Return on investment (ROI) is one of the main measurements in affiliate marketing. You can not overestimate the importance of this index, as it is the one that shows you how effective your investments are at one or another step of your advertising campaign. Calculating your campaign’s ROI helps you to find the answers to a huge number of questions. It will show you whether you should increase volumes or not, change your creatives or a whole approach to advertising, or whether you need to stop driving traffic from one source and concentrate on another.
As you can see, ROI shows how well you perform during your advertising campaign. And logically, the higher ROI is, the better results you have shown and the more profit you have received. That is why every affiliate is looking for new opportunities to increase their ROI. Here, we take a look at the best six ways and tools to make it real.
Your choice of network influences your profit. This is indisputable. And it is not only the matter of how much the payout is (though it is important also). All the factors being equal including payout rate, the same offer may be more profitable at one network than at the other network. That is why you should first conduct split testing between the networks to find out at what network the offer works better.
While choosing the network you are going to work with, you should also pay your attention to the following issues: whether a network works directly with an advertiser or not, how great their support team is and whether the network provides you with an account manager or not. As a matter of fact, having reliable account managers in a team is a crucial tool itself. They will be the ones who will lead you into the world of big money. Don’t be afraid to ask them for an advice regarding most up-to-date offers, best geo for them and any questions you feel important to discover, as an account manager is such an amazing source of information! You may not only receive new knowledge from them but also find out your mistakes if something went wrong during your advertising campaign. Anyway, there is always a possibility to ask your account manager to raise your payouts. If your performance deserves a higher reward, be sure, that your account manager will reach out to you.
Identifying your audience is a crucial step on the way to a higher ROI. The more you understand your potential clients, their behavior and needs, the better traffic you can drive to an advertiser. So, try to gather all the possible information about your target audience: who are they, what they do, where they live, what are their interests, what groups or communities they are subscribed to, what they are searching on the web, and so on. For example, choosing the right keywords for your campaign may be a very good help for your advertising campaigns, as you may find out what user request leads them to purchase your goods or services. There is a number of free and paid Keyword Research Tools. If you have a limited budget, try some free or ones like Google Keyword Planner, Ubersuggest and LSIgraph. Of course, they do not allow you to conduct a full-scale research, but they will definitely be a good help for you and will suggest you a list of keywords and phrases, their regional and global volume and a level of competition for each keyword. Not bad for a start, right?
Once you targeted your advertising campaigns, you need to grab your potential users’ attention to your offer. Good, professionally designed banners, pre-landers and other creatives will help you with this. Basically, sending traffic directly to your offers might be enough to achieve good results. But if your intentions are to increase your ROI, you should consider designing your own landing and pre-landing pages. No worries if you are not a guru of PHP, HTML, CSS or whatever other technologies. Nowadays there are tons of design tools that will help you to make a very good design of your creatives, as well as really professional landing pages. Anyway, you may always download a ready-to-use landing page and customize it for your target audience and creatives.
Competitive analysis is crucial, especially when you decide upon your primary strategy for future developing. You may need to have a look at the main players though not to leave anything out of account. Second, the competitive analysis gives you insights why these or that creatives make a success with a particular audience. Luckily, nowadays you don’t need to conduct complicated surveys to find this information. There are a lot of spy tools to help you find out which advertising campaigns have been successful and even to target them by gender, age, geo, device and other parameters. WhatRunsWhere, AdPlexity, Adbeat, SpyFu, BoxOfAds – these are very popular spy tools, from which you may learn a lot, as well as download some creatives, cater them to your target audience, and even make a decision to join a particular advertising network. So don’t underestimate this tool, as you may reduce your expenses on A/B split testings, thus increasing your ROI.
Tracking your advertising campaigns and analysing data is a must for every affiliate. If you don’t know which results you have shown, how can you improve your performance in the future?
Make sure you track each advertising campaign at all the stages of Sales Funnel: from the first click of your potential client to the final point of sale. Nowadays there are a lot of good tracking services, such as Redtrack, Voluum, Adsbridge and so on, that will help you to do it in the best way. Use them to gather all the possible data and analyze correlations. It will not only reduce your time on annoying manual tasks but also will give you a better understanding of your performance and help you to improve it if needed.
Automation reduces your costs and time; and the lower your costs are, the higher profit you get – this is an ultimate truth. Fortunately, automation is no longer a problem in affiliate marketing: there are a number of ways how to make Artificial Intelligence work in favor of the industry players. You can automate a number of processes, from media buying to analysis, and even optimize your campaigns through Smartlinks. Smartlink is a powerful monetization tool which allows affiliates to get only one link to all the offers. Using the technology of machine learning, it automatically selects the offers by a number parameters, making maximum profit on certain traffic. This is how everybody gets the highest possible ROI. There are other good affiliate marketing software solutions available in the market such as Rakuten Affiliate Marketing, so feel free to check it out too.
As you can see, even if your ROI looks really high, there is still a room for improvement, believe me. Choose good CPA Network, use best tracking and automation tools, build unique creatives and so on. In other words, test what works for you, and what doesn’t. Be open to everything new, but choose the best!
On a related note, read our article on the top 12 most profitable online businesses to learn more about your earning options on the internet.
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