Is pay-per-click (PPC) advertising for affiliate marketing still effective in 2021?

When discussing PPC for affiliate marketing, it's important to differentiate between two types of performance-based marketing. Advertisers, also known as publishers, are paid for putting ads next to their web content in pay-per-click affiliate schemes.

Google AdSense is the most well-known example. Marketers are compensated for bringing customers to a retailer's website (in most cases, clicks).

Any affiliate marketer that promotes affiliate offers to their audience through paid advertising is referred to as a PPC affiliate marketer.

Continue reading for a more in-depth look at each PPC metric for affiliate marketing, including how to monitor it in your own campaigns and (most importantly) how to use it to increase the profitability of your PPC campaigns.

For ease of reading, we've separated them into keyword and ad-specific PPC metrics for affiliate marketing, which are simpler, and results-based PPC metrics, which are more advanced. They'll provide you with the actionable data you need to improve the efficacy of your campaign thanks to their combined abilities.

Keyword and advertising-based PPC metrics

• CPC (Cost Per Click)

• Clicks

• Click-Through Rates (CTR)

• Shared Impressions

• Conversion

• Rate of Conversion

• Custom Cost per Conversion

• Return On Paid Search Metrics

The complexities of PPC for affiliate marketing are unique.

Knowing what challenges can lie ahead will help you build a successful ad campaign strategy.

Tracking is restricted.

PPC testing and optimization require you to monitor the outcomes of your advertising. As an affiliate marketer, you can't simply create and add UTM codes to your URLs to monitor conversions because you don't own the websites for the products you advertise.

While conversions will not be tracked directly, you will be able to track ad clicks and views, as well as all activities on your affiliate landing page. You'll also have access to an affiliate dashboard, which shows you how much traffic and conversions you've taken to the merchant's site.

Hard to scale up:

Scaling entails spending more money for more clicks when you're bidding on them. On the other hand, the number of clicks, does not necessarily equal the number of conversions. A larger audience is required for more clicks, which is difficult to achieve, particularly if you're promoting a niche product.

Low-profit margins:

The most obvious problem with using PPC for affiliate marketing is profitability. You run the risk of wasting money on affiliate marketing advertisements that aren't successful.

The fear of losing money is a deal-breaker for many people. And, in most cases, concentrating affiliate marketing efforts on other networks is possibly the best option. Since you are only paid a fraction of the retail price, your campaigns must be well-planned and organised to be successful.

Low click-through and conversion rates:

As an affiliate, you can only bid on non-branded keywords, which are typically very competitive and attract more top-of-the-funnel traffic than people who can adjust. If low CTR and conversion rates produce performance, profitability would be harmed.

Rates of Click-Through (CTR)

The CTR (Click-Through Rate) is a metric that shows how often your ads are clicked. A high click-through rate (CTR) indicates that your ads are successful. A low Click-Through Rate (CTR) means that your ads need to be tweaked. The CTR is determined by dividing the total number of impressions by the total number of clicks on your advertisements. For example, your CTR is 10% if 1000 impressions result in 100 clicks.

It's difficult to pinpoint a single number that reflects a good CTR because CTR varies by industry. However, according to a survey of different industries, the average CTR ranges from 2% to 6%. CTR is affected only by the apparent portion of your ad on the search page. Only the copy and extensions of your ad will have an effect on your CTR.
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Reference posts: https://dailygram.com/index.php/blog/888560/a-brief-guide-to-ppc-metrics-important-ppc-metric-you-should-be-tracking/
https://www.revglue.com/blog-detail/66-9-key-ppc-metrics-you-would-want-to-track-now
https://www.techsite.io/p/2136045
https://writeupcafe.com/community/top-5-key-ppc-metrics-for-affiliate-marketing-want-to-track-now/?snax_post_submission=success
http://www.pullmancosta.cl/web/sarahneilson/home/-/blogs/143984