How Affiliate Marketing Is Driving Company Growth
Among all the various online business ideas, affiliate marketing tops the list in terms of barrier of entry. Funnily enough, it’s actually fairly difficult to generate an income through affiliate marketing because it normally relies on organic search engine traffic. Something that is difficult to achieve for many people that are first getting started online.
SEO is a wild beast and it takes a good amount of time to understand how the SERP’s really work and tailor your strategies to meet the expectations of Google and Bing.
Revelations Of An Affiliate Marketing Case Study
With that being said, the affiliate marketing industry continues to grow, year by year and is projected to grow to a $6.8 billion dollar industry in the US alone over the next four years.
This type of growth indicates a significant increase in uptake and opportunity for affiliate marketing.
Rakuten Marketing released the findings of a survey back in February 2016 on the perception and effectiveness of affiliate marketing programs.
The results revealed that almost 90% of advertisers said that their affiliate programs were either “important” or “very important” to their marketing strategy. The majority of companies revealed that affiliates drove more than 20% of their yearly revenue.
Affiliate marketing is now viewed as a highly powerful method to discover new customers, increase brand engagement and generate more sales for businesses.
According to the survey, affiliate marketing has matured into a powerful way to drive sales for advertisers across the globe. As mentioned above, US affiliate marketing spend alone is set to grow by just over 10% between now and 2020 to $6.8 billion dollars.
The affiliate networks that operate as the intermediary between the affiliates and the merchants are the heart of sales growth, offering tracking and quality assurance for both parties involved.
Some of the most interesting findings of the case study include:
- More than 80% of advertisers and publishers surveyed, ran an affiliate program
- Over 80% of advertisers assigned more than 10% of their marketing budget to affiliate marketing.
- Marketers utilize affiliate marketing at every stage of the customer journey, with 83% targeting customers at the discovery and awareness phase and 79% during conversion, purchase or during ongoing customer engagement.
- Tracking is improving. Advertisers are better understanding the catalyst behind purchasing decisions. 80% of marketers tracked desktop and mobile sales.
- For affiliate’s the choice of affiliate network is paramount to partner product promotion. 83% of affiliates surveyed use their affiliate network to select an appropriate product/service to promote with 79% of them attending events hosted by the networks.
How do people normally get started with affiliate marketing?
Many people that are looking to start a side business, get started with affiliate marketing because you can get started almost straight away and you don’t have the barriers to entry that traditional businesses do. You don’t need to invest a fortune either but one thing that you do need to invest is good ol’ precious time.
People normally start affiliate marketing by joining an affiliate program that has great affiliate marketing training. Some of the best affiliate programs provide training as well as mentorship and support.
There are hundreds of training programs out there dedicated to empowering people with the knowledge and skills they need to succeed online. In particular, there are plenty of resources out there for learning how to start affiliate marketing. The fundamentals are actually fairly simple. It just takes the right mindset to follow through with one thing until you start reaping the results.