The Affiliate NetworkAffiliate Network
As Affiliate Networks Have Taken Affiliate Marketing Mainstream
Being in the online industry often means learning the details of A/B test, on page customization and KPI monitor. This is not a concern for our customers - at least not when it comes to online merchandising, which they are paying agents for. "Affiliate marketers keep coming back to me.
" Considering the dramatically increasing affiliate spending - a Forrester Consulting survey estimated an average of 10% year on year increase until 2020 - it is not surprising that individuals are noticed. It now accounts for 16% of e-commerce revenue, on a level with mail merchandising and ahead of eCommerce, which drives eCommerce deals.
Formerly only known as the preferred trading channel for doubtful dietary supplement products, affiliate merchandising has now been introduced into the market. Affiliate networking has made affiliate programmes more accessible and accepted. Given that these ecosystems are continuing to create value for both publisher and advertiser, we can only anticipate that affiliate branding will remain a major part of our campaign (and budget).
Understanding what drives affiliate network operators and advertisers, and what could drive them to take on larger parts in each other's stores in 2017 and beyond, will require us to first look at how the parts match. The advertiser in this connection is exactly what he sounds like: a company or brand that wants to attract attention with its product or service with the aim of boosting turnover.
Consumer expectation of relevance and appeal are higher than ever. Marketers were under increasing pressures to create and deploy this native experience while delivering a convincing ROI experience. A publisher is an individual with a website, blog or other on-line medium that is hired by an advertiser to advertise its product for a royalty.
Traditionally, a publisher already controls the contents and audiences interested in an advertiser, making its on-line platform a precious asset for the advertiser. Empowering the publisher to monetise their revenue, the advertiser creates a win-win situation for both sides. Today, more and more publishing houses are making use of these partner options.
Affiliate fees are now the most rapidly increasing revenue stream for publishing companies, accounting for 15% of their revenue, according to Business Insider. In view of the previously emphasized good forecasts for affiliate investments by advertising companies, there is still a long career ahead for further expansion. Affiliate networking basically functions as a marketplace where marketers gain entry to large publisher pool and conversely.
Publishers can increase the value of interaction between advertisers and publishers by aggregate subscribers, streamline process, and manage the payments and reports associated with ever more sophisticated partner relations. These efficiency gains have significantly boosted the acceptance of affiliate partners, which characterize today's online market. Looking at affiliate network, the long-standing sector names such as Rakuten, CJ Affiliate and ShareASale come to the fore.
Apart from the economies of scale provided by more incumbent brands (longer success stories usually mean a bigger pooled of recruiters to select from or recruiting publishers), we have seen that the family tree matters very little when a network is rated by prospective members.
Forrester Consulting confirmed our expertise with a poll that found that the experiences of a network with its specific verticals or products categories and its global reach were among the most important factors used by marketers to select an affiliate network. In return, the cost of network operation was also shown.
Similarly, the interviewees said that "how globally the network was" had a role to play in their decision-making processes. Decisive elements mentioned were also the "depth of tooling provided by the network for measuring and publishing" and the existence of competition. Given these predilections, we anticipate that in the future, incumbent affiliate network innovation will be on the defense, as affiliate network innovation will give way to the advent of competition from around the world.
Global networking is able to draw global brand names, which in turn attracts a large fan base of publishing houses. The network effect enables them to issue shares in overseas countries more quickly than they would otherwise be able to. Admitad, one of the biggest affiliate network in Europe, has recently achieved results with this strategic approach.
The network, which was started in 2010 and is headquartered in Germany, is already represented in seven different nations, another in Poland and another in China is to be opened by the end of the year. This network has used its worldwide reach to enter into unique partnership agreements with international recognised brand names, driving it to six successive cycles with sales growing over 100% over the previous year.
Our business is truly representing the kind of truly globally network that we anticipate to become a well-known name in affiliate channel management over the next few years. Ambitious expansive schedules such as admitad's should help drive further affiliate market development and drive further affiliate market development and innovations. It has become an essential advertising tools for marketers.
We therefore anticipate that affiliate branding will remain a key element of our corporate branding campaign for organizations of all shapes and sizes. For this reason, we believe that affiliate branding will remain a key element of our corporate strategy. With other words, it is important that business at least become aware of the opportunities they have when it comes to affiliate promotion. It' certainly gone a long way from its modest beginnings, but it's here to stay and for that we have affiliate networking to thank.