Webgains
Jack Davies, Commercial Director and Mumtaz Khamker, Head of Strategic GrowthBusinesses are looking closely at their outgoings and revenues with the most prudent having been preparing for many months or even years. Budgets and spends, including those in digital marketing, are being reviewed to ensure survival but as is always the case with uncertain times, some will thrive.
Like many of our clients, we are braced and prepared for some challenging times ahead. However, as an affiliate marketing network, we feel extremely optimistic about the opportunities that lay ahead. If any marketing channel is to be called recession proof, surely it is affiliate and here’s why:
Online shopping remains incredibly popular.
In our recent Future of Retail white paper, we highlighted that 2020 online shopping rose an impressive 25.7% worldwide. Whilst the in-person shopping experience has bounced back post covid restriction since then, the space is stronger than ever. Morgan Stanley predicts that the global e-commerce market that was worth $3.3 trillion today could increase to $5.4 trillion in 2026.
It’s resilient. Affiliate marketing grew during the pandemic.
If e-commerce is growing, then so is the affiliate channel. According to this survey run by IAB UK, affiliate performance increase by 56% net during the COV-19 pandemic. It’s a channel not only with resilience but an incredible ability to prosper in such times.
Pay on performance is a no brainer.
One of the things we tell our customers and those learning in Webgains Academy is that when it comes to operating in our affiliate network, when you win, we win too. Set up and activation fees for brands launching affiliate programmes are negligible. The bulk of spend in the affiliate channel is paid as override, or as a percentage of commission. Merchants only pay out to affiliates when that affiliate gets them a sale. This is totally different to other popular channels such as PPC the spend is the same no matter whether a sale is generated or not.
Shoppers will be more likely to seek out discounts than ever before.
Given that we live in a consumerist society, we know that we will never stop shopping online. What will change however, as inflation rises, is how much cash we have available to spend. This will absolutely drive more shoppers to seek out discount codes and vouchers to decrease the price they pay for goods. This is brilliant for those with affiliate programmes as voucher code websites are amongst the most popular affiliate sites around!
Affiliate networks offer the chance to diversify your partners and find new audiences.
At Webgains, we always encourage our merchant Advertiser customers to diversify their portfolio of publishers to reach new audiences. This works not only in geographical terms but also when it comes to interests and shopping behaviour. Fortunately, operating on an international affiliate network like Webgains with a choice of thousands of publisher partners to connect with, this can be done with ease.
One of the main ways we do this is through our AI and ML functionality we call Affiliate Discovery. This works by serving up a set affiliates that we personally believe you should invite to your programme. The suggestions are based on the Affiliate’s site quality, what they are talking about to their users and the performance data across the entire Webgains network.
Voice of the experts
Webgains Global Head of Strategic Growth, Mumtaz Khamker
“It’s the smart bet! A global programme allows you to diversify and future proof the channel as you’re not relying on just the one market. Consumers are driven by emotion and by need and it’s very possible that consumers in your ‘home’ market may have become saturated with competitors offering similar products and services. With this in mind, perhaps your offering is forecasted to gain traction in Germany or the USA, depending on what you may have researched regarding consumer habits there, so why not open a programme in those markets? After all, with the channel being 100% performance led what do you have to lose? (and gain learnings to boot).”
Webgains Commercial Director, Jack Davies
“It’s not a question of why, but a question of when you should look to launch an affiliate programme; and the answer is now! The affiliate channel represents an effective and low risk marketing method that allows our clients to market to audiences that span further and wider than a typical standalone paid search or social campaign. Affiliate marketing is going to continue to grow and offers a new avenue for e-commerce entities as the cost-of-living crisis causes consumer confidence to drop.
Consumers are going to continue to be far more price elastic and look for alternative options to make disposable income stretch further. This means that publishers who promote products rather than brands can support the growth of their retailer partners who utilise feeds and want to grab the market share as it opens up.”
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Whether a basic introduction to affiliate marketing or for more advanced tips and tricks, Webgains has you covered. Simply enrol at Webgains Academy for access to our free learning courses and resources. Alternatively, if you’re ready to start an affiliate programme of your own with Webgains you can take advantage of our exclusive offer for CIO Review readers, click here to get started.
Given that we live in a consumerist society, we know that we will never stop shopping online. What will change however, as inflation rises, is how much cash we have available to spend. This will absolutely drive more shoppers to seek out discount codes and vouchers to decrease the price they pay for goods. This is brilliant for those with affiliate programmes as voucher code websites are amongst the most popular affiliate sites around!
Affiliate networks offer the chance to diversify your partners and find new audiences.
At Webgains, we always encourage our merchant Advertiser customers to diversify their portfolio of publishers to reach new audiences. This works not only in geographical terms but also when it comes to interests and shopping behaviour. Fortunately, operating on an international affiliate network like Webgains with a choice of thousands of publisher partners to connect with, this can be done with ease.
One of the main ways we do this is through our AI and ML functionality we call Affiliate Discovery. This works by serving up a set affiliates that we personally believe you should invite to your programme. The suggestions are based on the Affiliate’s site quality, what they are talking about to their users and the performance data across the entire Webgains network.
Voice of the experts
Webgains Global Head of Strategic Growth, Mumtaz Khamker
“It’s the smart bet! A global programme allows you to diversify and future proof the channel as you’re not relying on just the one market. Consumers are driven by emotion and by need and it’s very possible that consumers in your ‘home’ market may have become saturated with competitors offering similar products and services. With this in mind, perhaps your offering is forecasted to gain traction in Germany or the USA, depending on what you may have researched regarding consumer habits there, so why not open a programme in those markets? After all, with the channel being 100% performance led what do you have to lose? (and gain learnings to boot).”
Webgains Commercial Director, Jack Davies
“It’s not a question of why, but a question of when you should look to launch an affiliate programme; and the answer is now! The affiliate channel represents an effective and low risk marketing method that allows our clients to market to audiences that span further and wider than a typical standalone paid search or social campaign. Affiliate marketing is going to continue to grow and offers a new avenue for e-commerce entities as the cost-of-living crisis causes consumer confidence to drop.
The affiliate channel represents an effective and low-risk marketing method that allows clients to market to audiences that span further and wider than a typical standalone paid search or social campaign
Consumers are going to continue to be far more price elastic and look for alternative options to make disposable income stretch further. This means that publishers who promote products rather than brands can support the growth of their retailer partners who utilise feeds and want to grab the market share as it opens up.”
----------------------
Whether a basic introduction to affiliate marketing or for more advanced tips and tricks, Webgains has you covered. Simply enrol at Webgains Academy for access to our free learning courses and resources. Alternatively, if you’re ready to start an affiliate programme of your own with Webgains you can take advantage of our exclusive offer for CIO Review readers, click here to get started.
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Company
Webgains
Management
Jack Davies, Commercial Director and Mumtaz Khamker, Head of Strategic Growth
Description
Due to a combination of the war in Ukraine and the world coming out of a global pandemic, Europe is facing uncertain times and extremely high-levels of inflation are causing a cost-of-living crisis that continues to bite.
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