To increase revenue, you need to attract new clients. And to do this, you need to reach a wider audience. In the case of advertising, your coverage is again limited by the budget that you have determined in advance.
In the case of partners, there is no such limitation and In classic advertising you first , moreover, through affiliate programs you can reach not only a similar audience, but also a fundamentally new one. From male to female and vice versa, from one price segment to another, as well as new regions and territories.
Also, with the help of affiliate marketing, it is much easier to reach a narrow, specific audience and give it the most targeted offer. Which would be very expensive to do through advertising. Since you will have to reach a huge audience in order to “catch” clients with a rare portrait from it.
2. “Warm” leads ready to buy In classic advertising you first
One of the main problems with traditional advertising is cold traffic. People see a banner, post or video, but are not ready to buy right away. To “warm up” such clients, you need time and money: you create chains of letters, launch retargeting, think over promotional offers – and even after all these efforts, there is no guarantee that the sale will be made.
Affiliate marketing solves this problem through trust. Companies, bloggers, and experts share your product recommendation with their loyal audience. People trust such offers much more than faceless advertisements. And this loyalty extends to you.
As a result, you get not cold clicks, but warm leads that are already interested and ready to buy. A recommendation from a real person removes unnecessary doubts and shortens the customer’s path from getting to know the product or service to buying.
3. Optimization of expenses In classic advertising you first
In classic advertising, you first make a payment, set a budget, and then see how many clicks, leads, or purchases you get. And the result is hard to predict even with very good analytics.
At the same time, the cost of advertising for business is djibouti business email list only growing. For example, in ecom in April 2023, the average cost of a lead was about 7181₽, and in March 2024 it rose to 9502₽ – Calltouch reported on this in its study . All this is due to the departure of some advertising platforms and, as a result, strong overheating of others.
And it will only go up, and not only because of competition and overheating of many channels. On December 11, amendments to the law “On Advertising” were adopted in the third reading , according to which 3% of quarterly income from online advertising aimed at Russian-speaking audiences should go to the budget. Advertising platforms are unlikely to want to lose their money, so promotion through the same Yandex Direct and paid media will become even more expensive for businesses.
In affiliate marketing, you pay only for the result – for the target action performed by the client who came from the partner. For example, for a purchase, registration, application. Economically, this is a more effective tool, with which you better control expenses and reduce the risks of empty spending. Every ruble invested works to achieve the goal.
At the same time, the risk of investing money in key insights from the research advertising and not getting results is far from the only one. There are bot attacks, “twisted” clicks and impressions, when it seems like there was an impression, there was a click, but there were no real people behind it. Also, in advertising, you can be attacked by competitors, for example, promoted by queries that include the name of your brand, that is, intercept your brand traffic and take customers for themselves. Also, competitors sometimes steal creative ideas and offers, making 1 to 1 the same offer for the same audience.
It is extremely difficult to imagine this in affiliate and referral programs. Even through an intermediary, you are in direct contact with the buyer, in a way that is invisible to competitors. The main thing is to choose an honest partner.
4. Increase loyalty In classic advertising you first
It is extremely difficult to retain customers and encourage them to make repeat purchases. Working with partners allows you to “touch” the customer where the brand cannot reach directly. The number of touches is growing: partners, referrals and influencers remind customers about you and they come back to you again and again. Payback, retention rate and LTV are growing.
5. Omnichannel
Omnichannel is more important than ever. The more uae phone number diverse touches you have with your customer, the higher your loyalty and the likelihood of a purchase.
Affiliate marketing is a great way to develop several new customer acquisition channels at once and reach more platforms. You can use a variety of partners, such as:
- bloggers and opinion leaders who share your product with their audience;
- review and overview platforms where users seek confirmation of quality;
- word of mouth, personal chats and live conversations;
- thematic sites and forums where the audience is already ready to buy.