Over the years, affiliate marketing has grown and is seen as an essential channel within your digital media mix.
16% of digital media industry’s revenue comes from affiliate marketing.
In the US, affiliate marketing is expected to reach 8.3 billion dollars by 2022. Although the affiliate marketing industry is strong in the US, we are also seeing growth within the Canadian market.
But, what is affiliate marketing?
Affiliate marketing is a contract between a merchant (client) that wants to sell their product and a marketer (publisher) who wants to promote that product, while getting a commission for their sales.
For example, an e-commerce brand seeks out partnerships through an affiliate program. The brand partners with Rakuten, a website that provides cashback to consumers that shop one of the 750+ brands they are affiliated with. The consumer clicks the unique link provided by Rakuten and buys a product on the brand’s website. Rakuten gets a commission on the sale, the consumer is happy to get a discount on its purchase and the brand grows its consumer base. It’s a win-win-win.
How does affiliate marketing play into inflation & consumer decisions?
With the rising prices and inflation, 50% of consumers are searching more aggressively for promos in order to stretch their dollars.
Moreover, “millennial parents say receiving a coupon or discount would speed up their purchase decision”.
Coupons are not seen as devaluing the brand, but instead empowering the consumer and offering them value for a quality product or service.
This is a great tactic when done for:
- Net new customers in order to push them to purchase and introduce them to your brand
- Existing customers as a reward for loyalty
What can affiliate marketing do for your business?
Long gone are the days where affiliate marketing was seen as a coupon-only tactic, but now a stand-alone pillar in digital media with multiple different tactics.
At Bloom, we implement a full-funnel approach in order to achieve maximum results:
Create Brand Awareness
With affiliate marketing, you can drive awareness with relevant traffic through content sites such as blogs.
Target review sites for audiences researching your product or service. It’s a great opportunity to show up next to your competitors and show your unique selling points.
Why invest in affiliate marketing?
There are many reasons why e-commerce and lead generation brands might want to add affiliate marketing to their arsenal of digital marketing tactics.
1. You’ll generate qualified traffic and leads
Through review websites when the consumer is in the research phase. It’s a great way to be present when your customers are actively in-market for your product.
2. It’s a low-risk way to grow brand awareness
By associating your brand with reputable top sites visited by millions of people, you’ll grow brand awareness (and only pay when users convert!)
3. It’s a strong revenue driver
Because most commission models are pay-per-purchaser, you’ll only pay your partner when a sale is made instead of paying per click.
4. It’s good for testing out different promos
Test different promotional structures and discounts to see what resonates the most with your audience, and apply your findings to the rest of your digital marketing tactics.
5. You can penetrate new marketing with minimized risks
Test new markets with affiliation through a pay per commission model rather than impression or click-based, you’ll therefore reduce risks and initial investment.
Looking for a partner to help you build a strong affiliate marketing program? Ask us for a custom proposal today!
Read it first:
Get new articles delivered to your inbox