

The performance marketing industry, like all digital marketing channels, is undergoing rapid change as consumer purchase journeys become more fragmented and the online eco-system becomes more complex. How can the industry ensure it is viewed as a valued part of the online marketing mix?
Performance over-performs when it comes to value. As the IAB’s second annual survey into the value of the channel pointed out in January, advertisers spent £1bn in 2013 and generated £14bn in sales, so a £14 return for every £1 invested.
Yet the affiliate marketing model is still overlooked or not understood as the key player it really is within the marketing mix, something The Drum has been documenting since 2012.
But things are starting to change. Increased confidence, education and a move towards improved attribution modelling are all encouraging further spend in the channel.
The current problem faced in the affiliate marketing model is that in the planning stages of a campaign marketers don’t always value the content supplied by affiliates, ie why incentivise a consumer when they might have purchased anyway? And is the lifetime value of these consumers as good as those that took out the product or service without an incentive?
To integrate better into the marketing matrix, affiliates need to harness their historic and live data sets. They have access to huge sets of data, knowing what products and services consumers have purchased, from finance to telecoms. While there are obviously challenges, in order to evolve, this data needs to be commoditised and plugged into wider trading desks and RTB buys.