7 Trends in Affiliate Marketing for 2018

While local nuances are essential for any advertiser wishing to penetrate new territory, we highlight the key trends that apply across all markets regardless of location. In fact, going further, it is probably fair to say that it is "uniquely unique". All digital advertising models have their individual characteristics, but what separates affiliate marketing from the rest is the fact that there is no universal template that is deployed globally to scale. When we compare it with the more uniform models offered by gigantic advertising platforms such as Google or Facebook, we can see a crucial difference. Whether you pay Google to appear on search lists in Brazil or Australia, the model is fundamentally the same. On the contrary, affiliate marketing is inextricably local. Instead of transposing the model to other ecommerce cultures dictating their own terms about that environment, affiliate marketing tends to grow organically from the specific conditions of the local context. The character of each market is derived essentially from its constituent parts; its affiliates, brands and consumers. Affiliate marketing is a unique marketing tactic. These types of local nuances are an essential perception for any advertiser or publisher that seeks to penetrate new territories successfully.

1. Smartphones have radically changed the way we do tracking and attribute value.

It's been 10 years since Apple launched the first iPhone, and at that time these devices have completely changed the way we access and interact with the internet. For the world of affiliation, the consequences have been immense: network tracking technologies have been forced to adapt, advertisers and publishers have had to revise the fundamental structure of their sites, and consumers have shifted their shopping habits to a world "always connected".

2. The importance of global consumer events

Black Friday is here to stay, and with it comes the annual explosion of discounts and online sales, which members are ready to help promote. Historically, the event resonated only in a few markets beyond the US, where it originated, such as the United Kingdom or Brazil. However, last year each and every one of the markets around the world saw an increase in the profits of that day, with a global average growth of more than 50% since 2015. The adoption of such events around the world is an emerging trend that we hope will continue without pause.

3. Brand safety and self-regulation

Brands from all over the world are looking at their advertising expenses more than ever. The robust affiliate productivity model ensures the availability for advertisers of a sober and efficient mechanism to boost sales transparently. Combine this with a proactive self-regulatory practice that has anticipated potential ethical pitfalls, and we have a model that has dodged the kind of controversies that have sunk other channels.

4. The rise of influencers and the measure of their value

The channel has warmly welcomed the current influx of affiliate’s influencers. However, while the desire to work with them is a persistent theme throughout the world, finding a means to measure and reward their efforts remains difficult in a last-click reward model. It is clear that for these spontaneous talents to maintain their interest in monetizing their content through affiliate marketing, the model must be adapted to provide them with a viable income.

5. New editors emerge constantly

Innovation is the lifeblood of the membership industry. A constant flow of new business models and ideas entering the channel means that it evolves constantly and keeps pace with the latest digital trends. Scanning our local markets we have unearthed some authentic gems that promise a disruption of the status quo -from Spott, an app that synchronizes with the television program we are watching to present the products shown in it, to Snatch, a mobile augmented reality game in which players snatch virtual plots and win prizes to protect them until the end of the day.

6. Can discount coupons boost the value increase?

An issue that has dodged affiliates linked to coupons since its inception, and has been formulated for all of our markets. Probing more deeply into the data, it is revealing to find out that most of the claims about these sites turn out to be manifestly false, and that depending on our objectives, there is a good amount of incremental value to collect from associations like these.

7. Delivery of lifetime values ​​in the affiliation channel

The affiliate industry has come a long way in its more than 20 years of history, and the concept of "value" has evolved along with it.

Only clicks, sales or profit targets are no longer enough for brands, and with the increased data exchange we are more able to assess the value of those conversions.

Our final topic of the report inquiries into the future of affiliate sales analysis and how, for brands at the forefront of the industry, understanding the lifetime value of affiliate-driven consumers gives us a true perception of their association ( partnership) more effective.

Given that the global affiliate industry has an estimated value of 12,000 million pounds, it seems correct to try to provide a global view of its operation.