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Last Updated on September 7, 2023 by Work In My Pajamas
“What gets measured, gets managed and managing for success is what is called optimization.”
Focusing on today’s challenges faced by people who want to make more money from affiliate marketing and performance marketing. It is necessary to look at the 5 Things that you should know before using any performance marketing tools.
But first, let me give you a glimpse intro about Affiliate Marketing and Performance Marketing. After that, I will show you the things that you should know to become a Pro in Affiliate Marketing | Performance Marketing.
Ready? Yeah!
In This Post:
What is Affiliate Marketing?
Nowadays, it is the performance based marketing in which the business rewards one or more affiliates for each visitor or customer brought by the affiliate’s own marketing efforts.
Keeping the clear objective in the mind, businesses(or advertisers) usually try this paradigm as to build their brand or convert their prospects/ leads into sales.
They start an affiliate marketing program by spreading the offers to their publishers. And those publishers will give them leads to make a sale of the product.
For example, a blogger who becomes the Amazon affiliate | publisher monetizes his site/or app to make money by signing certain Amazon’s T&Cs. After that, blogger will get his/her commission via Amazon, whenever a visitor is converted into a customer of Amazon products via his site/app via different Media Buying Models which Amazon uses like CPA, CPC, CPM.
What is Performance Marketing?
Performance Marketing is a term referred in online marketing and advertising programs in which advertisers and marketing companies(a.k.a, “affiliates” or publishers) are paid when a specific action is completed; such as a sale, lead or click.
Actually, Performance Marketing motive is to increase the Return on investment of Advertiser by measuring clicks, conversions and reach aspects via ad-exchanges, ad networks, affiliate programs, etc.
Whereas the Affiliate Marketing motive is to get more visitors on advertiser’s site or increase sales by exploiting affiliate programs via affiliates.
For example, an advertiser whose objective is in selling the product will surely keep primary KPI as the product sales and later will consider, Cost per lead(CPL) as his metrics via performance measuring tools. After that only, the advertiser will run campaigns via publishers and pay them through metric basis for example, $0.50= 50 leads. That’s it!
I think that would clear your misconception in between Affiliate and Performance Marketing.
But you must be thinking where these performance marketing tools are actually used? Yes? So to measure the clicks, conversions are done via publisher; advertisers generate tracking links for publishers via performance marketing tools. Moreover, these tools act as helping hand for advertisers and publishers both from building campaigns, setting payouts and monitoring conversions.
Now it’s time to inform you – 5 things that you should know before using any performance marketing tools.
1. Measurability
“What gets measured, gets managed”
Performance marketing is based on the measurability basis to test out the campaigns related to brand building, conversions and promotions.
You need to understand the underneath meaning of CPM, CPI, CPL, CPA, CR, CTR, CPS like metrics to monitor the progress. This should be done before using any performance marketing tools( if you are a beginner).
After that, you need to consider the tool for understanding affiliate marketing, performance marketing, native advertising for measurability. It would be better initially to choose a performance marketing software on freemium basis to track clicks, conversions for site or app for a given time period.
2. Modularity
The campaign is divided into many small budget modules, which can be individually booked and assessed.
Modularity clearly let you track the clicks, conversions and impressions from different sources through UTM features in the Performance Marketing Tools.
Besides that, the power of informing the affiliate or advertiser, where their links are being clicked. It becomes easy for the advertisers to give priority to that channel, niche specifically to increase the ROI for that campaigns.
So look for the tool, that clearly gives you the source tracking(on app or site individually), event tracking, in- app tracking, paid events tracking.
3. Optimization
By adopting different parameters (ad text, advertising design, environments, click bids, etc.), the effectiveness of the campaign can be influenced and improved during the runtime.
For instance, optimization works well analyzing the information of the user’s Geo, Demographics, clickstream, Purchase History for optimizing further ppc ads.
Due to this very reason, ad-exchanges work to give the visitor better experience at run time on the publisher’s site via ads.
Check out that tool which works smoothly with ad exchanges, and ad networks and optimizes the pay per clicks campaigns depending on the environments. Hence, giving the real time optimized ad displaying and tracking of the visitor on publisher’s site- to generate more revenue.
4. Integration
Performance marketing can be integrated into a classic campaign as an interaction element.
There are various integration things that performance marketing tool should encapsulate in it.
For instance, an ad-network-A partnered with ad-network-B uses X and B uses Y performance marketing software. If A build campaigns on X and wants to run and track them from Y, then X and Y should have the integrating features via Postback Tracking for tracking campaigns.
So, the new tool which you are going to use must have the ability to trace your campaigns over different ad-networks with powerful integration feature. This will definitely help you gain emphasis on offers, clicks, conversions, impressions, etc. through different networks.
5. Reviews
Check the reviews of the particular tool which you are going to use for performance marketing. I know you will definitely do that, but still, I will say it becomes a must to gather on the authentic reviews site about the product.
Reviews act as a knowledge source for the Businesses and the customer for product choice. As it acts as a source of feedback for the forthcoming customers, it aids them about the realistic product’s features and benefits.
Hence, don’t miss the reviews before actually opting in the performance marketing tool for future.
Conclusion
In this article, I informed you about the affiliate marketing, performance marketing and 5 things that matter – measurability, modularity, optimization, integration and reviews to make you a better affiliate | performance marketer. I hope that you will consider a better tool for performance marketing tool now for your business.
Image Source: http://vnative.com/wp-content/uploads/2017/08/5-Things-To-Know-Before-Choosing-Performance-Marketing-Tool-4.png
