Ad clicks are an important marketing metric that measures the website traffic from a digital ad to the advertiser's website. An ad click measures user interest in that ad and the advertiser's product, with the end goal being conversion through either a sale or lead.
In general, the higher the ad clicks, the more successful the ad. Affiliate marketing, paid search and display ad campaigns rely heavily on ad clicks as a metric to determine if the program was a success. Some related terms are cost per click (CPC), which is the total cost the advertiser pays per user clickthrough.
Example: The banner display ads yielded a total of nearly 600 ad clicks to the advertiser's website over the course of the campaign, with an 8% conversion rate.
Affiliate tracking is technology used to track the traffic, referrals, and/or sales that come through a specific partner. The purpose of affiliate tracking is so that a company knows which affiliates drive favorable business outcomes (in other words, attribution), and can reward these individuals accordingly. UTM links are the most common mechanism for affiliate tracking.
Affiliate tracking can also be achieved using promo codes. For example, if an influencer can offer his or her audience 10% off a 1-year software subscription with the promo code PERCY10, this allows the company to track precisely how many sales Percy drives. This then enables the company to determine which partnerships are most lucrative and invest in building these relationships and enabling them to do their best work.
Example: Through affiliate tracking, Partner Marketing Manager Lisa identified five partners who were driving 60% of PekoeCorp’s partner-sourced sales each year. She decided to send them each a gift basket of PekoeCorp swag, fancy chocolates, and red wine.
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Average deal size is a metric used by SaaS companies that represents the average amount of money that customers spend on a solution. Another way to explain it is the average amount of money a business makes per deal they close.
Average deal size can be calculated by taking the total revenue earned in a given period and dividing it by the number of closed-won opportunities during that timeframe. ACV is often calculated on a monthly or quarterly basis and used as a key performance indicator (KPI) for the business. Average deal size can be a helpful metric to use when evaluating the performance of sales teams, and it can also be used to determine the price points that are most likely to see leads convert.
Example: Luca's company closed three deals in the last month, worth $5,200, $6,700, and $7,000, respectively. He added the value of each deal up to a total of $18,900, which he divided by three to find an average deal size of $6,300.
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