Affiliate marketing is maturing into a multidimensional, full-funnel channel. But not everyone is convinced of that possibility, says Alexandra Forsch, president of Awin Americas. For senior decision makers, affiliate marketing is “considered a very tactical channel and not a strategic channel, so it's not as appealing,” Forsch said in an episode of his podcast “Behind the Numbers”.
Despite the “nagging perception”, our analyst Max Willens agrees, affiliate marketing has been liberated from last-click limitations and has become a versatile tool for brand engagement across the customer journey. says. That's thanks to our integrations with retail media, influencers and technology partners.
Power of 2: With the rise of retail media, affiliate marketing is evolving.
- Brand-to-brand partnerships facilitated through affiliate channels are democratizing the sector, giving smaller brands opportunities for targeted reach and new revenue streams.
- “new [brand] Partners can drive value and reach customers in areas that brands cannot reach. [be able to] arrival [them]Do it in a way that is surrounded by user affinity,” Forsch said.
Creator's role: Consumers turn to influencers and review sites for product discovery, research, and consideration, especially when they are cautious about discretionary spending.
- Instead of flat fees based on an influencer's following, Forsch sees a shift to a performance-based model.
- Using a data-driven approach, “you can actually do the work. [influencers] We find that we support transactions and then we compensate them [cost-per-action] There is evidence,” Forsch said.
- According to Mavrck, 56% of creators in the US will receive income from affiliate partnerships in 2023. In 2021, it was 47%.
Technical solution: Innovations in affiliate marketing have opened up more opportunities to convert shoppers into buyers.
- Technology partners offer on-site optimization services, personalized product recommendations and couponing, and enhanced customer experience.
- Trial options allow brands to become more familiar with new technology and ease the adoption curve.
Listen to the entire episode.
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