Affiliate Marketing can be an important component in the success of your online marketing efforts. It can quickly expand your market reach, drive qualified site traffic, and increase online sales. Plus, its low risk, pay-for-performance model makes it one of the most cost-effective marketing channels available.
Retailers only pay a commission for successful efforts, such as the sale of your products resulting from qualified traffic that affiliates drive to your site. It can help online retailers establish a strong brand presence on the web with very low initial and on-going costs of marketing
Forrester forecasts U.S. affiliate marketing spending will increase by a compounded annual growth rate of nearly 17 percent between 2011 and 2016, growing to $4.5 billion.
Key findings from the study included:
- Affiliate marketing spend is on the rise and will keep pace with other areas of digital spend through 2016.
- The affiliate channel produces new-to-file customers and generates incremental customer acquisition.
- The affiliate channel attracts consumers who spend more than the average online shopper and are profitable for advertisers.
- Affiliate marketing helps trigger brand reconsideration and often closes the sale for online shoppers.
- Promotions in the affiliate channel have a positive impact on an advertiser’s brand reputation and loyalty.