We’ve all got that BFF who we wouldn’t do anything without. Ask yourself this; would you go to the One Direction concert to check out Harry Styles and the boys without your bestie by your side? erm NOPE. Would you go to the pub to watch the Footy Grand Final without your number one booze brother? Not a chance mate. From childhood, through to our teenage years and then into full-blown adulthood, we always have that one mate who makes everything just that bit better. The one that adds the best value to your friendship circle, who always makes everyone laugh but at the same time will also be there to comfort you when you’ve just been dumped by your nasty ex (don’t worry, they didn’t deserve you anyway). Well, get ready to add another one of these heroes to your group of mates. Please allow us to introduce to you…
Affiliate Marketing – Your new BFF!
Affiliate marketing is one of our fastest-growing channels at Wired and from what we hear and read, this is the same across the digital landscape for a large number of advertisers. Here, we’ve highlighted some of the reasons why this might be the case.
- “Risk-free” – The Safe Friend
Affiliate is attractive to advertisers as (with most) affiliate partners you only pay when a user makes a purchase. Additional budget can go toward channel amplification during a sale period or tenancy fees on a partnership, however either way, for a slight increase in commission you can have a multitude of partners promote your brand, offer, product, service etc across all of their owned and earned channels, to all of their thousands of members, and you only pay a percentage of every sale you make! Even if that user doesn’t purchase something but visits your site or sees an ad, that’s free traffic and brand awareness AND they are now part of your remarketing audience pool to reach via other channels. It’s a no brainer, right? We all need that safe, sensible friend in our lives to stop us spending our hard-earned money on things we don’t actually need!
- Full-Funnel in One Channel – The ‘Jack-of-all-trades’ Friend
The breadth of partners out there on the network can assist in achieving all kinds of goals and targets, whether it be brand awareness or revenue, there will be a number of partners to suit your needs as Partnership Marketing touches all points of the funnel.
Many advertisers use cross-channel strategies to achieve an overall goal or KPI, for example using YouTube activity for brand awareness or a new product launch, with Organic and Paid Search picking up the sales or leads at the other end. The classic top-to-bottom funnel approach that we’re all familiar with. Here at Wired we’ve been using Affiliate partners in a similar way to large success. For example, Content partners are great for brand awareness, so work well for promoting a sale or the launch of a new product, but you might not rely heavily on these partnerships to drive immediate revenue. One partnership category that we’ve found to be excellent at driving immediate, incremental revenue with increased basket size are Cashback and Loyalty sites. Using both these types of partners holistically, in the one channel, to achieve an overall goal has worked incredibly well! Just like the mate who will help you pick out the perfect bedside table, let you use their car to drive it home from Bunnings and then help you build it afterwards.
- Consumer Rewards – The Generous Friend (who always gets the round in!)
Some of our Affiliate clients achieved a huge increase in revenue during COVID-19 as consumers have been forced to become smarter with the way they spend money. These sites have become very prominent and new members have signed up en masse during recent times, with thousands of consumers increasing basket size to increase their level of Cashback or Loyalty points. You can receive Cashback or Qantas points across pretty much any vertical now, from Energy Providers to Fast-food Restaurants and everything in between. A recent IAB Australia Affiliate Marketing Industry Review found the Reward category to be the second most valuable category to brands on the network, which you can see in the table below. It’s like the mate who gives you $5 extra toward your taxi fare but refuses to let you pay them back. Ah, what a legend.
- Part of Holistic Digital Strategy – The Friend Who’s Friends With Everyone Else
As a Digital Performance Agency, we manage multi-channel campaigns for all of our clients. The clients that we manage the Affiliate partnerships for, also use our services across the likes of Paid Search, SEO, Programmatic Display, Video, Paid Social and On-page Social. This gives us a cross-channel view of almost all of their digital performance, allowing us to build strategy and optimise campaigns holistically, to achieve overall objectives. Affiliate marketing is currently driving the second highest ROAS on all channels for one of our clients, as well as being one of the driving forces behind it becoming the fastest growing brand in their category in Q1 of 2020. As the consumer landscape changes so dramatically and rapidly, we need to ensure as marketers and partners of our clients that we adapt to these changes and promote the most cost-effective ways of driving performance. It’s like when your bestie introduces you to another friend of theirs, and you all become BFF’s and form a band that then becomes The Black Eyed Peas.
From our experience, Affiliate Marketing has been one of the best ways of achieving success so far in 2020.
Ermmm… what’s that, Affiliate? Did we just become best friends!? YUP!!
Now, to the garage for some karate!
Words By James Deehan, Digital Media & Partnerships Director