Marketing How To: A Brief Description of Affiliate Marketing Metrics
Marketing How To: A Brief Description of Affiliate Marketing Metrics
Affiliate marketing offers immense opportunities for everyone to create huge amount of wealth. All that you have to do is to register with a legitimate online retailer (like ClickBank); choose a good product and promote it extensively on the internet.
One major advantage of affiliate marketing is that you will have access to a huge amount of data for analysis. You can determine product interest, forecast sales and even predict what the person might buy next based on what he/she was looking for on the internet. All this has made decision making easy and effective.
In affiliate marketing, you come across two types or data: raw data and derived data. The raw data is discrete and unaltered value. Derived data is derived from raw data. It is more useful in analyzing the performance.
Here are some examples of raw data:
- Impression: When some one views your ad banner, it is considered as an impression.
- Click: When some one clicks through your ad banner, it is considered as a click.
- Sale: When some on buys the product through your link, it is considered as a sale.
- Sales Revenue: It is the value ($) of the sale.
- Commissions Paid: It is the amount of commissions paid.
Here are some examples of derived data:
- CTR (Click-through rate): It is arrived at by dividing the number of clicks divided by the number of impressions. High CTR is an indication that your ad banner is working.
- Conversion Rate: It is calculated by dividing the sales number by the number of clicks.
- AOV (Average Order Value): It is calculated by dividing the sales revenue by the number of sales.
- EPC (Earnings Per Click): Commissions paid divided by clicks. You can calculate the EPC of your ad banners, which will help you to retain the best.
Marketing how to experts suggest that you create a customized scorecard for yourself, so that you will be able to view all these metrics in one place. You need not spend a fortune on this. Your humble Excel will serve the purpose. Marketing how to experts recommend that you spend some time every day in analysis. This practice helps you to stay ahead of your competitors.
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