Affiliate marketing can no longer be an afterthought for eCommerce brands, especially in this COVID-19 era. Affiliate marketing, which basically involves outsourcing your marketing activities to a 3rd party who earns a commission on every sale they make, is taking eCommerce by storm.
If brands want to stay ahead of the curve and remain competitive, they need to find creative ways to apply affiliate marketing.
But applying the best practices of affiliate marketing is a lot easier said than done, as there are still eCommerce merchants out there who are not aware of why they need affiliate marketing in the first place. Therefore, this article talks about the benefits of affiliate marketing and why eCommerce merchants should invest in it going into 2022.
State of Affiliate Marketing in 2022
The affiliate market today has grown massively since its upsurge in 2010. It has become one of the most popular strategies to drive sales for eCommerce brands, while at the same time, generating passive income for affiliates. Market projection estimates growth to reach about $8.2 by 2022. In 2017, the AWEN report estimated that advertisers invested $13B in affiliate marketing. The number has continually risen ever since. Advertisers and publishers stated affiliate marketing made up 81% and 85% of their annual revenue annually. Over the years, affiliate marketing has improved, with trends constantly morphing as affiliates find better and more efficient ways to advertise products.
Affiliate Marketing Trends in 2022
With the burgeoning monetary value of affiliate marketing, clearly, affiliate marketing is no longer a simple affair, and it requires eCommerce developers to keep up with the ever-changing trends. Some of which are:
The Necessity of Using Multichannel
Affiliate marketers have, over the years, learned the more the audience pull, the easier it is to gain more customers. This has created a trend of using multichannel platforms in advertising products. Channels like emails, blogs, social media are only just starting points to reach new audiences. It gives them access to a broader audience network and increases their chances of selling.
Favor on Video Content Marketing Medium
Research has shown people are more convinced to buy a product from watching a video than reading. Adding videos to marketing content helps drive affiliate sales and customers’ interest in learning about your product. With many apps on the internet today, video content is now easy to create and perfect.
Automation Tools Have Significant Impacts On Marketing
Numerous automation tools are available that help vet new affiliates, manage and track campaigns, and localize strategies. Thus, making the intricacies of marketing a lot simpler. These tools also help manage commissions and share marketing materials with relevant stakeholders.
Localization is also becoming a trend in affiliate marketing. With different audiences from various geographical locations having different needs, it is of no surprise. Consumers prefer to communicate with an affiliate (influencer or otherwise) who knows the norms, expectations, and customs of their culture and locality. Technology has given us access to different parts of the world at our fingertips. Hence, brands and affiliates can adapt their touchpoints to the cultural preferences of their target audience to boost engagement and subsequent sales.
These trends make affiliate marketing easier for affiliates, but what is in it for merchants?
The Benefit of Affiliate Marketing
1. Low Startup Cost
Affiliate marketing takes out the stress and costs of having an advertising team and running traditional advert campaigns, as the affiliate is responsible for all the efforts that involve lead generation and conversion. That way, eCommerce brands can focus on other critical aspects of the business.
2. Low Risks
The higher the investment in a business, the higher the risk. This is why affiliate marketing has become a great and economical way to market products online. The merchant spends less on advertising and only pays a commission once sales occur. It is a win-win for both parties.
3. High ROI
Marketing is key to high ROI most times. With little capital spent on marketing, the merchant gains a higher ROI on sales as all efforts are channeled through the affiliate to the right audience directly, making it easier to have a high return on investment.
4. Precision Traffic
By partnering with the right affiliates, brands can get direct access to consumers that are actually interested in their products/services. Your product gets attention and gains popularity amongst individuals who find it useful through your affiliate’s influence.
Affiliate programs are easy to scale with no capital requirement. By scaling up, brands reach more customers in different localities. It is also possible to make an affiliate program smaller after going big. It would cost no losses and be accessible.
Best Practices to Get the Best Out of Affiliate Marketing in 2022
While these benefits are easy to enjoy once you decide to implement affiliate marketing, some practices will assist you in ensuring you get these benefits out of affiliate programs.
Selecting the Best Affiliate Match
The success or failure of any affiliate program starts with the affiliates. Affiliates are your product’s image as they interact with customers directly and convince them to purchase products. Chosen affiliates should engage the target audience and influence them easily. The best way to get affiliates is by precisely targeting affiliates for recruitment.
Use Promo Codes and Coupons to Drive Sales
Discounts are the most significant drivers in online business. Giving coupons, promo codes, and discounts help drive sales for affiliates. It is one of the biggest affiliate marketing boasters. Numerous researches have shown some online shoppers specifically search for coupon codes and discounts before purchasing products online.
Explore influencer marketing
Media influencers are becoming drivers for many things on the internet. One of these is online products/ services. Using influencers, especially those with authority in your niche, helps drive sales. They may not work as well as coupon-driven sales, but they sure send a targeted audience who would spread the word by mouth to your website.
Product Page and CTA Optimization
While affiliate marketers do a great job of seeking potential customers’ attention, the merchant still ensures they purchase the product. This is by ensuring they have the best experience when using the eCommerce website. A noteworthy platform experience persuades and encourages sales and referrals. The best way to do this is by ensuring you use an efficient and fast website. eCommerce brands can also use website builders like AllValue to develop landing pages with optimized call-to-action (CTA) that drives consumer conversions.
In a world of uncertainty driven by the global pandemic, affiliate marketing is one of the viable solutions for eCommerce brands to stay ahead of their competition. But it is not enough to practice affiliate marketing. Brands must also keep with the latest trends in affiliate marketing in order to have a sustainable business, and what better way of doing so than with AllValue?
AllValue is an eCommerce platform that offers the best services when it comes to multichannel marketing and hence increases your chances of making a profit from your business.
AllValue is the brainchild of eCommerce merchant giants Youzan. They are a SaaS start-up that delivers the best eCommerce website builder solutions for individuals and companies at a reasonable cost. AllValue array of services means that brands can easily exploit the potentials of eCommerce and get their products or services to market in no time.