In recent years, the shift to ecommerce has brough about new ways to drive sales and revenue outside traditional channels such as search and display, making way for influencer marketing, social commerce and partner marketing. Niels de Groot, Head of Global Alliances for Awin Access, explains how partner marketing can benefit businesses in 2023.
In 2022, Awin Access welcomed more than 1,600 advertisers onto our partner marketing platform. These online shops are successfully driving sales and revenue to fuel their growth with an average ROI of 1:12.
Awin surveyed advertisers and agencies in the UK to understand how the partner marketing channel is perceived the channel and the value it generates.
The responses revealed a number of insights which explain why it’s growing in popularity and make it a must for small businesses in the current economic climate where companies’ ad spend is under so much pressure and scrutiny.
Partner marketing consistently delivers a strong ROI
As a performance-driven channel, ROI was valued most by advertisers and agencies in affiliate marketing activity, directly followed by sales volume and profitability. Small businesses are actively looking for sustainable and affordable growth; partner marketing enables online stores to manage spend effectively, drive incremental revenue and test digital activity, without impacting margins.
Maintain 100% control
Managing commissions, margins and the partners you work with is key to the success of any partner programme. CPA (cost per acquisition) continues to be the most common payment model. 95% of surveyed clients named this as the payment method used for their programme. Clients are impressed when they see spikes can be driven with the use of enhanced offers and working with a variety of partners.
It’s a naturally diverse marketing method
There are many options for to engage online audiences throughout the purchase journey. 47% of the respondents thought the channel has more partnership opportunities now than a year ago. Especially influencers and editorial content partners are high on the list of brands planning to invest more in going into 2023.
How agencies are utilising partner marketing as growth channel
The unique elements of performance driven marketing and advertising (pay-per-sale or lead) are key drivers for agencies to invest time and build meaningful and long term relationships on behalf of their clients.
Over the years, I have worked with expert agencies across various international markets. Currently, I am seeing a clear increase in digital performance agencies, PR agencies and independent consultants looking to add partner marketing as additional service.
The low cost and easy to start nature of Awin Access makes it very simple for agencies to encourage clients to launch a partner programme. Simultaneously, we provide training and insights to increase agencies’ knowledge and establish their expertise. Awin Access supports agency clients to grow their business in an organic way where they understand that they only pay on results.
The agency’s key objective is usually to improve traffic and conversion rate for clients. Affiliate partner marketing helps improve both of these with the range of publisher partners you can work with.”
Leveraging data and insights
Being a market leader in most segments, Awin is able to create and share valuable market and sector insights which showcases the potential in a given sector. Metrics include, amongst others, average active publishers, traffic, conversion rate, turnover, average order value and sector split by publisher type.
Sharing these insights helps demonstrate the value agencies deliver to clients by highlighting successes and catching any issues or strategies that could be changed. They also keep clients informed about trends, developments and new partnership opportunities. This type of transparency is critical and gives clients peace of mind that they’re in safe hands.
Maximise results in 2023
More than two thirds (68%) of respondents expect partner marketing to be more important in 2023, enabling them to achieve their marketing goals during the cost of living crisis.
With the growth requirements and business challenges in mind, Awin Access was designed with low costs to easily setup a partner marketing programme. Helping agencies in their journey to diversify and deliver positive ROI, Awin has launched the Awin Access agency pack. The pack was created to help agencies understand how partner marketing can help them and their clients to successfully venture into partner marketing. It highlights who we are, key insights and how we help agencies become experts.
Curious to learn more?
Do you want to learn more about partner marketing and how it can help you and your clients achieve ambitious growth goals for 2023? You can get in touch with Niels to setup a call, download the agency pack for free or visit the agency page and learn more.
