In this article Robert Glazer, Founder & CEO of Acceleration Partners discusses, how affiliate marketing can helpmarketers drive better conversions.
In an increasingly competitive marketing world, brands are looking for a consistent advantage to help grow their conversion rates and maximize their ROI. For decades, many leading brands have found consistently strong results with affiliate marketing.
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Affiliate marketing is a model where brands partner with bloggers, influencers, publishers or other brands to promote their products or services in exchange for commission. Because brands only have to pay for the sales or leads their partners deliver, affiliate marketing allows any brand to scale their marketing efforts without the risk of paying upfront for subpar results.
Heres how affiliate marketing drives better conversions for leading brands:
1. Building Trusted Partnerships
Marketing is most effective when theres a foundation of trust. In an effective partnership, brands collaborate closely with marketing partners to develop messaging that showcases the brands selling points while also appealing to the partners carefully cultivated audience.
Pura Vida, a leading jewelry brand, demonstrated the effect of this trust. The company worked directly with top coupon, deal and loyalty partners and maintained control over messaging to showcase their product in the best possible way- while still appealing to their affiliates audiences.
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By working directly with their partners and collaborating to create the best possible messaging, Pura Vida increased their affiliate program revenue and saved thousands in publisher commissions. And because affiliate marketing means brands only pay for the results they get, businesses like Pura Vida can scale their programs without increasing their financial risk.
Affiliate marketing drives increased conversions because brands and partners fully collaborate. Brands and partners work together in pursuit of mutually agreed upon objectives, rather than working on conflicting priorities in an opaque, unaccountable process.
2. Brand Control
Each partner relationship brings its own value to an affiliate program. A well-balanced program gives brands the opportunity to partner with a diverse set of publishers who cater to a range of audience sizes and demographics. Because affiliate marketing gives each brand control over who they partner with and what messages they present through those affiliates, businesses can ensure they are diversifying their marketing and strategically targeting customers.
When working with a partner marketing agency, brands can set clear business goals and align with partners who can best help them reach their ideal customer base. If a business wants to attract people who are close to becoming customers, they can focus on partners who are focused on bottom-of-funnel conversions. Conversely, if brands are focused on building awareness for their products and getting leads at the top of the marketing funnel, they can work with partners who are more content-focused, such as influencers, bloggers and mass media partners.
The variety and flexibility of affiliate marketing allows companies to work with the exact types of marketing partners who will best help them achieve their goals.
3. Leveraging Promotions and Products
Affiliate marketing also allows brands to maximize their promotional offerings and best-selling products by directing them at a trusting, loyal audience. Blurb made a concerted effort to add coupon site partners to their programs and give each an exclusive coupon code to track accurate conversion.
As a result, Blurb was delivering their best offerings to a wide-ranging audience that was primed to receive them, leading to a significantly higher revenue. They also had a clear understanding of which partners were driving the best results.
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Even the widest-reaching platforms like Facebook and Google can only do so much to drive sales. By working with trusted partners who have established audiences, however, brands are better positioned to allocate their marketing dollars on actions that will actually generate high-value ROI.
4. Optimizing Partner Performance
Because each marketing partners performance in an affiliate model is individually tracked and measured through affiliate technology providers, brands can make real-time evaluations to determine which partners are most effective for driving conversions. This is especially helpful for brands like ThirdLove who want to build most effective possible affiliate program without diluting their brand.
ThirdLove achieved this by learning which partners drove the best conversions and focusing their resources on working with those select few. By strategically partnering with a top coupon site, they increased their average order value and conversion ratesall while keeping their cost per acquisition low.
Affiliate marketing is efficient, flexible and, with a pay-for-performance commission framework, can scale with minimal financial risk. Leading brands around the world leverage the affiliate marketing model to build transparent, high-value partnerships. The most successful businesses work closely with partners to tailor their campaigns to receptive audiences and see their affiliate partners as an extension of their brand.