After nearly a decade promoting affiliate offers, I still meticulously track every campaign and placement.
Monitoring key performance indicators enables me to double down on what works and swiftly eliminate inefficient tactics.
For those just getting started, learning how to calculate metrics like cost per acquisition (CPA), return on investment (ROI) and conversion rate is crucial.
In this post I’ll break down my approach to affiliate campaign tracking as simply as possible.
Understanding Campaign Data At Cherrington Media
Before calculating metrics, getting campaign data in order is an essential first step.
I use reliable tracking software that integrates with all my traffic sources and offers in one dashboard.
By having campaign expenses, overall clicks, conversions and commission payouts in one place…
I have the raw inputs to assess performance. Garbage in means garbage out, so accurate foundational tracking is non-negotiable.
Adam Cherrington Establishing Benchmarks
Once core data streams feed into my tracking software, I establish expected CPA and conversion rate benchmarks for each offer vertical and traffic source.
From running thousands of campaigns, I know ballpark averages to aim for.
While benchmarks vary widely based on factors like niche competitiveness and audience intent, over time you build an intuitive sense of reasonable targets.
Comparing campaign performance to pre-set benchmarks quickly tells me if things are firing on all cylinders.
Calculating Cost Per Acquisition At Cherrington Media
Arguably the most fundamental affiliate marketing metric, CPA represents the average spend required to generate a conversion.
I calculate CPA by dividing total placement spend by the number of sales driven.
For example if I spend $1,000 driving ads and make 50 sales at $50 commission, my CPA is $20 ($1000 total spend divided by 50 conversions).
The lower the CPA relative to commission payout, the more profitable the campaign.
Getting Granular on ROI
While CPA provides a quick snapshot of efficiency, return on investment (ROI) analysis takes things deeper.
ROI represents overall placement profitability by comparing returns to expenditure.
I calculate ROI by subtracting CPA from commission value, then dividing by CPA.
For example if my program pays $60 per sale and my CPA is $30, the ROI is 30% ([$60 commission – $30 CPA] / $30 CPA).
Shooting for an ROI of 30-50% across campaigns ensures healthy overall profits.
Monitoring Conversion Rate Closely
I closely monitor conversion rate for each campaign and variation – calculated by dividing conversions by total clicks.
This ratio reveals how effectively placements convert eyeballs into sales.
If I drive 500 clicks to a landing page which capture 20 sales, the conversion rate is 4% (20 conversions / 500 clicks).
I analyse conversion rates down to individual ads, pages and emails to diagnose sticking points underperforming benchmarks. Optimizing conversion rate has an exponential impact.
Always Be Testing
I rely heavily on A/B split testing across Cherrington Media campaigns.
Testing enables me to double down on what shows measured promise while eliminating laggards.
I’ll continually test elements like ad variants, landing pages, email sequences and special offers across a small portions of traffic.
Winning variations beating the original on ROI and conversion rate get progressively rolled out further.
This optimization flywheel means our results compound over time.
Cherrington Media And Automating for efficiency
Given the number of active promotions and tests underway at any time, I leverage automation rules to streamline analyzing data.
When new campaign data connects, autoresponder workflows notify me immediately of outliers drastically under or overperforming expectations.
Other rules automatically pause placements breaching targets after sufficient statistical significance.
This efficiency enables me to focus energy only on interpreting what really matters.
Assessing Trends not Outliers At Cherrington Media
With clients often panicking over a single unusual day, I’m constantly reminding them short term outliers don’t matter.
When daily volumes fluctuate, I examine 7 and 30 day rolling averages to assess real trajectory.
Temporary anomalies happen but campaigns are marathons not sprints, so stable long run performance trends are my north star.
I only optimize or alert clients when data truly starts trending the wrong way over multiple weeks.
Always Be Learning
Even after years optimizing campaigns, I still discover new insights from results every week.
I don’t just assess metrics, but dig into understanding why some placements systematically outperform others.
Continually searching for these lessons enables us to codify winning approaches into our process.
I also share aggregated analysis from top performers across our affiliate network to help elevate everyone’s game. Obsessively tracking campaign data powers continual evolution.
Patience Creates Breakthroughs
The most profitable campaigns I’ve run often underwhelmed upfront before later unlocking scale.
When testing new traffic platforms, I often aggressively ramp budget expecting instant returns.
However chasing scale too early can tank metrics and kill placements prematurely if not given a chance to mature.
These days I tread patiently with new sources, allowing 6-12 weeks before assessing performance trends. This patience unlocks breakthroughs.
Adam Cherrington Says- Trust But Verify Partners
I forge partnerships with many talented marketers driving volume to my offers or sites.
Before working with any new partner I thoroughly vet their integrity and results.
However even when contracts kick off I still verify performance data independently using my own tracking.
While most partners have good intentions, occasionally reported numbers don’t fully line up with reality once investigated deeply.
Trust combined with verification is key.
By relentlessly assessing campaign vitals across Cherrington Media’s affiliate network, marginal gains turn into exponential returns compounded over years.
Rather than chasing vanity metrics, focusing on mastering core performance indicators like CPA and ROI paves the lasting path to profit.
Skilled tracking and analysis can elevate any affiliate marketer’s game over time, so ingrain these habits early.
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