Calculating the cost per action (CPA) is a vital affiliate marketing metric for quickly assessing the success of a campaign. By looking at the total CPA, advertisers can determine which affiliates are causing the number to increase or decrease. Whether you're launching an affiliate program for the first time or have been managing one for years, it's important to understand the metrics that should be monitored and reviewed. The return on advertising investment (ROAS) is calculated as Revenue ÷ Expenditure%3D ROAS and is one of the key indicators of success.
Advertisers can use this information as a spending guide, compare it with other digital channels, and analyze this metric by individual affiliation. While commission rate is an important metric for affiliates, there are many other considerations when evaluating potential new advertising partners and the performance of current campaigns. Understanding what attracts an affiliate's audience and which channels or marketing campaigns work best for your business comes down to unlocking data and analyzing the key metrics. The focus on certain metrics will vary slightly between the affiliate and the advertiser; however, some of the metrics will remain the same.
If only a small percentage of your affiliates are active, it's time to re-evaluate your recruitment strategy. Affiliate marketing has many different facets and understanding key metrics and statistics (and their abbreviations) is as important as managing relationships on this channel. Both advertisers and affiliates prioritize successful programs as earnings are directly related to program success. Since recruiting affiliates is the most time consuming part of running an affiliate program, changing your segmentation strategy can make all the difference.
KPIs in affiliate marketing are usually numerical rather than other types of marketing, where these established objectives can be emotional or sentimental in nature. Let's say you've just launched your affiliate program, either in-house or with affiliate networks. Likewise, keep an eye out for potential affiliates who continue to send referral traffic and sales to your site, but who aren't official affiliates. If you want to get the best results from your campaigns, specific actions are the basis of effective iGaming affiliate marketing strategies.
In terms of affiliate marketing, it's the revenues of new customers that have been recommended by affiliates that should be examined in more detail to determine which blogs, affiliates, or networks are sending the most traffic and which are not. To maximize the effectiveness of your affiliate program, focus your marketing efforts on low- and high-volume sales affiliates as well as those who generate traffic but don't convert.