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Performance Based Affiliate Marketing Proves Paramount

Written by Stacey | 07-May-2009 08:33:00

Despite the uncertainty around how marketing budgets may be affected due to current economic conditions at the end of last year, some media channels are weathering the storm better than expected - and others seems to be sailing through it.

With The Affiliate Marketing Buyer’s Guide 2009 reporting growth of 22% in the affiliate sector last year, it seems fair to say that Affiliate Marketing is one of the ‘Performance Media’ channels that are clearing up, while other less accountable channels are being hit by Client budget cuts.

Nielson’s ad spend report found the major media sectors: TV, national Press, magazines, outdoor and radio all experienced double-digit percentage declines in ad spend between January 2008 and January 2009.  A contrasting picture to the affiliate marketing boom that we may be experiencing now. 

We understand that Clients require clear line of sight to their media spend, and our planning approach; building up and incorporating new channels from this cost-effective ‘performance media’ base reflects this. 

We also understand that a unified tracking solution; reporting across online media channels enables us to make performance-based affiliate marketing campaigns even more cost-effective for our clients: Tagman’s survey on affiliate marketing (published on Econsultancy's blog) stated that advertisers could be wasting up to £385m per year in affiliate payments, by not de-duplicating across different digital marketing channels.

In tough times, the affiliate marketing ‘cost per acquisition’ model is as attractive to advertisers as the deals and discounts provided by cash back and voucher code sites are to the penny-pinching consumers!  It is no wonder then that the Affiliate Marketing sector accounted for almost 10% of all UK ecommerce sales last year and is set to boom in 2009, generating over £4billion of online retail sales.

For more information on how affiliate marketing could help your business, please contact us.