Despite the challenges that have impacted the channel this year, affiliate marketing continues to be a key attribute to revenue growth with the performance channel ranked number one for customer acquisition according to Forrester Consulting’s commissioned study with Pepperjam.
The US-based affiliate marketing technology platform commissioned Forrester to explore over 170 executive-level marketers’ perceptions of affiliate marketing and the value it contributes to their overall marketing objectives.
Overall results showed that affiliate marketing is ranked as the number one channel for customer acquisition and is relied upon as a proven and critical revenue driver. Of marketers who currently leverage affiliate as part of their marketing mix, 20% ranked it as their top channel for customer acquisition followed by paid and organic search (16%) and display (15%).
Survey respondents also indicated that they valued the affiliate channel when it came to pricing flexibility and felt the channel offered greater transparency and brand safety as compared to other paid channels.
These findings emerge at a transitional time when the industry’s enlightened marketers are refusing to settle for the status quo and instead prioritising affiliate as a central growth strategy.
“The cost for access to Facebook, Instagram and Google audiences continues to increase. Marketers need a scaled subsidy to optimize the overall unit economics of their businesses and affiliate marketing is delivering on that critical need,” commented Matt Gilbert, CEO of Pepperjam.
“The combination of diversified scale delivered through innovative technology, and outcome-based pricing models is the blueprint for creating operating leverage and turning advertising into a profit centre. Affiliate marketing, when done properly, is playing a starring role in solving for the modern marketers’ dilemma.” Gilbert concluded.