Performance marketing is one of many channels of digital marketing. If you are an advertiser that is familiar with this approach to advertising, you may appreciate that participating in affiliate networks connects you to a vast pool of expert marketers and publishers that focus on very niche content areas.
What makes this so interesting is that niche marketers become experts in their subject matter, and are seen as trusted sources of information for their audience. They are also active marketers that leverage various tactics like search-engine optimization to ensure their site is as visible as possible to their target audience. According to an article by Entrepreneur, it is affiliate marketing’s targeted and timely content that allows brands to stay relevant and engage target customers.
If you are unsure whether performance marketing is right for your business, here are five more reasons to consider:
Performance marketing is cost-efficient
- Since affiliate marketing operates on a cost-per-action performance based basis, the advertiser only pays for qualifying actions, such as per sale. It’s a low cost marketing channel with minimal initial capital.
- We recommend a commission structure that aligns with your business objectives. For example, maximize the number of sales by increasing the amount of incentives once a target number is reached. We don’t advise paying out a large incentive to get started and then lowering it after.
Affiliates offer niche, grassroots marketing
- Affiliate marketing targets a specific audience. Share Results have affiliates segmented in the Canadian and US markets as their key demographics. Customers visiting affiliates’ sites are also highly engaged because they have their interests aligned. For example, customers going to a credit card comparison site or searching for an interest rate calculator tool are also looking their next credit card. These are your target audience with needs in financial products and services.
- Key Stats: Share Results 2018 Q1 conversion rate for all financial products reached 27%.
Easily track results
- Advertisers can benefit from traffic monitoring and reporting. You can track any variables from website visitors, impressions, click-through-ratios, clicks, registrations, conversions, transaction status, approval ratios, commission amount, etc. These are valuable information that give you details of the customer journey, whether they are in the top, middle or bottom of the marketing funnel. They also give insights on how well each campaign is doing and whether a strategy or tactic is performing.
Easy to maintain
- Since sales are generated by affiliates, you don’t have to invest time and resources into building additional campaigns. Affiliate networks are fast ways to scale your marketing efforts. Affiliates’ website, its user experience, and campaign appeal are all important factors to engage customers and affiliates have to be skilled in those areas as well as having the target audience and market fit. The success factors are finding this fit and developing and nurturing these partnerships. You can either manage it yourself or through an agency with all-in-one affiliate management services.
Generate additional conversions from cross selling
- Many affiliates have tools and information regarding a range of financial products and services. This builds a customer journey that maximizes lifetime value. Having a vast affiliate network also allows for complementary affiliates to cross sell your products and services. For example, placing travel credit cards on travel or airline booking affiliate sites can increase the chances of selling to existing customers, who are much easier to attract than new prospects.