How important is tracking in affiliate marketing?

Tracking is one of the most crucial aspects in affiliate marketing. Unlike offline marketing, tracking allows affiliate marketers to measure the traffic being directed to other sites. In other words, it enables them to track the reach of their campaign. Before we move on the significance of affiliate marketing tracking, let’s understand what affiliate marketing is all about:

Affiliate marketing for beginners

Affiliate marketing is a performance-based marketing method through which an individual, also known as an affiliate or publisher, promotes a company’s product / service online. Affiliates earn a commission for every product / service recommendation they make to online users.

But they can earn commission only when an online user actually buys the product or service.

How it works

Simply said, an advertiser (company selling a product or service) signs an agreement with an affiliate / publisher. This agreement states that the publisher or affiliate will receive a commission for every product or service sold on their website.

Every time an online user buys the advertising firm’s product or service through the affiliate or publisher’s website, they will receive a commission. Usually, consumers can see the product advertisements placed on the publisher’s website. Once they click on these ad links, they are taken to the company website. At this stage, a conversion takes place.

Affiliate marketing depends on cookies. Cookies store information with a website browser. This information could be user preferences, login information, etc.

Cookies save the ad or the link that online users click on. Additionally, cookies can also store the time and date of every click.

Although there are different types of cookies in affiliate marketing, first party is the most vital.

Every time someone visits a publisher’s website and clicks on the ad, the online user’s web browser receives the tracking cookie. This cookie then identifies the advertiser and the publisher and this data is stored in parameters.

Affiliates send web traffic to companies through URLs. The affiliate tracking software gives them a unique identifier in the URL. These links establish a cookie on the customer’s computer, which makes it possible for the software to track the sale.

Why tracking matters

Whether or not conversions occur, an affiliate tracking software collects and analyzes data. It tracks leads, clicks and sales. Tracking helps companies and affiliates understand their campaign’s strengths and weaknesses.

It allows firms to make improvements to product and the campaign. And if you are looking for the best affiliate sales tracking software, we have you covered. We make affiliate tracking and marketing easy! Start your free trial here.