What Is Digital Affiliate Marketing?
Digital affiliate marketing is a performance-based marketing strategy that has become increasingly popular in recent years. Essentially, it involves a company (the advertiser) paying a commission to a third-party (the affiliate) for each sale or conversion that is generated through the affiliate's promotional efforts.
Affiliate marketing has been a major player in the e-commerce industry for quite some time now, with major companies like Amazon, eBay, and Walmart relying heavily on their affiliate programs to drive sales. But as the digital landscape has evolved, so has the way affiliate marketing works.
In the past, affiliate marketing was mostly done through email campaigns or banner ads on websites. However, with the rise of social media, influencers have become a major force in the affiliate marketing world. Influencers with large followings on platforms like Instagram and YouTube can promote products to their followers and earn a commission for any sales that result.
Here are some key statistics that highlight the importance of digital affiliate marketing:
- Affiliate marketing spending in the U.S. is expected to reach $8.2 billion by 2022, up from $5.4 billion in 2017. (Statista)
- In 2020, 73% of brands said that they have a budget dedicated to affiliate marketing. (Mediakix)
- According to a survey of affiliates, 81% said that they earn commissions from product reviews and recommendations, while 62% said they earn commissions through social media promotion. (Affiliate Benchmarks)
- In a survey of affiliate managers, 83% said that they believe that affiliate programs are important for their overall marketing strategy. (AM Navigator)
To participate in affiliate marketing, a company will typically set up an affiliate program through an affiliate network. These networks provide a platform for advertisers to connect with potential affiliates and manage their affiliate programs. They also handle commission payments and track conversions.
Affiliates can promote products through a variety of channels, such as their own website or social media accounts. They will typically include a special link or code with their promotions, which allows the advertiser to track any sales or conversions that result.
Overall, digital affiliate marketing has proven to be a valuable tool for companies looking to expand their reach and drive sales. By leveraging the power of influencers and other third-party affiliates, advertisers can tap into new audiences and generate valuable leads and conversions.