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Are you a novice publisher and want to learn the basic concepts used in affiliate marketing? Or maybe you are already a professional in this business and you look for equally professional solutions? If you are interested in current trends in affiliate marketing, and what is happening at MyLead, you are in the perfect place. We wish you a pleasant reading.

Optimizing affiliate campaigns, or how to deal with declines?

natalia.juszczak 2024-03-20 1

Affiliate marketing is a field that can deliver excellent results, but at the same time, it is full of challenges. One of the biggest problems publishers have to face is the decline in results. In this article, we will present a comprehensive guide that will help you understand why these declines occur and how to effectively deal with them. Let's consider each step in more detail, including practical tips and scenarios.

1. Improve your Google Ads campaigns

How to deal with declines in your Google Ads campaign?


One of the elements of advanced affiliate marketing strategies is the effective management of campaigns in Google Ads. Perfecting campaigns is crucial for achieving success in this area. Therefore, let's take a closer look at how you can optimize your campaigns and what to do when you start noticing declines in results.

Using Performance Max


Considering the type of campaign, it's worth paying attention to Performance Max. It is an advanced tool that relies on algorithms and enables automatic campaign optimization, resulting in better advertising outcomes. This modern strategy is based on customer acquisition through data and results, allowing for more precise and efficient advertising actions.


According to MyCodelessWebsite, Performance Max allows for a 22% increase in conversions and an overall 20% decrease in CPA. The same research indicates a 15-fold increase in conversion rates compared to regular online advertising campaigns. This means that affiliate publishers can achieve better results because this tool adjusts advertising performance based on data analysis and dynamically responds to changing market conditions. It's a solution that can significantly enhance the effectiveness of advertising campaigns in affiliate marketing.


Scenario


Imagine that you are running a promotional campaign for your affiliate program related to dietary supplements. At the beginning of the campaign, you use traditional advertising strategies in Google Ads. The results are satisfactory, but over time, you notice increasing competition, and advertising costs are rising.


That's when you decide to use Performance Max, allowing you to achieve better results as the tool adjusts ad performance based on data analysis. For example, if certain hours of the day yield better conversion results, Performance Max will increase the advertising budget during those specific hours.


It's worth emphasizing that Performance Max can dynamically respond to changing market conditions. If new competition arises or market trends change, this tool will adjust the advertising strategy to continue achieving the best possible results for the campaign.

Keyword analysis


Optimizing campaigns in Google Ads requires a detailed approach to keyword analysis. Statistics on the NeuroFlash website state that over 90% of online actions start with search engines, making keyword research even more critical for marketers and publishers looking to attract traffic and ultimately convert potential customers into buyers.


Keyword analysis involves examining and evaluating the words or phrases you use in your advertising campaign. In Google Ads, you can analyze keywords using tools available in the "Search terms" tab, where you'll find information about the performance of the keywords you use, allowing for precise adjustment of the advertising strategy to your campaign's needs. Here's why it's so important:


  • Identification of effective keywords - analysis helps identify keywords that deliver the best results. You can learn which ones generate the most conversions or have the best quality score.
  • Removal of inappropriate keywords - during the analysis, you may also notice keywords that do not provide value or generate clicks without conversions. These keywords can be costly, so it's worth removing or adjusting them.
  • Understanding user intent - analysis helps understand the needs of users who use specific keywords. This allows you to tailor ad content to their expectations.


Conversions, not clicks


Certainly, clicks are an important metric, but it's conversions, the desired actions you want users to take after clicking on the ad, that are crucial for the success of your campaign.


According to the author of the article "What’s the Average Affiliate Conversion Rate", the typical affiliate conversion rate is around 1%, meaning that 1 out of 100 clicks on an affiliate link results in a purchase. However, it's worth noting that the affiliate conversion rate can vary significantly and depends on various factors. For instance, if you're promoting an affiliate program related to solar panels, don't expect to acquire 1 customer per 100 clicks.


Industries and products of a more specific or advanced nature may have lower conversion rates because purchasing decisions in these areas are typically more complex and require a longer consideration process. In such cases, it's valuable to focus on other campaign success metrics, such as traffic quality or transaction value.


When you concentrate on conversions, you more precisely measure the effectiveness of the campaign. You can learn which keywords yield actual results and generate profits. This allows for optimizing the advertising budget by eliminating or adjusting keywords that don't lead to conversions.


Scenario


Let's assume you are promoting fitness and healthy lifestyle-related products. After a thorough analysis of keywords, you notice that the term "gym workout" attracts many clicks but has a low conversion rate. On the other hand, the term "dietary supplements for athletes" generates significantly more conversions. You tailor your strategy to focus on more precise and effective keywords to maximize conversions and profits.

Budget and costs


Balancing the budget is a crucial challenge in running affiliate marketing campaigns. To increase the efficiency of your campaign, it's worth focusing on aspects related to budget and costs. 


Managing the budget doesn't always have to be rigid and unchanging. It's valuable to experiment with budget flexibility, especially in such a dynamic environment as the advertising world. This means you can adjust your budget based on the needs of the campaign.


If you need assistance with budgeting in your campaigns, refer to the article "10 Tips for Managing Google Ads Budget".


Scenario


Let's assume you're running an affiliate campaign for sports products. During periods of high interest, such as the FIFA World Cup, you might decide to increase your advertising budget. This way, your ads will be more visible to fans, potentially resulting in more conversions.


On the other hand, during periods of lower interest in sports, like the off-season, consider reducing the budget to avoid wasting funds on ineffective ads.

Monitoring impact on CPA and conversion results


Equally important is monitoring the impact on Cost Per Action (CPA) and conversion results when experimenting with the budget. The average cost per action is calculated by dividing the total conversion cost by the total number of conversions.


For example, if an ad yields 2 conversions, with one costing $2.00 and the other $4.00, the average CPA for those conversions is $3.00.


CPA helps understand how changes in the budget affect campaign effectiveness. If you notice that increasing the budget results in a decrease in CPA and an increase in conversions, it may signal that continuing this strategy during periods of increased demand is worthwhile.


On the other hand, if reducing the budget leads to a drop in conversion results or an increase in CPA, it may suggest the need to adjust the strategy or budget.


Scenario


Let's assume you're running an affiliate campaign promoting electronic household devices. Your products are highly popular, especially during the holiday season. Consequently, you have high expectations for campaign performance during this period.


Step 1: Budget increase


Before the holiday season, you decide to increase the campaign budget. Your goal is to boost ad visibility and attract a larger number of customers.


Step 2: Monitoring impact


You regularly monitor the impact of the increased budget on Cost Per Action (CPA) and conversion results. With analytical tools in Google Ads, you have precise insights into how these indicators are changing.


Results: After a few weeks of monitoring, you notice that increasing the budget had the intended effect. CPA decreased, and the number of conversions significantly increased. This indicates that your strategy was effective during the period of increased demand.


Step 3: Continuing the strategy


Based on the monitoring results, you decide to continue the strategy of an increased budget during the holiday season. This allows you to further maximize conversions and profits.


Alternate scenario


Now, let's say that after the holiday season, when demand for products decreases, you decide to lower the campaign budget to control costs.


Step 1: Budget decrease


After the holiday season, you decide to lower the budget to align it with reduced demand for products. You want to avoid wasting funds on ads that don't yield the same results.


Step 2: Monitoring impact


You continue regularly monitoring the impact of the decreased budget on CPA and conversion results. You analyze how these changes affect campaign effectiveness.


Results: After a few weeks, you notice that reducing the budget led to an increase in CPA, and the number of conversions decreased. This signals that reducing the budget during this period was not effective.


Step 3: Adjusting the strategy


Based on the monitoring results, you decide to adjust the strategy. You may choose to return to a higher budget during periods of increased demand or make other changes to the campaign to achieve better results.


This scenario illustrates how crucial it is to monitor the impact of budget changes on CPA and conversion results and how this information can shape the affiliate marketing advertising strategy.

2. Using trackers to track results

How to understand the effectiveness of your campaign with trackers?


Tracker is an absolutely essential tool in advanced affiliate marketing. Here's why a tracker is such a crucial element in affiliate strategies:


  • Tracking campaign results - a tracker allows for precise tracking of campaign results, which is crucial for any advanced affiliate publisher. With a tracker, you have access to precise data on the number of clicks, conversions, advertising costs, and many other metrics.
  • Identifying traffic sources - a tracker enables the identification of traffic sources, allowing you to discover which advertising platforms, campaigns, or social media channels yield the best results.
  • Analyzing action efficiency - With a tracker, you can precisely analyze the effectiveness of your actions. You can compare different campaigns, test various strategies, and monitor which ones deliver the best results.


Detailed information on using trackers in affiliate marketing, along with practical examples using various trackers, can be found in our dedicated article, where you'll find specific steps on how to effectively use trackers in affiliate marketing, as well as the benefits and capabilities of specific tools for tracking campaign results. If you're seeking even more detailed information, this article will undoubtedly provide the necessary knowledge on the subject.


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Scenario


Let's say you are running multiple affiliate campaigns promoting fitness products. Your goal is to achieve the highest number of conversions. Without a tracker, data about a specific campaign is unclear.


Step 1: Choosing a tracker


You decide to choose an advanced tracker that offers sophisticated data analysis features. This is the first step toward full control over your campaigns.


Step 2: Monitoring results


Using the tracker, you monitor campaign results in real-time. Monitoring includes various aspects, from the overall success of the campaign to details such as the performance of specific offers or traffic sources.


Results: The tracker enables you to understand subtle differences in user behavior. You see that users with macOS computers are more likely to convert on one offer, while Windows users prefer another.


Step 3: Identifying traffic sources


The tracker helps you identify traffic sources, but what becomes clear through it is the subtle differences in user preferences. You discover that most conversions from the campaign you're interested in come from YouTube video traffic, but that's only part of the information. You focus on the most promising traffic sources and exclude those that don't meet expectations.


Step 4: Analyzing effectiveness


You regularly conduct an analysis of campaign effectiveness. Thanks to the tracker, you discover that one of the campaigns generates a lot of clicks but a low number of conversions. The tracker helps understand that it's not just about overall traffic but also the mentioned user preferences and behaviors. You decide to revamp this campaign, adjusting its content based on the data obtained through the tracker.


The tracker becomes a crucial tool in your marketing arsenal, allowing for precise tracking and analysis of the effectiveness of all affiliate campaigns.

3. Diversifying traffic sources

What to do when a selected traffic source is no longer effective?


In advanced affiliate marketing, a helpful idea for achieving better results is to expand and experiment with various traffic sources. This means not relying solely on one advertising channel or one type of campaign.


For example, according to OptinMonster, SEO is the primary traffic source for over 69% of affiliate marketers. Social media comes next, utilized by 67% of marketers. Blogging takes the third spot, constituting 65% of marketers. Pay-per-click (PPC) advertising ranks fourth on the list with 34% of marketers. These data show that affiliate publishers do not focus on a single promotion method.


With the diversity of traffic sources, you have more control over your results. Here's why it's so important:


  • Risk diversification - by expanding traffic sources, you diversify risk. You are no longer dependent solely on one advertising platform or one type of campaign. This means that even if one traffic source starts to weaken, others may compensate for it.
  • Performance optimization - the diversity of traffic sources also gives you the opportunity to optimize performance. You can test different strategies on different channels and find out which ones yield the best results. This allows you to optimize budget allocation.
  • Expansion of audience groups - diversifying traffic sources allows you to reach a broader audience. You are not limited to just one user group, which can result in a higher number of conversions.


And if you're wondering which traffic source is best for you, don't worry. Read our article, which discusses various traffic sources, their pros and cons, and highlights best practices for choosing the right traffic sources. It's a valuable source of information that will help you make an informed choice and tailor your affiliate marketing strategy to specific needs.


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Utilizing ad networks


One of the crucial elements in expanding traffic sources is ad networks. These networks are platforms that enable the display of ads on various websites. They operate on an auction principle, where advertisers compete for space on publisher sites. Why should you include them in your strategy?


  • Extensive network of affiliate sites - ad networks collaborate with a broad base of affiliate sites, meaning your ads can be displayed on many different web pages.
  • Targeting - you can precisely define the target groups that should see your ads, increasing the effectiveness of your campaign.
  • Variety of formats - ad networks support various ad formats, including banners, text ads, video ads, and many more.


Additionally, we've prepared a useful article discussing affiliate tools that can significantly ease your operations. In the post, you'll find suggestions for recommended ad networks, along with a more detailed explanation of why these networks are extremely useful in affiliate activities. You'll also find information about other tools that can help you optimize and monitor the effectiveness of your campaigns. It's an excellent source of information for anyone looking to effectively manage their affiliate campaigns.


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Scenario


Let's assume you're promoting products related to a healthy lifestyle and fitness. So far, you've mainly focused on advertising campaigns in Google Ads. Now it's time to broaden your traffic sources by using ad networks.


Step 1: Choosing new traffic sources


Start by selecting new traffic sources, including ad networks. Consider various options such as:


  • Google Display Network - one of the largest ad networks allowing ads to be displayed on thousands of affiliate sites.
  • Facebook Audience Network - Facebook offers an ad network that allows ads to be displayed beyond the Facebook platform.
  • Other Ad Networks - there are many other ad networks specializing in different industries and types of ads. Explore available options and choose those that best fit your campaign. There is also a helpful list of ad networks on the AffiliateFix forum, which you can find by clicking HERE.


Step 2: Testing new strategies


You initiate testing of new strategies on selected traffic sources, including ad networks. Then, you create campaigns, tailor content to the specifics of each platform, and monitor the results.


Results: After a few weeks, you notice that ads displayed on affiliate sites in the Google Display Network bring significantly more conversions than campaigns in the Google Search Network. This discovery allows you to increase the budget for the Display Network and continue maximizing results.


Step 3: Optimization and scaling


Based on the results, you optimize strategies on each traffic source, including ad networks. You keep working on increasing conversions, reducing costs, and scaling your efforts.


Expanding traffic sources, including utilizing ad networks, becomes an integral part of your affiliate marketing strategy. This gives you greater control over the campaign, increases your visibility, attracts more customers, leading to better results and greater profits.

4. Testing location and targeting techniques

What to do when a campaign targeting a specific GEO has stopped converting?


In the ongoing development of affiliate marketing campaigns, testing locations and targeting techniques plays a crucial role. This is the stage where you can tailor your actions to specific regions and target audiences. Why is this important?


  • Adaptation to local preferences - different countries and regions may have varying preferences and shopping habits. Through location testing, you can adjust your ad content and offers to suit specific local markets.

    For example, investment programs might work well in markets like the United States, a market with tremendous potential and a large customer base. On the other hand, in Eastern European markets like Poland, different product categories, such as affiliate programs offering health or wealth amulets, might be more favored due to distinct preferences.

    In summary, testing locations and tailoring campaigns to local preferences are key elements of affiliate strategies. This allows you to leverage differences between markets and maximize campaign effectiveness in various regions.

  • Precise targeting - testing different targeting techniques is a crucial aspect of optimizing affiliate marketing campaigns. It enables more precise reach to specific audience groups, resulting in more efficient outcomes.

    For instance, by specifying age, gender, interests, or purchasing preferences, you can personalize your messages and offers, increasing the chances of capturing potential customers' attention.

  • Scaling activities - if specific locations or targeting techniques yield excellent results, you can scale your efforts in those areas. This allows for the efficient use of your budget.

    For example, if certain locations generate outstanding results, consider increasing the advertising budget targeted at those specific regions. This enables more impressions and potentially higher conversion rates.

  • Utilizing analytical tools - in the process of testing locations and targeting techniques, leverage analytical tools. Data analysis is crucial for improving campaign results and adjusting strategies.

    Analytical tools such as Google Analytics, trackers mentioned earlier, or even heat maps allow you to collect and analyze data on user behavior. You can track which locations generate the most conversions, which targeting techniques yield the best results, and which ad content is most effective. This provides a comprehensive understanding of campaign performance.


Scenario


Let's say you're promoting fashion and accessory-related products. So far, your campaigns have been targeted to the general national market. Now, you want to explore whether testing locations and targeting techniques can improve results (consider that adapting creatives might be necessary when testing locations due to language and images appearance).


Step 1: Location selection


You start by choosing locations to test. Then, you scrutinize your data and analyze where your offer garners the most interest. You can also select promising locations that haven't been explored yet.


Step 2: Testing targeting techniques


You proceed to test different targeting techniques. Sample techniques could include:


  • Age targeting - determine if your products are more attractive to younger or older consumers.
  • Interest targeting - investigate if ads focused on specific interests yield better results.
  • Gender targeting - check if your products are more popular among men or women.


Results: After a few weeks of testing, you discover that ads targeting a specific age group yield significantly higher conversion rates. Also, locations in densely populated cities turn out to be more profitable.


Step 3: Optimization and scaling


Based on the results, you optimize your campaigns. You adjust ad content (including the use of new language versions) and targeting strategies to local preferences and needs. When you see that certain locations and targeting techniques deliver excellent results, scale your activities in those areas.


Testing locations and targeting techniques allows for more precise outcomes, adaptation to different markets, and increased campaign effectiveness. It's a key element of an advanced strategy that can yield greater profits.

5. Testing different creatives

What to do when a campaign has stopped attracting an audience?


Testing various creatives is another essential element in advanced affiliate marketing, allowing for the refinement of advertising campaigns and mitigating the risk of declines. The choice of appropriate ad creatives is crucial because it directly impacts the effectiveness of the campaign. Testing enables the precise determination of which messages capture the audience's attention, generate conversions, and avoids budget waste on ineffective ads. There are several types of creatives:


  • Text Ads - short text-based announcements often used in search contexts or Google Ads campaigns.
  • Graphic Ads - ads containing graphics and text, effective in capturing attention with visual messaging.
  • Video Ads - video ads delivering a comprehensive message, ideal for showcasing a product in action. It's worth mentioning that studies show 59% of people prefer video format over lengthy articles.
  • Interactive Ads - ads that engage the audience, such as quizzes or games.
  • Remarketing Ads - ads targeting individuals who have already visited your website, aiming to remind them of your product.

A/B testing for precise creative refinement


A/B testing involves comparing two variants of a given creative to determine which one produces better results. This process is a key component of optimizing advertising campaigns in affiliate marketing, and trackers, as described earlier, assist in conducting A/B tests.


Our article on conducting A/B tests provides detailed insights into this process. The post offers practical tips and strategies to help you fully leverage the potential of A/B testing — an invaluable source of information for those looking to refine their affiliate marketing campaigns.


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Scenario


Let's say you are running an affiliate marketing campaign promoting fitness products, with the goal of maximizing conversions on the treadmill manufacturer's website. Let's explore how to effectively conduct A/B tests within this campaign.


Step 1: Choosing types of creatives


Start by selecting different types of creatives to test. For a treadmill-related campaign, you might choose:


  • Graphic ads depicting the product in action.
  • Video ads showcasing the benefits of the treadmill.
  • Text ads with promotional slogans.


Step 2: Creating and monitoring campaigns


You create separate campaigns for each type of creative and monitor their effectiveness. Then, you utilize analytical tools to gather data on clicks, conversions, and costs.


Step 3: A/B testing


You conduct A/B tests within each campaign, experimenting with different variations of creatives. For example, in the graphic ads campaign, you test different images or colors for CTA buttons.


Step 4: Analyzing results


After some time, you thoroughly analyze the results of A/B tests. You learn which creative yields the best results in terms of clicks and conversions. Then, you allocate budget favorably to campaigns that perform better and adjust creatives based on the collected data.


Step 5: Continuous testing


Creative testing is an ongoing process. Even after finding effective creatives, you don't stop experimenting. New trends, changing audience preferences, and competition require regular testing and adjustment of advertising strategies.


Testing different ad creatives and utilizing A/B tests undoubtedly help avoid declines. They enable the discovery of the best ad messages, capture audience attention, and increase conversions. Systematic testing and result analysis allow you to keep campaigns at a competitive level and maximize return on investment.

Summary

Strategies to help with affiliate campaign declines


Affiliate campaigns can sometimes pose significant challenges. Instead of getting discouraged, it's valuable to know that there are advanced strategies that can help you navigate through tough times.


  • Perfecting your Google Ads campaigns is a crucial step if this is your primary focus. Through proper optimization, you can maximize the efficiency of your ads.
  • Don't forget about budget balance and monitoring the impact on cost per action (CPA) and conversion results. This allows you to effectively utilize your resources.
  • Do not hesitate to use tools like trackers that help you track campaign results and understand what works and what doesn't. This is absolutely crucial for monitoring campaign effectiveness and adjusting strategies.
  • Diversifying traffic sources is another important step. Don't put all your eggs in one basket—diversity in sources provides greater control over results.
  • Testing locations and targeting techniques, as well as different types of ad creatives, allows you to tailor your actions to the changing needs of your audience.


In challenging moments, remember that setbacks in campaigns are part of the game. It's a great opportunity for learning and honing your skills. Understanding, managing, and reversing declines is a challenge that can lead you to even greater success. And remember, achieving success in affiliate marketing always requires a lot of perseverance and creativity. Good luck!

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