THE AFFILIATE MARKETING REPORT: How mainstream publishers are turning performance-based marketing into a 'fine art'
In a new report from BI Intelligence, we examine the changing face of affiliate marketing and take a close look at the key players. We also outline growth opportunities for affiliate marketing and how we see this industry developing.
Here are some of the key takeaways:
- Mainstream media publishers are helping legitimize affiliate marketing. In an effort to balance editorial integrity and revenue needs, publishers are taking a more native approach to affiliate marketing by embedding product links within organic content.
- Overall, publishers still generate the bulk of their revenue from advertising, but affiliate marketing is growing faster, per our sources. Approximately 15% of the digital media industry's revenue now comes from affiliate marketing.
The investment that media companies are putting behind e-commerce drivers is good news for retailers, because publishers play an important role in the purchase funnel.
- Affiliate marketing now drives as many e-commerce orders in the US as email. Both channels currently account for 16% of US e-commerce orders, according to marketing firm Custora. This makes affiliate marketing one of the four largest sources of e-commerce orders, outperforming social commerce and display advertising.
- Even consumers who already have demonstrated purchase intent commonly visit multiple nonretail websites before completing a purchase on an e-commerce website or in a store. Nearly three-quarters (74%) of US shoppers say they visit two to three nonretail websites before completing a purchase, and 16% say they visit more than four websites, according to Rakuten and Forrester data.
In full, the report:
- Defines modern-day affiliate marketing.
- Maps out the entire affiliate marketing ecosystem.
- Lists the types of metrics a retailer rewards affiliates for.
- Examines the impact of affiliate marketing on e-commerce growth.
- Projects growth opportunities in performance-based marketing.
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