The affiliate channel has proved a cost effective way of generating online sales for merchants who are keen to further their digital marketing efforts. Affiliate campaigns drive revenue for the merchant by getting the brand exposure on a number of affiliate's websites, which can drive sales, acquisitions and leads. However the benefits of affiliate marketing are not restricted to generating sales, as the channel can also be used for raising brand awareness or changing brand perceptions.
The E-Consultancy Affiliate Marketing Networks Buyer's Guide, published this week, highlights one of the major affiliate trends from last year: the growth in sales driven through incentive and loyalty affiliate websites. One of the largest and best known loyalty websites who have contributed to this is Quidco, who pass on all of the commission earned directly to their members.
Interestingly, affiliate marketing is no longer relevant only for blue chip companies, as E-Consultancy's research shows that SMEs are increasingly seeing the affiliate channel as an intelligent way to drive their online sales. As it stands, brands in the travel, retail and financial services sector are the ones most commonly found to be running an affiliate programme. However affiliate marketing can work for a wide variety of brands across a range of sectors, as it continues to gain in popularity.
E-consultancy's Head of Research Linus Gregoriadis said:
"Affiliate marketing continues to gain momentum because the performance-based model is so popular with advertisers. When the biggest consumer-facing brands in these industries do not have a well-defined affiliate strategy, it now tends to be an exception rather than the rule."
With the momentum swinging in the right direction, 2008 looks to be the year where affiliate marketing will become an essential component of online marketing campaigns.
