We decided explain why affiliate networks are a winning solution for advertisers and affiliates.
Freddie Mercury sang, “No time for losers ‘cause we are the champions...” Every advertiser dreams of a perfect launch of an ad campaign, every publisher dreams of sending the right traffic and receive a worthy payment. Affiliate network is the place where most winning deals happen.
Evertrack decided to answer the question of why affiliate networks are a winning solution for advertisers and affiliates.
Start from the beginning! Affiliate network directly related to affiliate marketing which has helped many well-known brands to become famous and grow their business. Affiliate marketing offered a new way of advertising and monetization and has already become mainstream for most brands and publishers.
According to Forrester, over 80% of publishers and affiliates retrieve the profit from the affiliate program. Affiliate marketing spends show the annual growth rate on 10% through 2020. None of these rates would have been possible without the use of affiliate networks.
Because the networks are low-risk, they refer to a performance-driven marketing model, and yes, the networks offer a win-win revenue stream for both parties: publishers and advertisers by giving confidence in partnership, payment, and a possibility to measure the performance.
Affiliate networks act as a marketplace for advertisers and publishers. They add the value to the interaction between two parties by providing a platform for exchanging traffic, updating the process, managing the payment, and reporting the aspects of affiliate relationships.
There are several key things advertisers and publishers should take a note of a performance network. Before we touch the main topic, let’s see the top 5 facts about affiliate network.
Top 5 facts about affiliate network
Affiliate programs and affiliate networks are an extension of the affiliate marketing strategy with a few key differences. Affiliate network helps affiliates and merchants easily find each other for partnership and participate in affiliate programs. Affiliate network keeps the whole system of interaction.
Affiliate networks are useful in tracking
In marketing, every impression or engagement counts. It is very important to understand which of the advertisement or channel can bring the return on investment (ROI). Lots of affiliate networks allow merchant or advertisers to track the clicks, conversions, sales, and banner engagements on affiliate apps.
Different networks where publishers and advertisers work together can show the running of the ad campaign, the merchant from its account manager can view the quick statistics. He can see the recent affiliates who referred a click or sale.
Keeping track and measure the important indicators of the performance help both parties define the result of the partnership.
Affiliate network has a well-thought payment system
The coolest thing in affiliate marketing is that advertisers pay only for agreed actions. Affiliate networks do not require large payments, affiliates and advertisers don’t make individual payments. They make deposit funds to the network once a month.
One of the most popular types of network is a CPA (cost-per-action) network. It is based on the most popular payment model. Here advertiser chooses the most optimal for its company action. It can be downloading the app, sign up, purchase, subscription, etc., and pays only for the result.
The next payment model can be CPC or CPL (cost-per-click/lead) mobile advertising network which is also popular. As you understood, this type demands the payment for every click or lead. The fixed payment depends on the goal of the advertiser or merchant, if the plan was fulfilled, then the ad campaign succeeded, if not then the strategy or publishers are changing.
Affiliate network allows building a long-term strategy
Mediating between advertisers and affiliates the network can help with the formation of advertising strategy and ad campaign launch. The ad campaign can take three to twelve months (advertisers usually know about deadlines). If you want your affiliate program to be successful, spending one or two days per week will not be enough. The more detailed you make the plan and the more often you control your strategy, the faster your campaign will start getting the first successful results.
What is necessary to do regularly:
- communicate with publishers;
- constantly search for new opportunities;
- use the innovations (lots of networks regularly update the toolkit);
- create promotional materials (like banners);
- develop different types of strategies for different types of publishers;
- analyze and report about periodic and constant changes (as we mentioned above, networks have the tracking tools, some networks cooperate with fraud detection companies).
Affiliate network has great customer support
Today marketing suggests reusable communication with customers. Advertisers and affiliates have to think further and not just make them apply once or make the one-time purchase, it is more effective to make them regular clients. Affiliate networks also follow this wisdom.
As clients affiliates and advertisers receive quality service,сonstant consultation opportunity, and business expansion potential. There are different features in the affiliate network.
According to Neil Patel
, 92% of global customers trust the “earned media” type among other forms of advertising, affiliate network contributed to it. Remember, knowing your audience helps create the advertisement that will be OK for the users and will not annoy them. Finding the right place (apps) of advertising also helps to make the customers loyal, and the last thing is the time. Respect the time of your audience, and think about the right time for your audience.
Affiliate marketing doesn’t function well without affiliate networks
After joining the network affiliates give all the contacts to assist with any technical and marketing aspects of their program. The more contacts and information the advertisers leave, the more developed and optimized their campaigns can be.
Generally, advertisers and other affiliates that wish to enter the affiliate world have a big desire to try new strategies to find out what works and what doesn’t. Any type of digital advertising has its style and aims, while affiliate marketing offers the diversity.
Affiliate networks help advertisers work with their affiliates. But, do not rest the full responsibility on affiliate network. Use it as an auxiliary tool in your marketing strategy.
Affiliate network in action
Let’s say, we have an advertiser named Jorge. He has an app or a website that offers all about skateboards. He has a lot of creatives with which he wants to share. It can be video, banners, pictures, reviews, etc. All these things can be used for brand promotion.
In the reviews, he can attach the link to the page where users can purchase the stuff. The effectiveness of this sales campaign can bring about 5-10% of income. A more effective way is when someone advises the product that Jorge is trying to sell. Here, affiliates have no equal. Jorge refers to an affiliate network and creates and places an offer.
After a while, good Samaritans appear (so-called affiliates) and take the offer. They send the traffic on the Jorge creative or place it on suitable sites or apps. After a while, Jorge gets a statistics about the performance measure and pays affiliates for the work done. And that is how the magic happens.
Why affiliate networks?
The best way to understand the role of the affiliate network is to imagine a middleman between the merchants and affiliates. Let’s say you decided to buy a house. Where do you go first (to avoid cheating and a lengthy paperwork process)? Sure, to a real estate company. Why? Because house agents already have a database, they can offer you several deals. The aim of the realtor is to leave both the seller and the purchaser happy.
This is actually what networks do in performance marketing. Affiliate networks recruit affiliates, attract new advertisers, track leads and make payments. Their margin can vary from 15% up to 30%. For example, the advertiser in the offer pointed $10 per lead, that means that the advertiser pays $13, affiliates earn $10 per lead, and the network takes its $3 per lead. It’s a fairly honest distribution for the services provided.
Affiliate networking benefits: one more time from the top
- All tracking and payments are done by one network (no need to use different invoices)
- Lots of networks have a sort of rewards and stimulus to work. Networks motivate their affiliates to bring more value and send traffic without fraud
- Thanks to networks, publishers can access different offers and advertisers can diversify their ad campaigns with more affiliates
- Running a CPA campaign means that an advertiser pays only for a certain action
- Some networks interact with fraud detection companies, which gives a number of advantages to advertisers
- Affiliate networks are an excellent way for small businesses to expand their branding and online business.
Predictions about affiliate marketing in 2019
Affiliate marketing allows to get a substantial income and outsource a lot of routine tasks. Despite affiliate marketing sounds like an easy way of income generation, it takes many hours of learning, adoption, and practicing.
Advertising will change the classic role of written words in affiliate marketing. Marketers will decorate their creatives with images, videos, demos, courses, slideshows, live content. It relates to the need of being close to the customers and becoming more familiar to them.
According to Statista, 64% of all paid Google search clicks are mobile based. It means that affiliate marketers will go to the side of mobile marketing. Creation of mobile-only offers will bring the marketers closer to their audience and will bring more leads.
Affiliate marketing continues to grow and evolve, it is like a bottomless sea of possibilities. Branching the advertisements allows to wider a potential of affiliates and marketers. We advise you to make conversant with the role of Evertrack in your business. Here
you can read about why it rocks.