Brands using affiliate marketing saw a 38% last year according to affiliate marketing network LinkShare UK.
Highlighting their e-tail success in 2011, LinkShare UK says its network of 280+ brands has seen 38% year-over-year growth in sales, way ahead of the overall growth of e-commerce, which the IMRG tracks at 18%.
Despite the current economic situation, it seems online retailers have done better than their offline equivalents, with consumers continuing to shift their spend from offline to online, and the IMRG reporting in November that British shoppers spent more that £7bn online.
“It is now becoming outdated to see on and offline marketing activity as separate,” says Penny Mather, Marketing Director at LinkShare. “Consumers go on a non-linear journey when making a decision what to buy and may touch the on and offline worlds several time in a variety of ways before making a decision to purchase an item. As marketers and retailers become more savvy to this we expect them to invest in solutions that ensure their brand has a multichannel and varied online presence, including mobile and social sites, to keep them front of mind whatever their target audience is doing online. Affiliate marketing is well placed to provide these services and we expect a wide variety of brands to invest in the space in 2012.”
Emerging marketing trends for 2012
Mather has analysed the best performing sectors in LinkShare’s network to reveal four emerging trends that she believes will be key to retail in 2012.
The first is the growth of the luxury market, with luxury brands embracing affiliate marketing. Although consumers are experiencing a tighter disposable income, premium brands such as Karen Millen and Reiss have enjoyed a significant growth in spend during 2011, and luxury brands are recognising that special offers don’t necessarily need to be linked to low price. Consumers’ are choosing a branded, investment piece at the right price rather than just opting for the lowest priced item. Mather says affiliate programmes in the luxury sector can gain exposure in locations where consumers are actively looking for information or opinion to help shape their shopping decisions, while still protecting the brand.
The second emerging trend is the blurring boundaries between online and offline shopping, and a greater integration between the two. Mobile vouchers (m-vouchers), location-based services and geo-targeting brought the online world to the high street in 2011, with initiatives such as John Lewis’ free WiFi and QR code trial and eBay’s pop-up shop near Oxford Street. In a recent LinkShare survey of 1,000 consumers 41% said they have been prompted by a voucher or offer to purchase something online they would never previously considered buying, showing that buying behaviour can be influenced a great deal if the offer’s timing is right and it is well-placed.
LinkShare UK says marketers and retailers planning for 2012 need to look at the entire consumer buying journey, and affiliates help them to achieve this holistic view.
The third trend is social marketing, which really took off in 2011, and looks set to continue in 2012. Solutions have become available to help brands measure the value of their fans and the Return on Investment of their social marketing activities, and as more data that becomes available brands will find it easier to justify spending on social activity in 2012.
Finally, the fourth emerging trend is that marketers will increasingly test the water with new technologies, ranging from social applications and mobile technology to analytics that measure all of this. Mather says 2012 will be a year of experimentation, and that affiliate networks offer brands a test-bed for new technologies, such as m-vouchers, without requiring the budget commitments of a self-run programme.
