The Value of Affiliate Marketing

Apr 18, 2017 | Affiliate Marketing

Affiliate marketing = more customers and more revenue!

Value of Affiliate Marketing

All marketers ask the question about how to make their brands more profitable in 2017. Affiliate marketing is the answer! Studies are showing that affiliate marketing is creating more revenue, more often, from more customers.

CJ Affiliate by Conversant recently completed a detailed study of more than 30 brands and 564 Million transactions to equate how affiliate sales compared with other aggregated marketing channels. What they found was that affiliate shoppers generate higher revenue both on and offline (CJ Blog).

Consumers that made their first purchase with a brand through an affiliate in 2016 resulted in a 21% higher average order value and 58% higher average customer revenue. These new customers came in at a rate 7% higher than other channels and began showing their value within the first year with a 19% higher rate of orders.

High profile affiliate companies that were purchased over the last few years is just another telling sign of how strong the affiliate marketplace is. The purchases may not receive as much press as when Facebook buys a new application, but those who are plugged in to affiliates know that there are multiple purchases turning heads in the marketing world:

  • RetailMeNot: $630 Million purchase announced by Harland Clarke Holding on April 10, 2017
  • Ebates: $1 Billion purchase by Rakuten in 2014

While the affiliate marketspace is growing, so is the competition. A study released in 2016 indicates that over 80% of advertisers ran an affiliate program. The majority of those advertisers devoted more than 10% of their marketing budget to the affiliate channel (Forrester report).

Just entering the market doesn’t spell success, but it does spell e-f-f-o-r-t. With the understanding that there is high revenue to be made in a competitive environment, advertisers must put in the effort to run their affiliate program effectively. Contact Informatics today for more information about how you can effectively harness this marketing channel.