How to take Affiliate Marketing to the next level
As the advertising market continues to be squeezed by Google and Facebook, publishers need to innovate their business models
Digital advertising has steadily become dominated by the Duopoly (Facebook and Google) & Amazon, who controlled 70% of the market in 2018. With that number expected to grow in 2019 and beyond, publishers are being forced to either accept lower margins, or diversify business models.
Affiliate marketing is fast becoming a favourite from brands to pivot away from advertising. Offering a viable method to generate alternative revenue from content.
The issue for many brands is that this strategy is still mainly based on volume, with publishers aiming to bring as many eyeballs as possible to each piece of content, with the hope that a certain percentage will convert. While these activities are supported by cookie-data, this strategy is not data-driven, and without a method to effectively track users across multiple devices or platforms it remains a difficult proposition to understand evolving interests and behaviour. …
Social as we knew it is over. Brands must adapt to create new opportunities.
The brand-audience ecosystem has changed. It’s well-documented that social media has undergone a seismic shift over the previous years, moving from a free tool that brands used to interact with audiences, into platforms putting monetisation at the forefront.
Most media brands are evaluating direct to consumer (DTC) options, and whilst the headlines are troublesome, there are new opportunities to implement diversified business models returning control, revenues, and live audience insights to brands for those bold enough to seize them.
Brands fund the social ecosystem
Ad revenues now represent >94% of Facebook’s revenue, with brands forced into brutal acclimatisation of this new era of social. Digital media felt the impact most — losing unrestricted traffic (the basis of VC funding in many cases), while content revenue-sharing agreements shifted. …
Instagram has announced the launching of it’s new eCommerce product, Instagram Checkout, allowing brands to sell products directly via the news feed. Well-known fashion retailers, including Nike, Zara, Uniqlo and seventeen other brands, have signed up as initial launch partners to the service.
From the outside looking in this would seem to be a win-win for brands, they overcome the big hurdle in the customer journey of having to encourage potential customers to go to the brand’s external site, sign up, and then complete the purchase, typically a reason why most basket abandonment will occur. …
After Facebook shares dropped $120bn, brands should be nervous
The Facebook-brand relationship
Following missed revenue targets, Facebook shares dropped by 19% on 26th July, representing a record $120bn loss in a day. The results have left brands worldwide in a state of worry, and so they should be, if we’ve learned anything from past events is that brands are typically the ones left to pick up the bill when Facebook can’t deliver for their shareholders.
In 2015, when audience growth plateaued the social platform had to rethink their approach and progressively significant changes were made. …
Shifting social ecosystem offers media the opportunity of generating sustainable profits from social
Social revolutionised how brands interact with audiences, gaining traction based on the combination of mass audience adoption, virtually unlimited organic reach and revenue-sharing for content creators, able to reach >85% of target audiences. It’s no surprise this proposition acted as a catalyst for a new generation of social businesses.
This all changed in 2015 as Facebook’s audience acquisition plateaued. To maintain growth, free reach was reduced by 52% with ad costs simultaneously rising by 171%, completing the migration from free social to a paid ad platform by 2017. …
Social has become an integral part of audience interaction, isn’t it time for brands to get control?
Are legacy platforms still an effective sales funnel?
Social revolutionised how brands interact with audiences, gaining traction based on the combination of mass audience adoption, unlimited (free) organic reach for brands and revenue-sharing for content creators able to reach >85% of target audiences. No surprise social acted as a catalyst for a new generation of social businesses.
Social changed in 2015 when Facebook’s audience growth plateaued, and to maintain growth reduced (free) organic reach by 52% in 2016, whilst raising ad costs by 171% in 2017. The lack of formalised content revenue agreements has become a perennial issue for even the largest content creators, and dependent on organic reach, it’s estimated that less than 5% of publishers’ digital revenue now originate from social platforms. Despite serial well-documented controversies, it’s clear from Facebook’s Q1 2018 results that brands remain willing to absorb increasing social marketing costs. …
The impact of live audience insights and real time decision-making
Live data was seemingly confined to the financial sector, where real time insights are vital to multi-million, split second decisions. Through a new generation of social platform the ability for real time decision-making has opened to the media and retail industries.
Live data will become an increasingly important part of the media package to advertisers. ESI Media (Evening Standard and The Independent) recently created a real time portal into their audiences, allowing advertisers to judge articles, in terms of impressions, dwell time, location and section (sports, business, etc.), …