In affiliate marketing there are two players that are trying to reach online audiences: the publishers that are trying to attract audiences to use the resources their site offers and the advertisers trying to funnel online audiences to their site to purchase their products and services. This performance-based marketing model can be quite profitable for both players. The foundational research performed by Forrester Research, found that:
- Nearly 90% of advertisers said that affiliate programs were important or very important to their overall marketing strategy.
- Affiliate partnerships drove more than 20% of annual revenue for the majority of publishers (B2C).
There are several misconceptions from both perspectives that may prevent companies and entrepreneurs from entering the market. If you are contemplating affiliate marketing as part of your online strategies, bust through the myths and reap the benefits of affiliates!
Myth 1: Affiliate Marketing is just a bunch of coupon sites
Publisher: Coupon sites make up one type of affiliate publisher that have a large online presence and recognition, but affiliates come in all shapes and sizes. To find out more about the types of publishers, check out our blog.
Advertiser: Large coupon sites can be profitable to your program when managed well, but you should be familiar with how different publishers operate and diversify your program. You may be surprised to find that a niche content or blogging site may have great success in pulling in audiences unfamiliar with your brand.
Myth 2: There is no brand control in Affiliate Marketing
Publisher: Publishers have two aspects of brand control to keep in mind: their own and the brand of their advertisers. Both online audiences and advertisers will look at the site and the brands promoted for consistency and credibility. Both will be making decisions based on what they find.
Advertiser: The relationship between advertisers and publishers needs to be mutually beneficial! If you are concerned about areas of brand control such as trademark bidding, set program terms and conditions for SEM bidding. Be sure to check periodically and reach out to any publishers that have started new campaigns. Use conversation as a way to ensure compliance and ask for feedback on other ways to improve the program.
Myth 3: Affiliate marketing is only profitable in niche markets
Publisher: Bottom line is that publishers need to be found to be profitable. Attract people with good SEO, videos, and written content. Then you can develop a loyal following, niche or not, through blogging or reliable email lists. You need to show your value to both the users and the advertisers.
Advertiser: It is not the market you are in or even the number of publishers in the program, but the quality and relationship that will make it effective. Take the time to get to know your publishers. If their focus is on BOW pricing, search your warehouses for the items that need to be moved and create a special offer. It will benefit both of you in the end!
Break through the myths in your company and position yourself to make the most of this profitable channel. Contact Informatics today for information about developing a program that will strengthen your brand and your sales.