As New Zealand experiences its highest inflation in 30 years and concerns over rising prices hit consumer sentiment and spending behaviour, Stuart McLennan says brands may need to take a more conservative approach to this year’s investments.
In this climate, affiliate marketing[1] – which generates up to 25 per cent of online sales for the world’s top brands – serves as a low-risk, high-return marketing activity that is performance-led, meaning brands only pay when commercial outcomes are achieved and sales are made.
Recently, we launched ‘Affiliate: The Resilient Revenue Driver’, a report examining how affiliate marketing can help brands drive and maintain revenue amid economic headwinds. Built with expert opinions from affiliate marketers at brands and publishers, the report highlighted a diverse set of revenue supporting affiliate marketing strategies that will help brands outperform the market.
Economic turbulence may be worrisome, but it is also the perfect time for New Zealand marketers to think bolder and explore new affiliate strategies that give them broader and more secure business resilience.
Inspiration and loyalty
The last decade has seen a revolution in shoppable advertising, with social media platforms establishing a culture of impulse purchases for instant gratification. Today, both media publications and social media influencers have embedded commerce firmly within a piece of content, rather than an add-on.
The benefits of compressing the time between consumer interest and conversion are obvious. Effectively, embedded commerce places a checkout within content, shortening the customer journey and allowing them to purchase at the point of inspiration.
Deeper affiliate partnerships will take this further, creating a fusion of affiliate models. Examples include adding coupon codes or buy-now-pay-later offers to existing content, or rewarding customers for sharing a referral code to their social circle, thereby building up consumer trust and loyalty.
Be empathetic
Today, brands need to be attuned to consumers tightening purse strings. Working with publishers that place money saving and rewards as central to their value proposition shows an understanding of the current economic situation. This will be more appealing to New Zealand’s budget-conscious consumers.
Empathy also extends to a growing emergence of ‘purpose-led’ sentiment among New Zealand consumers. Focusing on sustainability and social purpose will be key to attracting the conscious consumer. Brands should look for the winning combination of social consciousness, environmental protection and ultimately helping consumers manage their increasing living costs.
Ensuring the success of this comes from established trust between the publisher and consumer. It also comes from an authentic and committed approach by the brand especially given recent backlashes towards those accused of ‘greenwashing’.
Brands and publishers can leverage vouchers, cashback and loyalty programs to support consumers during times of economic hardship and causes they are aligned with. Advertisers that reward publishers for endorsing sustainability or brand value goals will bring them closer to the consumer than ever before.
New markets, new revenue
Expanding into new markets is a logical way to tap into new sources of revenue, but can be an intimidating prospect in uncertain times. However, affiliate marketing enables brands to cost effectively dip their toe into new markets.
Affiliate marketing allows brands to adapt established strategies used in their primary market, execute them rapidly and tweak them based on performance. Succeeding with this strategy, however, requires local market knowledge. This is why partnering with in-market publishers is essential for speaking to local consumers with the right strategy and messaging.
Working with a diverse set of publishers in certain markets will also help boost an advertiser’s customer reach and aid brand discovery. Together, advertisers and publishers can collaborate on affiliate strategies and work towards mutual business objectives.
Affiliate marketing is a resilient and low-risk marketing channel that will help brands during any situation. If marketers remain flexible and agile in these uncertain times, they’ll maximise online revenues now and beyond.
Stuart McLennan (pictured above) is senior vice president Asia-Pacific of Rakuten Advertising, a global leading affiliate marketing service provider.
[1] Affiliate marketing is the perfect marriage of marketing and e-commerce, making it an ideal channel for brands to reach consumers who have turned to online shopping. It forms partnerships between publishers and brands via affiliate networks; the publishers are able to monetise their audiences or content by earning commission payments for sales they refer to the brands they are partnered with.
Source How brands can build resilience with affiliate marketing | NZBusiness Magazine
