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Affiliate marketing: what would you be able to do with it?
Affiliate marketing has matured and can no longer be put aside as a side job of some pushers to bring customers to conversion. Affiliate marketers are the most important trends where you as a brand and webshop can benefit from.
The main reason why the expenses for affiliate marketing is growing with 10% annually is that companies are struggling to stand out in the flood of information. US e-commerce market will reach 500 billion dollars by 2020. Affiliate marketing accounts for $ 70 billion of that sales revenue. In other words, 14 percent is realized with the help of affiliate programs. That is as much as e-mail marketing and more than social commerce and display advertising. And then we are not talking yet about the global e-commerce market. Which is much bigger.
What development is the affiliate market experiencing and what do you have as a publisher and advertiser? We see the following four important patterns:
- Finding the right match is more complicated
The growth of the affiliate channel also means that the complexity increases. Advertisers are looking for interesting publishers and vice versa. The nature of the digital media landscape means that not only traditional publishers but everyone with a social media account can be interesting for advertisers.Influencer marketing is becoming an increasingly important part of affiliate programs. Logically too – we take on more from family and friends than from commercial brands and influencers who appeal to us fall emotionally under the name of friends.On the other hand, publishers who are relatively unknown in this branch are looking for advertisers. The affiliate network manages this complexity for both parties.
- Goal: not just performance
Customers are quite willing to listen to marketing messages, but they must be relevant and interesting. Such content is not only suitable for conversion, but also for awareness and customer engagement. We see an increasing willingness on the part of advertisers to budget for affiliate marketing that is focused on branding, whether or not in combination with performance objectives. The publisher mix and reward models have been or will be adjusted accordingly.
- Multiple channel attribution
One of the biggest changes is that the last-click attribution is enriched with a cookie, with adding a cookie on the customer’s computer. That is very helpful to the advertisers and publishers goal. Publishers are rewarded on that basis. And this allows advertisers to use their budget much more focused and they do not overlook any links in the customer journey.
- Multiple device tracking
The same applies as for the multiple channel attribution: you want to know as an advertiser which devices play a role in the customer experience so that the budget is spent correctly. Conversely, if the publisher is rewarded because of the multiple device analysis, for example, determines that the customer has made the purchase decision via his app or mobile website, they will make more effort to promote the advertiser there.
- Finding the right match is more complicated
Affiliate marketing, does it work?
There are a number of situations where you could consider the affiliate marketing channel. Whether you have an online company and want to advertise and want more sales, or you don’t have a company but you want to earn as a publisher online. In both cases, affiliate marketing is a very interesting concept.
For companies/ advertisers
It is useful to realize that if you are just starting out with affiliate marketing, you have to start up the program broadly. Data is needed to see what works and what does not work. Once you have more insight into your performance, you can optimize your program. But the wheel is already invented, there are a great number of affiliate networks with fully optimized programs. What helps with this is when you work with an affiliate network that provides benchmarks for your sector or product category.
But that is not the only criterion for companies looking for an affiliate network. Important other selection factors are the experience of the network with their sector or product category, the service provided by the network and the network platform on which the programs run. At least as important is the extent to which the network is internationally active so that growth in new countries is made easy.
Networks also provide a tracking and financial program, so, companies are relieved from the payment and tracking stress.
For publishers/ affiliates
Publishers look at different factors, of which the most important are:
- Which competitors of the web shops are already represented on the network?
- With which brands they are connected?
- How international is the network?
- Which percentage is paid?
- What is the promotion material they provide?
The system encourages and coordinate joint efforts amongst advertisers and publishers and has the tools with sufficient possibilities with which goal of a reasonable profit can be reached for both parties.
The publisher is looking which companies are represented in an affiliate network and can easily combine to advertise for different companies which are connected to the same affiliate network, and the publisher/ affiliate can track their accomplishments easily at one overview chart.
Affiliate networks are bringing the companies and advertisers together in the most convenient way. The networks provide banners, deep links, and text links. They also provide coupons or special deal banners. They release companies from the hassle of the administration. And they help affiliates to the most convenient advertising campaigns. They are also responsible for the pay-outs.
Companies and affiliates
Can do business with networks as TradeTracker, TradeDoubler, Zanox, CJ, ShareASale etc. Companies like Amazon and Bol.com have their own partner programs.
Why would you step into the world of affiliate marketing? That’s simply because the online sales are growing exceptionally and you can easily, with the correct programs, earn an additional income online. And when you put in some effort, you can even earn a fulltime income.
Take advantage of our expertise and learn in the next months how you can get a piece of this enormous pie. You can join for free, no credit card needed. You can take a look at our platform, all training we offer, and our community. This is a totally risk-free invitation.
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