Affiliate MArketing 101

What is Performance Marketing ?

Performance marketing is a type of digital marketing.
where advertisers pay publishers (such as websites or influencers) for specific actions taken by users.
Such as making a purchase or filling out a form.
This is in contrast to traditional advertising models, where advertisers pay for impressions or clicks regardless of whether the ad results in a conversion.
Performance marketing can take the form of affiliate marketing, pay-per-click advertising, and cost-per-action advertising.

How to Attribute a certain action to a user or affiliate ?

There are several ways to attribute a specific action to a user or affiliate in performance marketing:

  1. For Attribution and performance we use Affiliate links.
    We give the affiliate a unique link to promote a product or service.
    When a user clicks on the link and completes a specific action (such as making a purchase), We credit the affiliate with the conversion.
  2. We know that Cookies are a small text file, that we call a cookie, and we place on the user’s device when they click on an affiliate link.
    The cookie tracks the user’s activity and attributes any subsequent conversions to the appropriate affiliate.
  3. We use Tracking pixels usually an image file, We call that a tracking pixel.
    we place it on the advertiser’s website.
    Then we activate the tracking pixel when a user visits the website and completes a specific action.
    This allows the advertiser to attribute the conversion to the appropriate affiliate.
  4. Sub-ID tracking: It is a method of tracking the performance of individual pages or keywords within an affiliate link. This allows the advertiser to attribute the conversion to the specific page or keyword that the user clicked on.
  5. Postback URL: It is a way to notify the advertiser of a conversion. When a conversion occurs, the advertiser’s server sends a request to the publisher’s server, providing information about the conversion, such as the affiliate ID, conversion value, and transaction ID.

By using one of these methods, you can attribute a specific action to a user or affiliate and track the performance of your performance marketing campaigns.

Are Cookies a thing of the past ?

Like many other was I using Cookies as a method of tracking user activity and attributing conversions in performance marketing for many years, but their use has come under scrutiny in recent times due to privacy concerns. As a result, there are now stricter regulations in place regarding the use of cookies, such as the General Data Protection Regulation (GDPR) in the European Union and the California Consumer Privacy Act (CCPA) in California.

As a result of these regulations, many browsers have started blocking third-party cookies by default, which can make it more difficult to track user activity and attribute conversions.

However, we need to remember that cookies are not entirely a thing of the past as we are still using them & by many companies and advertisers, it’s just that they have to comply with the regulations and be more transparent with users about the use of cookies.

Also, there are some alternatives methods to track user activity and attribute conversions such as :

  • We use Device Fingerprintinging in order to get information about the user’s device.
    Such as what browser type and version the user use
    WE create that fingerprint by looking at things like : What is the IP address, and screen resolution,
    That is how we create a unique “fingerprint” that we use to track the user’s activity.
  • Server-side tracking: It tracks user activity on the advertiser’s server rather than on the user’s device, which can be useful for advertisers who want to avoid using cookies.

It’s always good to keep in mind that you should always comply with the laws and regulations regarding the use of tracking methods.

Can you track SDK’s or the User device

Yes, it is possible to track user activity and attribute conversions using SDKs or the user’s device.

  1. SDKs (Software Development Kits) : SDKs are a set of tools that can be integrated into a mobile app to track user activity and attribute conversions. For example, an advertiser can use an SDK to track when a user opens the app, when they complete a specific action (such as making a purchase), and when they close the app. This information can be used to attribute the conversion to the appropriate affiliate or user.
  2. Device tracking: Advertisers can use device-specific information, such as the device’s unique ID (IMEI, IDFA, Advertising ID) to track user activity and attribute conversions. This method is commonly used in mobile app advertising and can be used to track user activity across multiple apps and devices.

Keep in mind that these methods also are subject to the same regulations and laws, like the GDPR and CCPA. So, you should be transparent and get the user’s consent before collecting any personal data and make sure that your SDKs or device tracking methods comply with the regulations and laws.

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