A Guide to Affiliate Marketing Tracking Methods

Affiliate marketing has evolved dramatically. The current methods of tracking are precise and highly efficient. Affiliate tracking software also evaluates performance on a large scale, making the entire process much more reliable.

An affiliate marketing partner plays a huge role in businesses building partnerships to expand their reach. It brings more sales to your store. These partners emphasize connecting companies with ideal affiliates who can promote their services on a large scale. They know how to attract the right audience.

A Bit About Affiliate Tracking

Affiliate tracking is regarded as the foundation of affiliate marketing. It makes brands monitor purchases. Tracking is important as it helps to give fair compensation to affiliates. Many businesses go with affiliate tracking software to automate tracking. It saves their time and effort.

Affiliate Marketing Tracking Methods

Strategic collaborations and B2B affiliate marketing agencies can double revenue opportunities while reducing marketing costs. A professional from an SEO marketing agency knows how to handle every aspect, allowing your business to focus on growth. In this section, we will explore the prominent affiliate marketing tracking methods.

1. Cookie Tracking

Next on the list is cookie tracking. Cookies are small pieces of data stored in a user’s browser when they visit a website. Tracking cookies allow the website to recognize and monitor the user’s online behavior, improving the site’s ability to personalize and manage the user experience.

Cookies gather information when a user clicks on an affiliate link, storing various data about the user. The lifespan of affiliate tracking cookies is typically 30 days. Interested in learning about the drawbacks of cookie tracking?

• Users may clear cache and may delete cookies before purchase. It means your tracking could be lost, and the affiliate would not receive any commission for the sale.
• Cookies are browser-dependent, making it challenging to track a customer who uses multiple browsers while shopping.

The fact cannot be ignored that cookies do play a huge role in affiliate tracking. Though they come up with limitations. It can impact the accuracy of affiliate attribution.

2. Pixel Tracking

Pixel tracking has emerged as an effective solution to affiliate tracking. By simply adding a small code snippet to specific pages, you can easily track performance and monitor user activity on your website. This method provides valuable insights into how users interact with your content.

Pixel tracking provides highly valuable insights. However, you might be curious about the potential drawbacks of this tracking method.

• Pixel tracking can be quite complicated if you lack coding knowledge. While you don’t need to be a developer, it’s essential to understand how to embed a snippet into the backend.
• Pixel tracking may face challenges in tracking conversions, particularly when cookies are not supported.
• Pixel tracking relies on last-click attribution, which may not provide a complete and accurate view of the entire customer journey.

3. Manual Tracking

Manual tracking is an effective method for allocating sales to affiliates. It is a traditional approach used to track the following aspects:

• Referrals
• Sales
• Partner commissions

Manual tracking means you wouldn’t need automated tracking software. However, it does come with certain drawbacks.

If data is not handled properly, it can result in inaccurate commission payments and may negatively impact your ability to attract ideal affiliates.

When a sale occurs, it requires cross-referencing data from the transaction platform. Automating the entire process can save a lot of time and reduce the likelihood of mistakes.

4. API Tracking

API tracking, which stands for Application Programming Interface tracking, is used to monitor affiliate marketing activities. It enables affiliates to integrate their systems and exchange data in real-time, providing accurate tracking of clicks, conversions, and commissions. This data allows for precise, data-driven decisions.

API tracking offers a seamless way to manage affiliate campaigns, making it easier to automate processes and scale with your program. However, there are some drawbacks to consider:

• API tracking depends on the compatibility and availability of APIs. Lack of consistent API support can disrupt seamless integration.
• If the API service experiences downtime, it can negatively affect tracking and impact the accuracy of the data.

5. Server-To-Server Tracking

Server-to-server (S2S) tracking is different from cookie tracking. Many people assume that both are the same, but they are indeed different. S2S tracking does not rely solely on the browser, nor does it store information in browsers.

You might be wondering, where is the data stored? It is accumulated on the tracking servers of the affiliate network. When a user clicks on an affiliate link, they are assigned a unique ID, which is sent back to the advertiser. The advertiser’s tracking system searches for matching unique IDs.

When a match is found, it indicates that a click led to a sale, allowing you to share commissions with your affiliates. Server-to-server tracking is considered a safe method, as it complies with privacy laws. However, it comes with some drawbacks:

• Data loss can occur during data exchange, leading to inaccurate tracking data, which can cause issues.
• S2S tracking requires technical expertise to set up server-side scripts, making the implementation process more complicated.
• S2S tracking may encounter compatibility issues with certain platforms. It may not work with all tracking systems and may require additional integration efforts.
• S2S tracking may have limitations regarding attribution models and tracking capabilities. It often prefers basic attribution models and may not support more advanced ones.
• S2S tracking helps reduce reliance on cookies. The attribution process is based on tracking the unique ID assigned to the user, providing a more reliable method for attributing commissions.

Apart from the aforementioned methods, there are various other affiliate tracking methods, including:

• Consent-less Tracking
• Third-party Cookies
• Impression Tracking
• Lifetime Commissions
• Offline Tracking
• Action Tracking
• Per Product Tracking

How To Start With Affiliate Marketing

If you're considering affiliate marketing and how it works, here’s a detailed overview to get started:

• Select an ideal affiliate marketing network
• Set up your affiliate program
• Generate tracking links or codes
• Implement tracking on your website
• Monitor the performance
• Lastly, optimize your program