What 2020 and a global pandemic taught us about the value of Affiliate Marketing.

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A hot mess, a dumpster fire, and a train wreck could all be used to describe 2020, however it would be unfair to say that it only brought us negative things. This past year has taught us a great amount of lessons, starting by how to make the perfect banana bread, the art of whipped coffee, the infinite amount of events, reunions, celebrations and work that can be accomplished through zoom and finally, the importance of migrating businesses online, and developing a digital strategy for them in order to survive and adjust to the digitalization process accelerated through the pandemic.

Online is here to stay, and we already knew that, but now we have digital activities that did not exist in the past and that are changing the way we consume entertainment, health and beauty, among others.

This is the case of concerts and sporting events which are now consumed online with platforms such as Live Now, allowing access to a wider audience not restricted to a geographical location. Just look at Mike Tyson’s return to boxing streamed by FITE TV, which drove over 1.6MM purchases, becoming the largest pay-per-view event in 2020, and the 8th most purchased PPV in history!

We have also seen major shifts in the beauty industry. Time has come for beauty products such as Kenzzi, which allow customers to get professional laser hair removal results without ever even having to step a foot outside their homes. Direct to consumer brands are also benefiting from this online change as people change their shopping habits and start demanding more products online.

The pandemic accelerated the digitalization of brands both with and without online presence. However, it is important to understand that it has also changed the way companies use their resources on the Internet.

The economic crisis resulting from the pandemic makes brands optimize their resources to seek greater efficiency of their advertising investment. This is where Affiliate Marketing comes in.

What is Affiliate Marketing, how does it work and why is it gaining relevance today?

Affiliate Marketing is a performance-based advertising model where an advertiser rewards an Affiliate for each lead or sale generated by users that the Affiliate has referred through its online advertising.

By definition Affiliate Marketing works on a cost per action element. The most common Affiliate programs are by lead (CPL), or sale (CPS). In both cases, the advertiser only pays a commission after they have achieved their goal: either filling out a form or making a successful purchase.

Why is it gaining relevance today? Simply put, brands pay for results, and they get a guaranteed high ROAS (Return of advertising spent) while creating or expanding their online presence, something crucial for any brand nowadays and entering into 2021.

Affiliate Marketing also helps brands strengthen the relationships with their customers. It is not only about initial sales, but creating a long lasting relationship with your customers. Retaining customers is much more efficient and easier than getting new ones, and it is something that brands are beginning to be aware of.

A correct Affiliate Marketing strategy has measurable impacts on sales and creates loyalty.

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Why do companies like the UFC, Real Madrid, Freshly and Amazon use this type of marketing?

Because, in Affiliate Marketing, you pay for results, which allows for a higher return on investment, and less risk to your overall ROI metrics. Covid times ask for efficient investment and this is exactly what Affiliate offers to brands.

In the last months we are seeing that several global advertisers across all verticals are massively migrating their budgets to Affiliate Marketing in search of investments with assured return, as well as targeting top of funnel opportunities through content partnerships.

In addition to this, brands have become aware that an online presence is crucial for their business and that they need to get people talking about their products. Affiliate Marketing, in addition to efficient investment, fulfills the function that PR agencies previously performed, so clients get measurable results, optimized spending and PR benefits such as their brand getting published in the top publishing online media houses which enhance their online presence and the value perceived by their target audience.

Why do DTC brands benefit from Affiliate Management as well?

As we mentioned previously, with Affiliate Marketing you pay a commission from results, so you control ad spend while building your brand’s presence. In these times of uncertainty, every dollar saved counts and every investment needs to be efficient and measurable.

Affiliate allows all of these and it also provides insights for the brands with the ability to track and measure results. This is what has made digital marketing vs traditional marketing so interesting for brands, being able to measure the results of your marketing efforts. Be it brand awareness or conversions, Affiliate Marketing allows you to track, test and measure results, gathering information for continual growth. Affiliate Marketing increases your visibility online and ramps your online revenue.

In regards to revenue driving strategies, it is important to mention you can also manage loyalty programs and promotions, choosing which channels you want to use for different promotions and offerings depending on your audience, goals and strategies. Affiliate Marketing management can open new channels for your brand to communicate with its audience and also give you control over each channel.

Last but definitely not least, the content management you receive through professional Affiliate Marketing Agencies can help you get to new consumerswho have not discovered your brand and servicesthrough publications on top media houses such as Vogue, Conde Nast, Buzzfeed, The New York Times, and CNN Underscored, to name a few, as well as mentions and comments from top driving influencers, high ranked bloggers, relevant review sites, coupon sites, specific sites related to your brand and social media.

The benefits of working with an agency

In times of pandemic, brands need access to know how and experience when they don’t have the time or means to develop it on their own. Today brands need to keep up with the pace in order to survive and not be left behind in a competitive marketplace.

Having your Affiliate Marketing channels managed by an agency helps you get insights about consumer changes in the market that you could be missing out by working independently. This is something crucial today as we live in times of constant change and are dealing with an economic recession. With an agency you can get insights and information circled back to you on what happens with similar brands and who to cope with your current situation to transform it into a growth strategy by building upon the agency's knowledge.

Another advantage the agency provides for DTC brands is to test new channels such as “Affiliate” by helping the brand by saving time and money in an inhouse investment and providing flexibility to adjust for change.


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