Brands are uncertain about the future of their business due to COVID-19’s unpredictable effects. This has kept marketing teams on their feet as they manage budgets. Marketers are more aware than ever of the importance of every dollar spent on advertising, and they expect to see positive results in an unpredictable economy.
The solution to getting a return on your investment is now. Affiliate marketing is a channel that provides a guaranteed profit at scale.
Forbes reports that affiliate marketing is widely used today. 81% of brands, 84% of publishers, and a 10% increase in spending per year are expected. Affiliate marketing has evolved from the traditional last-click model with its scammy coupon sites. Affiliate marketing is a mutually beneficial partnership where brands pay only based on the results they drive: often, a commission after a desired action such as a sale or lead. It is a low-risk model with high rewards.
Leveraging Affiliates to lower customer acquisition costs
Affiliate marketing is a performance-based channel that will lower your customer acquisition costs. Each day, a brand is trying to rise above the noise of marketing and become the next big hit, such as the Sony TV or Nike running shoes. The cost of acquiring customers with a long lifetime value and who are loyal to a brand is increasing by the minute. It is important to invest in different paid channels to ensure a varied online revenue stream. However, it is becoming increasingly difficult to achieve a Return on Adspend, or ROAS.
If you partner with qualified affiliate publishers, an affiliate channel can be a full-funnel channel that reaches customers at all stages of their buying journey.
Qualified Affiliates: Adding them to Your Marketing Mix
Say goodbye to the fraudulent coupon sites of affiliate marketing’s early days and say hello to a lucrative channel that rewards performance. Now, brands can reach consumers in every part of the funnel, from top-of-funnel acquisition through media publishers with high traffic to lower-funnel coupon affiliates who convert well. Bonnie D’Amico is the Senior Affiliate Manager for Shopify. She says that Affiliate Marketing is no longer the stuff of black hats and scams. As an example, partnerships that were previously dependent on native ads and sponsored content can now be achieved through a performance payment model, allowing you to achieve the high ROI that you are likely seeking.
Take Buzzfeed as an example. This is a popular media publisher that shares DIY hacks and trending news. Tapafiliate reported that Buzzfeed generated more than $425M of affiliate transactions directly attributable. Even publishers are now turning to affiliate marketing as a reliable revenue source. Buzzfeed’s commerce marketing is a huge improvement over the days of expensive direct purchases and sponsored content. Brands can now benefit from BuzzFeed without having to spend tens or thousands of dollars to secure a place and hoping that they will get a positive ROI.
How To Start Scaling ROAS
Affiliate marketing allows brands to only pay when the desired result occurs, like a qualified lead or a sale. Return on Adspend potential is unlimited, with many brands seeing an 8-15X increase in return when they have the right affiliate partners and strategy.
Platform setup and finding the right partners can be challenging, as affiliate tracking technology is constantly evolving. The key is to launch the platform and include as many vetted partners as you can.
