Why is Affiliate Marketing the current marketing trend for advertisers?
The digital world has been seen tremendous changes in technologies, networking, advertisers and publishers. They have all advanced at such a high pace that traditional and digital channels have converged. Digital marketing is a new challenging world for business where old tactics used may not come in as useful anymore.
Affiliate marketing has been a long-standing revenue model on the web. It has been around for many years but it has recently started as a way to compensate referrers who are sending business through to various types of websites. With Affiliate Marketing, advertisers are promoted by publishers. These publishers, or affiliates, host websites or other media that send relevant traffic to an advertiser. Gone are the days where blogs were glorified online diaries. It has evolved to significant online sources of valuable content with increasingly large readerships. The larger the readership, the greater the business opportunity.
This creates a huge impact that big business such as Apple, Radissons Hotel, Reebok, GoDaddy and many more are beginning to adopt their own affiliate marketing strategies. Hence launching an affiliate program can be a great idea to increase your traffic and revenue through a multitude of sources.
With saying that, there are many more reasons as to why Affiliate Marketing is the current marketing trend for advertisers.
Affiliate marketing is a result driven business. Affiliates are paid a commission only when the product or service is purchased. This motivates affiliates to provide value to their audience to drive sales. Hence the costs for advertisers is cheaper because it is based on commissions and performance of the publishers.
Reach your target audience.
Affiliate marketing allows publishers to partner with brands to promote their products and services while earning commission for every transaction they influence. Whether your product is high-end retail or financial services, hotels or entertainment, there are thousands of active affiliates covering a diverse range of sectors. Affiliate marketing allow publishers to grow their brands reach locally or globally by connecting their brand with their next customer through affiliates.
An advertiser can find an affiliate with good online content, followers and similar interest to their brand. This is because a well maintained website with quality content targeting can provide significant value and lead generation opportunities. In addition, affiliate marketing results in more effective campaigns. This is done by tailoring the marketing to a specific audience demographics, gender, location, age and interest. Hence with affiliate marketing, the advertisers can source for an affiliate with good online content, followers and similar interest as your brand.
Scalability with technology
Affiliate marketing can be easily scalable depending on the product and the use of technological tools. Through sales of some products promoted by the affiliates, the customer’s lifetime value can be 10 tens more than the initial commission given out to the affiliate. Secondly, the success of the promotions and affiliates can be analysed and tracked using tools such as Google Analytics. This can help you by decided on investing more in the most profitable campaigns and cutting back on the least profitable ones.
In conclusion, affiliate marketing continues to thrive and enable advertisers to re-engage and re-targeting. We expect 2018 to be a year full of changes as the industry gets more strategic in marketing efforts to grow ones brand.