Ambika Sharma, Pulp Strategy talks about Affiliate Marketing 101 – the definition, the need, the trends, and the tips.
One of those pieces in digital that are growing in importance as the cookie crumbles. All of us, for once in our lives, have thought of making money while we sleep. If you’ve done your research on this, you probably have come across the term Affiliate Marketing. It has been in existence from the early days of the internet, but the continuously evolving digital landscape has brought it to the forefront today. According to statistics, over 80% of brands around the globe have affiliate marketing programs in place and today we understand the basics of the concept with Affiliate Marketing 101.
Whether you are a publication house or an independent blogger, affiliate marketing strategies can help you get more online revenue. Well-developed campaigns can help you make more money and push your business towards a positive growth trajectory.
Affiliate Marketing 101
According to Business Insider, 15% of the digital media industry’s revenue comes from affiliate marketing. It is a type of performance-based marketing in which a business rewards one or more affiliates for each visitor or customer brought by the affiliate’s marketing efforts. While there are numerous affiliate programs out there, many brands shy away from this channel because they aren’t sure how it works or whether it’s worth the effort.
However, affiliate marketing can be an extremely effective way to reach new customers and grow your business. Here are my four reasons –
- Affiliate marketing is a cost-effective way to acquire new customers
- It can help you reach new audiences that you might not otherwise be able to reach
- Affiliate marketing can be used to supplement other marketing channels, such as email marketing or paid advertising
- Affiliate marketing can provide you with valuable insights into your customers and their buying habits.
Livestream Shopping will Become more Popular
In recent months, shopping through livestreams has gained immense prominence. Popular social media platforms like Instagram, Facebook and Pinterest have already been running livestreams with popular influencers and brand advocates to make the most out of these affiliates. With consumers interacting with these creators live and providing their inputs and feedback on the go, the shopping experience is becoming more and more dynamic. With this continuous evolution of platforms, you can expect brands to jump on affiliate marketing programs to garner more eyeballs and increase brand ROI.
AI Will Drive Further Efficiency
There are many ways in which AI can bring efficiency to your affiliate marketing efforts. One of the biggest benefits of incorporating this technology into a campaign is that it allows marketers to better target their audience. For instance, if your company sells health products online, an AI system could analyse customer data and create targeted ads based on interests and purchase history. This will result in more relevant ads, which will lead to higher conversion rates for your business.
Another benefit of using AI in affiliate marketing is that it allows for more effective predictive modelling. This means that you can gain insight into how customers will respond to different products and services, which can help with your product development efforts.
Co-Marketing Partnerships Will Take Efforts To New Heights
Co-marketing partnerships are arrangements between two or more brands to promote each other’s products or services. This can be done in several ways, such as through joint promotions, cross-promotions, or even simply by sharing content. There are many benefits to co-marketing partnerships. For one, they can help you reach a wider audience than you could on your own. Additionally, they can help build trust and credibility with your target audience, as they see your brand working closely with reputable brands.
Of course, like any marketing strategy, co-marketing partnerships are not a guaranteed success for every business. To be successful, you need to identify the right partners and have a clear understanding of what each party will bring to the table. With the right strategy and execution, though, co-marketing partnerships can help take your affiliate marketing efforts to new heights.
Influencers Will Act As Brand Advocates
The pandemic has had an impact on almost all types of businesses, especially small and mid-sized companies. It forced these companies to move online to grow their business. While such businesses may not have huge affiliate marketing budgets, they still want to implement this strategy to stay afloat. This is where micro and nano influencers come into the picture. They are perfect to collaborate with, helping you with more brand exposure and reaching a wider audience online, all without burning a hole in your pocket.
Marketers Will Depend on First-Party Cookies For Data
Google, just like Apple, is all set to phase out third-party cookies in its browser by the end of this year. Once these are phased out, Google plans to roll out its Privacy Sandbox initiative, making user data anonymous. So, instead of collected cookies, the user data will be retrieved from anonymous signals to reveal a user’s online browsing patterns. How will this impact affiliate marketing? Marketers will now be able to tailor affiliate campaigns so they rely only on data from first-party publishers. With such a system, you will be able to deliver purchase opportunities in trusted environments. The key to building these types of affiliate marketing campaigns will depend entirely on authenticity.
The Scope In India
The Indian market has been steadily growing for the last five years, and it is expected to have a very bright future ahead. The growing demand of consumers is making it a great market within India, as well as around the globe. Affiliate marketing offers low risk and a higher chance of getting rewards than any other market in the country. Since the competition is low, it is beneficial for affiliates as well as brands to hone their skills in the field and earn a considerable amount of money in the future.
To conclude, affiliate marketing is growing in popularity all over the world, and India is no exception. Affiliate marketing may be the perfect fit for your business because of the unique cultural landscape and buying habits of Indian consumers. It can be a powerful tool for you to expand your reach and sell more products and services. By understanding the culture and buying habits, businesses can create an effective affiliate marketing campaign that will help them gain recognition and drive brand ROI.
This article on Affiliate Marketing 101 is penned by Ambika Sharma, Founder & MD, Pulp Strategy.