Scale your Digital Marketing ROAS with Affiliate Marketing: Strategies and Tips

Digital marketing is a challenging task for all businesses. Specifically, if businesses want to get the expected return on ad spend (ROAS) from digital marketing services campaigns, it will be even more difficult.

But, one of the simplest ways to scale your digital marketing ROAS is through affiliate marketing.

In this blog post, we will discuss how affiliate marketing can help you scale your digital marketing ROAS and provide tips on how to get started with it. So, let’s get started.

So, What is ROAS in Digital Marketing?

As we all know, ROAS stands for return on ad spend.

To put it simply, it is a marketing metric and it helps to measure the amount of revenue generated for every dollar you spent on advertising.

ROAS is generally considered an important metric for businesses of all sizes. But, it is especially important for businesses that rely on digital marketing to generate leads and sales.

So, if you are running a business based on digital marketing, you have to keep attention.

There are a number of ways to calculate ROAS. But, here is the most common formula that many businesses use,

ROAS = (Total Revenue / Total Advertising Spend) * 100

For example, imagine you are spending $500 on advertising and generating $1000 in revenue, your ROAS would be 200%. This means that for every dollar you spent on advertising, you generated $2 in revenue.

Always, aim for a high ROAS because it is a good thing for businesses to generate the expected revenue.

On the other hand, a low ROAS is a sign that your advertising is not as effective and that you may need to make some changes.

But, don’t worry, if your ROAS is low, then there are a number of things you can do to improve it.

Some of the most important things include:

Target your advertising correctly: First, you have to find out your target audience. Next, make sure that you are targeting your advertising who are likely to be interested in your products or services.

Create effective ad copy: Second, Keep concentrating on your ad copy should be clear, concise, and persuasive.

Use high-quality images and videos: Third, keep attention to images and videos. These can help you to capture attention and make your ads more visually appealing.

Track your results: Compare to others this step is quite important. So that you can see what is working and what is not.

If you follow the above 4 steps properly, you can improve your ROAS and get a better return on your investment in digital marketing without any doubt.

What is Good ROAS?

A good Return on Advertising Spend (ROAS) is subjective. It will vary depending on various factors such as industry, cost-per-click (CPC), business costs, and profit margins.

Normally, it is challenging to establish a definitive benchmark for ROAS. Why because it requires businesses to disclose their ad spend and revenue. And, many of the businesses are not willing to share due to competition concerns.

When it comes to determining a good ROAS, it is advisable to consider your Cost Per Acquisition (CPA) from the offers you are promoting.

Ideally, you should aim to spend less on paid media than the CPA. This is the best way to acquire a sale.

In case you are promoting offers with recurring commissions, it may be acceptable to initially have a negative ROAS. Because it can improve over time as commissions accumulate. So, choosing the right affiliate program becomes crucial in such cases.

Tips to Scale The Digital Marketing ROAS with Affiliate Marketing

Approach Qualified Affiliates

Generally, collaborating with qualified affiliates is important. This helps to enhance your affiliate marketing strategy.

So, look for affiliates who have experience and skills in carrying out complex promotional actions.

Their qualified expertise can ensure smoother integration of promotions into their content, multiple promotional posts, and more.

Instead of doing alone, it is best to work with qualified affiliates. They help to reduce the risk of spending resources on ineffective marketing efforts and yield higher-quality results.

Also, they can provide valuable recommendations based on their past experiences, further improving your overall strategy.

Start PPC Campaigns to Boost Results

While focusing on successful affiliate marketing campaigns, integrating pay-per-click (PPC) campaigns can amplify your results.

If you combine these two strategies, you can yield better outcomes through their synergistic effects.

Integrate Other Types of Marketing

If you want to further enhance your digital marketing ROAS, consider integrating other marketing types alongside affiliate marketing. This multiple approach can yield better results.

Guest Blogging: Collaborate with other websites to publish guest blog posts. This strategy helps build your website’s backlink profile. At the same time, it helps to improve your website’s search engine ranking. As your website gains prominence, your brand’s reputation also improves. Simultaneously, it enables you to attract and work with high-profile affiliates.

Social Media Marketing: Cultivating a dedicated online following can significantly benefit your business. A strong social media follower base can generate free marketing through word-of-mouth, effectively supporting your affiliate strategy.

Influencer Marketing: Influencer marketing shares similarities with affiliate marketing. But, it typically involves fixed payments to influencers for promoting your brand or products. If you leverage influencer marketing, you can easily complement your affiliate marketing campaigns effectively.

Email Marketing: Implementing email marketing allows you to maintain contact with past customers while your affiliates focus on acquiring new ones. This balanced marketing approach supports your overall strategy.

Analyze Performance and Adjust

Finally, continuously analyzing the performance of your campaigns is crucial for optimizing your digital marketing ROAS with affiliate marketing.

While the practices mentioned above are effective, their effectiveness may vary depending on your specific business.

So, regularly evaluate the impact of your efforts to identify what works best for you.

For instance, if email marketing isn’t yielding significant results for your affiliate campaigns, you may need to allocate more resources to guest blogging.

Adapt and refine your strategy based on the insights gained from performance analysis.