What Is Affiliate Marketing? 4 Basic Reasons That Affiliate Becomes A Powerful Marketing Method

What Is Affiliate Marketing?

What Is Affiliate Marketing?

Many studies have proven that Affiliate Marketing is one of the best marketing methods in sales and increases the conversion rate of leads to customers who agree to use the products and services provided.

In this article, I will show you 4 basic reasons for Affiliate Marketing to become a powerful marketing method.

Many studies have proven that Affiliate Marketing is one of the best marketing methods in sales and increases conversion rates.

Affiliate marketing is sometimes also referred to as “word of mouth” marketing when people buy things based on the opinions and influences of others. This is a powerful marketing channel because people often trust the opinions of people they know and trust like family, friends, celebrities on social networks, or stars.

And this is completely understandable. Because we often ask our friends about things like watching a TV show, renting a movie, or eating at a restaurant.

We are consumers who also want to share our experience, the product we have purchased, and the firm we choose. We want to do this even more when our product and shopping experience are great.

Why is AFFILIATE a powerful marketing method?

Affiliate marketing can be viewed as a miniature combination of all digital channels. Digital marketing includes SEO, Google Ads, Facebook Ads, Social, PPC, Display, Email, Native ads, and even Affiliates.

However, Affiliate in essence (Performance marketing based on Partnership) is that advertisers rely on publishers to promote their products. Publishers can run all forms of digital marketing and they receive a commission when a user purchases through their link (i.e. the last step in the user’s purchase journey).

To maximize the purchasing power of users. Publishers will run advertising campaigns based on traffic platforms such as their websites, blogs, social networks or user data.

Therefore, affiliate marketing can approach many touch points in the purchase journey (Customer journey).

We all know that word of mouth and affiliate marketing is a powerful way and are consistently rated as one of the most effective marketing methods, but why?

There are 4 main reasons for this:

1. Impact, affect the entire customer journey

Today, when the purchase journey of users is increasingly complex and difficult to control. Approaching potential customers only through a few “touch points” proved not effective enough.

Businesses need a strategy to bring the brand’s message to the right prospect’s file, at the right time.

According to research, 70% of users believe in reviews and expert reviews, which are influential before making a purchase.

Affiliate as said can be understood as a form of “Performance marketing based on Partnership”.

Enterprises rely on publishers (partnerships) to deliver their message to customers. Using affiliates thus allows brands to penetrate deeper, more optimal ways in the customer journey.

2. Understand the customer insight

Every marketing strategy of an enterprise in addition to its goals to help increase customer sales is equally important from the data that the marketing campaign brings. How businesses can use it to improve their products and services for future campaigns.

For affiliate marketing, businesses can use the publisher’s customer data like which digital marketing channel is bringing the most customers to your product. From there, businesses can increase the budget into effective channels.

Who is your potential customer file?

For each touch point in the customer journey, what is the appropriate message?

3. Quick application of new technologies to the enterprise’s marketing plan

As the trend of automation marketing becomes more and more clear. Many businesses are still struggling with how to apply it to their corporate models effectively.

The risks of personnel costs and management always make businesses hesitant when exposed to new technology.

Affiliate, meanwhile, is essentially a partnership with publishers that allows businesses to gain brand exposure across multiple platforms at the same time. CPA (Cost per action) model helps businesses control their costs. You only pay when your customer’s order is recorded and paid successfully.

4. Measure the effectiveness of marketing campaigns

Recently, when terms like Performance, ROI (Return on Investment) mentioned more and more. Before every decision to launch a campaign marketing, the question is always how to measure the effectiveness of that campaign.

According to the IAB Marketing report, the average business can earn $14 on every $ 1 spent on Affiliates. The ROI corresponds to 1400%.

Read more: <<<How Much Does Online Marketing Cost To Success?>>>

CONCLUSION

Affiliate Marketing is a powerful and important tool for every business. Just by applying a few basic tactics, you can help develop, and improve the referral process and create a new source of sales for your business.

Thank you for spending time on my website!