“There are a multitude of opportunities for brands
In the early days of the Internet, affiliate marketing was limited to links to publisher sites, discount codes, and loyalty programs. However, in recent years it has rapidly expanded to include social media influencers, business development partners and paid media partners, and the expansion shows no signs of slowing down. This increased data complexity presents new challenges for the industry, and the traditional idea of an affiliate network may no longer be enough for many brands.
The Danes have certainly understood this and are bringing quantitative analysis to the industry. We spoke to Nicolai Mariegaard, impact.com’s Country Manager for Denmark, to find out how his partnership management platform has redefined affiliate networks to meet modern needs.
Mobile Marketing: What are the limits of traditional affiliate networks?
Nicolai Mariegaard: The problem is twofold: first, conventional networks are currently struggling to keep pace with monitoring hundreds of different affiliate channels; and second, these networks are unable to effectively track success. Marketers find themselves faced with an opaque system and are therefore unable to distinguish the value between different affiliate opportunities. Business is booming across Europe, but so is the competition, hence the cost of acquiring new customers is becoming more important than ever, and for some e-tailers this is almost their only competitive advantage. . The lack of transparency is a major obstacle here.
MM: What differentiates impact.com from a traditional affiliate network?
NM: Like the great management visionary Peter F Drucker says, “What gets measured gets better.” Marketers want certainty of success with their affiliate programs because this can be used to drive growth. And the impact.com platform can deliver that by measuring results with precision. The focus here is on quality over quantity: it doesn’t matter how many channels you follow if you don’t follow them effectively. When marketers have useful quantitative information, they are able to make better decisions and with greater confidence.
Transparency is essential in this respect. The impact.com platform is an access control solution connecting publishers and marketers, so we make sure that data flows between them in a useful way. For example, we can provide a fully end-to-end system for dealing with social media influencers that supports influencer discovery, program workflow, measurement and analytics. The tool is opt-in with a network of over 150,000 creators and also supports cross-platform collaborations.
MM: What type of success have your partners had with the solution?
NM: We recently established a fruitful partnership with Ellos, the Nordic fashion and lifestyle company. They were looking for a fully transparent platform while managing multiple channels, to enable them to grow their programs. With a modern affiliate network, their team is now able to assign customers to the appropriate channels and better understand their buying habits. With this type of solution, Ellos has achieved a boom in growth, as well as the highest affiliate channel revenue they have ever seen. They are now looking to advance their long-term marketing strategy by engaging with influencer channels through the platform.
So there is Lovehoney, Britain’s leading sex toy retailer. The internal team had experienced poor tracking in the past, so they found they were turning down potential opportunities because they weren’t confident they could measure results. By migrating to impact.com, they were able to automate a huge amount of work around assigning value to the right sources. Rather than emailing each partner individually, Lovehoney is now able to create, measure and analyze operations on a larger scale. This gives them the confidence to seize new opportunities and the flexibility to change strategy if necessary.
This is just the beginning, but we have also partnered with Tip Norskthe Norwegian National Lottery, to help them understand and optimize all the different traffic sources and customer journeys on their affiliate marketing channels.
MM: What do you think an affiliate network needs to be successful in the mobile space?
NM: 70% of mobile conversions now happen in the app. As brands look to increase app sales, we’re seeing a lot more mobile-focused partnerships.
First, you need to provide a first-class user experience. For example, deep links allow a customer to tap an affiliate link and be taken directly to the correct page in their app – only returning to the App Store or a webpage if they don’t. didn’t install it. Along with this, you need to deploy AI algorithms to detect fake activity.
Second, a good affiliate network should minimize the friction presented to new mobile partners during onboarding, which is improved by letting them connect directly to an API rather than sending them an SDK. I also think there is too much emphasis on the CPI. Instead, networks should allow partner payments based on post-install conversion events, such as reservations, sales, and subscriptions.
Growth is often inhibited because traditional affiliate networks lack the features businesses can thrive on, but there are a wealth of opportunities for brands that are willing to invest in the right medium.