October 24, 2023

Launch your affiliate program today

Over the years we’ve seen affiliate marketing transform from a niche practice to a powerhouse in driving brand success. Today, businesses of all sizes are embracing the affiliate industry with fervor, with a staggering 40% of incoming brands partnering with Advertise Purple to launch their inaugural affiliate programs from scratch. What’s propelling this trend you ask? The answer is remarkably simple. Time and time again, affiliate marketing has proven itself as the most efficient and effective approach to marketing across diverse sectors. Need more convincing? Here are the compelling reasons why brands and marketing managers are increasingly turning to affiliate marketing like never before. 

#1 ⅓ of brands rate affiliate marketing as one of their top 3 revenue streams

According to a survey by
eMarketer, nearly 10% of marketers regard affiliate marketing as their primary revenue source, while over 30% list it among their top three earners. While e-commerce dominates revenue generation, it’s essential to acknowledge the significant overlap between e-commerce and affiliate marketing. It’s highly likely that a substantial portion of e-commerce sales is actually affiliate-driven, making affiliate marketing an even more significant player in revenue generation.

#2 Affiliate marketing is one of the primary revenue drivers across digital marketing channels

In the United States, affiliate marketing accounts for
16% of all online orders. However, within the realm of digital channels, this figure skyrockets to 30%. This means affiliate marketing stands shoulder-to-shoulder with paid search and social media marketing in revenue generation, but what sets it apart is the remarkable return on ad spend (ROAS).

#3 The average ROAS for Advertise Purple affiliate programs 10x

The most common payment structure for affiliate marketing is CPA, or cost per acquisition, which is a fancier way to say that you pay an affiliate only when they generate a sale. That being said, an affiliate might attract 1,000 new customers to your site and out of those 1,000 let’s say 100 end up making a purchase. You won’t pay that affiliate for the 900 other clicks on your site, you’ll only pay for the ones that resulted in sales. And that’s precisely why affiliate programs, on average, achieve $10 in revenue for every $1 spent on commissions. In contrast with other digital marketing methods, this is unheard of. For reference, a ‘good’ ROAS for
Facebook is 4x ($4 revenue for every $1 spent), 2.5x for TikTok, 2.8x for Instagram and 2x for search ads through Google

#4 Prices for digital marketing are on the rise

As prices for digital marketing soar, brands find themselves grappling with escalating expenses. The rise of social commerce has driven up costs substantially, with Facebook’s CPM increasing by 16% and Instagram’s surging by a staggering 55% over the
past two years. Average CPM rates are well above $10 on major digital marketing platforms, and this doesn’t even guarantee sales; it is just ensuring your ad gets pushed to 1,000 users’ feeds (and we all know everyone scrolls through the ads). In this challenging landscape, affiliate marketing offers a cost-effective solution to maintain a robust online presence without breaking the bank.

#5 Affiliate conversion rates are 3x higher than social media

When it comes to conversion rates, brands working with Advertise Purple boast an impressive average of 3.09%. In stark contrast, Instagram ads struggle with a meager 1.08% conversion rate so it’s simple to say that affiliate marketing is a superior spend for your money. It’s efficient, it’s effective, and it’s the direction most brands are heading in.
Regardless of your industry, your audience, or your products, there’s a place for your brand in affiliate marketing. Countless publishers possess the potential to reach expansive audiences, breathing new life into your brand. It’s time to take a leap of faith, invest in your brand, and seize control of your revenue. Launch your affiliate program with Advertise Purple today, and witness your brand soar to new heights.

Are you getting started in affiliate marketing or looking to improve your current program?

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