How to Create an Affiliate Ad explained in 5 steps

Affiliate marketing is a great way to monetize your blog or website and drive traffic to your business. It can also be a challenging task if you aren’t familiar with the ins and outs of affiliate marketing.

That being said, affiliates are an essential part in almost any online business. Affiliates are third-party marketers who market products on your behalf and receive a commission for the sale they drive. Here are 5 steps to help get you started on making an affiliate program for your product or service.

Topic Index
  1. Step 1: Decide on your marketing program type
  2. Step 2: Define your success metrics
  3. Step 3: Choose your ad platforms
  4. Step 4: Define and write your ad copy
  5. Step 5: Track and test your ads

Step 1: Decide on your marketing program type

The first step in deciding on an affiliate program for your business is deciding on what type of program you want to create.

  1. There are four main types of affiliate programs: tiered, revenue share, CPA, and CPL.
  2. Tiered programs: Tiered programs are the most common type of program. With tiered programs, affiliates are given different commission rates depending on what their sales and performance metrics are. For example, an affiliate could earn a 50% commission on sales that they refer, but only a 25% commission if the customer spends less than $100.
  3. Revenue share programs: With revenue share programs, affiliates are given a fixed percentage of the sales they drive. The amount varies based on the vertical or product category the affiliate marketer is promoting.
  4. CPA programs: CPA stands for cost-per-action. With a CPA program, affiliates are paid when a certain action is performed. Some common examples of CPA marketing include paying affiliates when a visitor signs up for your email list or when someone fills out a contact form.
  5. CPL programs: CPL, or cost-per-lead, is similar to CPA programs in that affiliates are paid for taking a specific action. CPL is often used for lead generation campaigns.

Step 2: Define your success metrics

Success metrics help you measure the effectiveness of your affiliate marketing program. Success metrics vary from vertical to vertical, but there are a few metrics that are consistent across all types of affiliate marketing.

  1. Conversion rate: The conversion rate is the percentage of visitors who view an affiliate advertisement and then complete a desired action.
  2. Revenue per visitor: The revenue per visitor metric shows how much the average visitor is worth to your business.
  3. Revenue per sale: This metric shows what percentage of visitors who view an affiliate ad results in a sale.
  4. Affiliate retention rate: The affiliate retention rate is the percentage of affiliates who stay engaged with your program.
  5. Conversion rate: The conversion rate is the percentage of visitors who view an affiliate advertisement and then complete a desired action.
  6. Revenue per visitor: The revenue per visitor metric shows how much the average visitor is worth to your business.
  7. Revenue per sale: This metric shows what percentage of visitors who view an affiliate ad results in a sale.
  8. Affiliate retention rate: The affiliate retention rate is the percentage of affiliates who stay engaged with your program.

Step 3: Choose your ad platforms

There are many ad platforms on the market today, but only a select few will be able to help you grow your affiliate program. Here are a few of the top platforms for affiliate marketing.

  1. Ad networks: Ad networks are a great option for a wide variety of products and industries. Some of the largest affiliate networks are MediaBrix, ShareASale, and Amazon.
  2. Native advertising: Native advertising is a great option for affiliate marketing campaigns that are lead generation-focused. Native advertising networks include Outbrain and Taboola.
  3. Programmatic advertising: Programmatic advertising is best used for driving brand awareness and clicks. Programmatic networks include Google AdWords, Facebook Ads, and Criteo.

Step 4: Define and write your ad copy

The ad copy is what potential customers will see when clicking on links to your affiliate products. Since a large portion of your affiliates’ earnings will come from people clicking on their links, it’s important that your ad copy is strong. Your affiliates’ ad copy will be the first interaction a potential customer has with your brand, so it’s critical that it’s compelling, memorable, and drives a strong desire-to-buy.

When defining your ad copy, keep the following in mind:

  1. It should be short and sweet: Each ad group should have one main call-to-action. You also want your ad copy to be short enough that people will click on it.
  2. It should be targeted: Always aim for a laser-focused ad group. The more targeted your ad copy is, the more clicks you’ll get.
  3. It should be eye-catching: Your ads need to stand out from the crowd. Make them as eye-catching as possible and always try to use visuals.

Step 5: Track and test your ads

Affiliate marketing is a data-driven industry, and tracking your ads and affiliates will help you to determine what works best. There are a few ways you can track and test your ads.

  1. Google Analytics: Google Analytics can help you track the performance of your ads. You can set up segments to view which ads are performing best and which ones need improvement.
  2. Click trackers: Some affiliate networks also have click trackers you can use to track your ads.
  3. Click rate: The click rate is the percentage of total ad impressions that result in a click. It’s a great metric to keep track of over time and can help you determine which ads need improvement.

Affiliate marketing won't make you rich overnight, but if you keep at it consistently and strategically grow your affiliate program, it can be a very lucrative source of passive income over time.
And as every business owner knows, the more partners you have working with you, the better.

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