buying a product. The more conversions an affiliate has, the more profit they make. The more conversions an advertiser gets, the more they sell, and the more profit they make.

Gravity

This tracking metric refers to how ‘hot’ or ‘cold’ a product is on the market. If a product is ‘hot’, that means the product is selling well. This then translates as high gravity. If a product is ‘cold’, it means that it is not doing so well on the market, and that translates as low gravity. The gravity of a product helps advertisers to know what products are in season and drawing more customers, and what products are not doing so well. It lets them see if they should pull off the product entirely, or just revise their marketing strategy.

Impressions

This tracking metric refers to the number of times a visitor has viewed an ad or a link on an affiliate’s website or blog. Impressions as a tracking metric are highly underrated in affiliate marketing, but they need to be taken more seriously. When used with other tracking metrics, impressions give vital information to affiliate managers and advertisers, like who has more impressions and fewer click-throughs, or vice versa.

Tracking Metrics

Reversal Rate

This tracking metric is very important to affiliates or publishers. It shows them the percentage of reversed commissions. Commissions are revered if a customer returns a product and gets a refund. This is then deducted from the commissions of the affiliate that made the sale. Affiliates use this tracking method to figure out which products have a high reversal rate so that they can avoid working with them. It is possible that the advertiser sells low-quality products, has a bad reputation, or has terrible customer service.

Traffic

Traffic is also called visitors or users, and it refers to the number of people visiting an affiliate’s website or blog. The more traffic a website or blog receives, the higher the probability of getting impressions and conversions. The lower the traffic, the less the chances of getting impressions, conversions, and click-throughs. This tracking metric is necessary for affiliates or publishers to measure how well their marketing strategies are working; it lets them know how visitors react to a certain promotional material, ads, links, reviews, et cetera.

These tracking metrics are important because in affiliate marketing because they help the advertisers and the affiliates know what marketing strategies are effective or not. The metrics let them know what affiliate marketing methods are generating leads and sales, and which aren’t. They also help affiliates know which advertisers to work with and which ones to avoid. These tracking metrics ultimately helps the advertiser and the affiliate to make more money.

So, if you don’t employ these tracking metrics already in your affiliate marketing business, you should do so now.

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