Affiliate Marketing Goes Mainstream

By effectively connecting consumers with branded products and services online, affiliate marketing has powered large sectors of e-commerce through various forms of online advertising and SEO tools, as well as the extensive use of Web2.0 blogs, forums and social networks.

Affiliate marketing is growing rapidly across many sectors that now include financial services, healthcare, publishing, travel and entertainment. The affiliate industry is continuing to expand during these economically difficult times. Affiliates are expected to spend US$2.3 billion in the US alone this year according to Forrester Research.

Branding in the brick and mortar world builds trust, identification and loyalty with consumer groups. As these move online, the models pioneered by Amazon, eBay and other successful online merchants are being adopted by vendors in many mainstream sectors with the affiliate channel opening up new opportunities every day.

Being part of an online community from groups on Facebook or LinkedIn to Twitter feeds, and interacting with its other members, builds trust that can — with care and over time — be converted into sales.

The explosive growth of social networks has made them the hot, go-to place for online marketing. They do however need to be part of, and integrated into a broader marketing mix. The same holds true for affiliate marketing campaigns.

Driven by the recessionary need for value, the renewed focus on ROI has made both social network and affiliate marketing highly attractive lower-risk, lower cost propositions.

Nevertheless, due to the unregulated frontier mentality of these emerging media, the risks for companies can be considerable. That is a lesson certain large consumer brands had to learn the hard way through negative viral campaigns launched against them, which they were unable to contain.

Affiliate marketers and networks are making so much money, merchants of all flavours would be foolish not to pay attention.