Affiliate marketing is making a comeback, because advertisers are realizing its benefits when it’s implemented correctly. Advertisers are making the investment in this channel because it is as effective as email, has a lower eCPM than display, and can expand their acquisition to high quality, targeted publishers. If affiliate marketing isn’t in your marketing mix yet, it’s time to jump on board. But, you have to do it the right way.
Many of my friends in the advertising world ask, “Affiliate marketing implemented correctly? What do you mean?” In a nutshell, your program can be extremely profitable if your Affiliate Manager or Affiliate Marketing Agency can manage attribution, compliance violations, analyze ROI-optimization reporting and has the existing relationships in place to increase publisher distribution. Experienced affiliate teams know to keep these in line with your overall marketing KPIs too. Otherwise, you’re not going to see the growth and profitability you want from this channel. You’ll just be shifting marketing dollars from one channel to another, without seeing the huge incremental growth affiliate marketing can bring.
About 80% of brands utilize affiliate because it’s a low risk, cost-effective marketing channel. The question is : If you only pay when a sale is made, why wouldn’t an advertiser use affiliate marketing? There is no reason not to, so long as it is managed correctly.