Evolution In Affiliate Marketing Bridges Innovation And Customer Loyalty
In the realm of digital marketing, respondents said affiliate marketing shows a notable alignment with key objectives, especially in leveraging emerging technologies (22%) and enhancing customer retention (22%). Technology partners within the affiliate channel are increasingly crucial, offering brands easy integration of new ecommerce technologies and enabling rapid deployment of marketing capabilities. This shift is indicative of affiliate marketing’s role expanding beyond new customer acquisition to include retention strategies. Despite the focus on diversifying ad spend away from big tech, only 18% of respondents said they view affiliate marketing as a key avenue for this goal, possibly due to the nuanced nature of individual partnerships. This evolving perspective highlights affiliate marketing’s growing sophistication and its strategic value in today’s complex digital marketing landscape.
“Of your selected top 5 digital marketing objectives, which of these can your affiliate/partner marketing activity currently support?”
Investing in emerging technologies to enhance our existing marketing capabilities
Improving our customer retention and loyalty rates
Improving our ability to measure the value of our overall marketing spend and actions
Improving the integration of data across our various digital marketing channels
Increasing new customer acquisition
Growing average order values from our customers
Improving customer experiences across our own online platforms
Personalizing our marketing communications to better target our customers
Base: 650 decision-makers at the director level and above responsible for managing marketing budgets and leveraging affiliate marketing andtech platforms. Source: A commissioned study conducted by Forrester Consulting on behalf of Awin, January 2024.
Channel Effectiveness In Focus: Affiliate Marketing Shines Amongst Peers
When assessing marketing channel effectiveness, respondents said content marketing/blogs leads with a 96% effectiveness rating, followed by paid search (PPC) at 93%. Affiliate or partner marketing stands out with a 92% effectiveness, which is comparable to email marketing campaigns and underscores its value and credibility in the marketing landscape. Respondents recognized these channels for their roles in engaging audiences, driving conversions, and aligning with performance-based strategies. Search engine optimization (SEO) and mobile apps/push notifications also maintain high ratings at 88% and 87%, respectively, highlighting their continued relevance. This overview reveals a landscape where diverse channels like content marketing, paid search, and affiliate marketing are highly valued by decision-makers for their impactful contributions to digital marketing strategies.
“Please rate the effectiveness of the following marketing channels for your organization.”
Content marketing/blogs
36% Highly effective
60% Effective
PPC
44% Highly effective
49% Effective
Affiliate/partner marketing
38% Highly effective
54% Effective
Email marketing campaigns
49% Highly effective
42% Effective
Social media influencers
54% Highly effective
36% Effective
SEO
51% Highly effective
37% Effective
Mobile apps/push notifications
45% Highly effective
42% Effective
Retargeting/ remarketing
39% Highly effective
47% Effective
Native advertising
31% Highly effective
53% Effective
Social media advertising
44% Highly effective
38% Effective
Base: 650 decision-makers at the director level and above responsible for managing marketing budgets and leveraging affiliate marketing and tech platforms. Source: A commissioned study conducted by Forrester Consulting on behalf of Awin, January 2024.
When It Comes To Budget Allocation, Affiliate Marketing Is Undervalued
Data on marketing budget allocation priorities reveals social media influencers as the top channel, as 54% of respondents said it’s a top budget priority. This underlines the channel’s growing influence in digital strategies. Email marketing follows with a score of 48%, demonstrating its ROI efficiency. Only 7% of respondents said affiliate or partner marketing is a top priority, a stark contrast to its perceived value. Interestingly, the high investment in influencers, increasingly run through affiliate partnerships in the case of nano influencers, suggests a more significant indirect budget impact for affiliate marketing than direct allocation indicates. This disparity shows organizations need to reassess affiliate marketing’s budget needs in line with its evolving role and integration with other high-priority channels. In fact, it may well be that affiliate marketing’s very diversity as a channel, incorporating elements of many others, means it is not easily understood in the eyes of senior marketers and therefore suffers a lack of equitable investment.
“Rank the following marketing channels based on your organization’s budget allocation.”
Social media influencers
30% Rank 1
15% Rank 2
8% Rank 3
Email marketing campaigns
15% Rank 1
20% Rank 2
13% Rank 3
Social media advertising
9% Rank 1
12% Rank 2
22% Rank 3
SEO
6% Rank 1
22% Rank 2
12% Rank 3
Retargeting/ remarketing
10% Rank 1
10% Rank 2
18% Rank 3
Content marketing/blogs
22% Rank 1
7% Rank 2
5% Rank 3
Mobile apps/push notifications
2% Rank 1
4% Rank 2
9% Rank 3
Native advertising
3% Rank 1
3% Rank 2
6% Rank 3
PPC
1% Rank 1
5% Rank 2
4% Rank 3
Affiliate/partner marketing
2% Rank 1
3% Rank 2
3% Rank 3
Base: 650 decision-makers at the director level and above responsible for managing marketing budgets and leveraging affiliate marketing and tech platforms. Note: Showing top 5 only Source A commissioned study conducted by Forrester Consulting on behalf of Awin, January 2024.
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