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I recently attended a dinner on what affiliate advertising stands to get in 2015, and they had different views and opinions. This emphasized the lines have blurred between what affiliate marketers have responsibility to get in the advertising and electronic landscape versus screen, email, search, social, and so forth.
Find it challenging to really have a consensus about what it actually means. When we as the industry leaders are confused, then so is everybody else. Here is my two cents on what I believe affiliate marketing means in today’s digital world.
It’s important to look back to 1994 when the affiliate marketing station was born, to understand where we are today. Distinction and the USP for the affiliate channel in these days was that it had been remunerated on sales. Commission was paid to the affiliate if a sale was made, which makes it a risk free channel for advertisers. In the first days, this was particularly valuable for advertisers since they can rely on affiliates to take a seat inside the Search Engine Results Pages (SERPs) on their benefit, allowing the affiliate to take the probability of conversion.
This made a group of talented affiliates whose chief aim securing a purchase and was converting clients. The affiliate channel diversified beyond just search, into display, articles, market interest, cost comparison and eventually cashback / voucher and reward, through which we now see a large proportion of spend running (57% in line with the latest IAB OPM study).
Today, affiliate marketers remain the conversion pros and the majority of affiliate activity is compensated for on a cost per purchase basis, i.e. only when a sale is made. This Pay-per-Sale (PPS) payment model is still a exceptional region of the affiliate station, but now it’s to evolve beyond that. The model lends itself favourably to the conclusion of funnel converters — cashback, voucher but less so to the hundreds and tens of thousands of affiliates who drive customers and quality visitors higher up the funnel. That’s not to mention the amount because they’re overwritten from the advertiser brand research, retargeting or email activity.
What does the affiliate channel look like in 2015?
So what does the affiliate channel look like now? If it’s not just about PPS and what will it look like in the long run?
Think for a microcosm of the digital landscape. Inside the affiliate neighborhood, you can find all aspects of marketing, from hunt, SEO, societal and email, to exhibit, content marketing and promotions. Why if you operate in the affiliate channel and not go direct to those channels?
The affiliate station provides an varied and exclusive reach to you that you can’t access via other areas and allows you to test in a risk method. The majority of affiliate sales result from benefit cashback and price comparison channels advertisers also have access to thousands of content websites which are inaccessible via any other channel. Accounting for 50% of the channel concerning variety of affiliates those articles and bloggers websites are what create the station exceptional. We can match an advertiser and automate one-to-many connections as well as nurture and encourage relationships with the affiliate partners. Would you name another advertising channel with the capability?
Along with handling and linking advertisers with tens of thousands of affiliates, the affiliate station also provides a wide selection of innovative technology in data feeds, comprehensive tracking and attribution technologies, a range of tools for affiliates to use to help convert customers, mobile monitoring, cross-device monitoring, content, and sampling…I could go on and on.
Finally, the final component needed in defining the station lies inside the affiliate networks. Networks are a platform for both affiliates and advertisers that allow management, coordination and the functioning of a affiliate programme. For advertisers this means a programme which reaches thousands of affiliates who market their brand they are attempting to engage with. The networks provide technologies and the resources to execute a large number of campaigns across a affiliate foundation.
In addition to this, affiliate programs supply an account managed service that is delivered by a group of specialist consultants in the station, from either an advertiser shipping, affiliate management and recruiting, or a technology standpoint, and more often than not, all three.
What does the affiliate channel look like past 2015?
It’s worth covering the near future of affiliate marketing. The station has been around for 20 years and continues to grow and develop year-on-year. As it’s a channel that adjusts wanting to innovate and progress it has stood the test of time.
With technology players such as Criteo, VE Interactive and SaleCycle all dipping their feet in the water through the affiliate channel the channel has been and will continue to become an incubator for new technology. We can expect to see techniques appearing within the channel as it evolves and continues to drive efficiencies for advertisers. The channel will continue to entice affiliates that are exciting and new to work with and explore new ways to support advertisers in their marketing strategies. The payment model will likely be mostly about PPS, last click attribution, but that I anticipate the station to also develop additional attribution and payment models like Cost-per-Click (CPC) and Cost-per-Mile (CPM), aligning with other marketing areas.
Affiliates are driving visitors up the consumer journey and can, and will be effective in gaining customers through all their digital and offline channels.
