Measuring and understanding the true incremental impact of affiliate campaigns is becoming increasingly important. Performance marketing agency, Partnercentric, recently released their findings of their Incrementality Report for 2023. This report delivered some interesting insights helping brands optimise their affiliate programs for incrementality and maximise sales uplift.
The report examines data from a wide range of affiliate programs to provide valuable insights into driving incremental sales. We’ve summarised http key points for you to review below.
- Emphasised in the report is the importance of understanding incrementality and sales uplift in program reporting. It’s important to identify the true value of affiliate marketing against other channels and incrementality is the measure of how much additional revenue is generated by running an affiliate campaign compared to not running it at all. Brands must analyse incremental sales to determine the true impact of their affiliate efforts and optimise their strategies accordingly.
Incrementality Varies Across Industries and Programs:
- The report highlights that the level of incrementality achieved through affiliate marketing can differ significantly across industries and affiliate programs. Brands need to consider their specific niche, target audience, and affiliate partners to tailor campaigns that yield the highest incremental sales uplift.
The category that has emerged as the leading incrementality driver is Buy Now Pay Later (BNPL). BNPL emerged as a powerhouse in the affiliate marketing landscape, ranking highest in terms of the Incrementality Index Score (69.9%), closely followed by Loyalty/Rewards at 69.42%. The remaining Incrementality Scores are: Content/ Blog at 67.2%, Cashback scoring 55.81%, CPA/ Sub-Affiliate Network at 50.91% and finally Coupons/ Deals with a score of 50.24%.
Attribution Models and Measurement:
- Accurate measurement of incremental sales requires a reliable attribution model. The report discusses various attribution models and their impact on understanding the contribution of affiliate marketing efforts to overall sales. Properly attributing sales to the right affiliates can result in fair compensation and better partnerships.
The Role of Content and Creatives:
- Engaging and persuasive content plays a crucial role in driving incremental sales through affiliate marketing. Brands that provide affiliates with high-quality creatives and relevant content can increase their chances of achieving incremental growth. Collaborating closely with affiliates to align creative strategies can yield mutually beneficial results.
Leveraging Affiliate Relationships:
- Building strong and sustainable relationships with affiliates is vital for long-term success. The report highlights the importance of transparent communication and timely support to foster trust and loyalty among affiliates. Brands that invest in nurturing these relationships often see higher incremental sales as affiliates become more invested in promoting their products.
Considerations for Brands to Gain Incrementality Sales Uplift:
- Tailor affiliate campaigns to align with specific industry dynamics and audience preferences.
- Implement accurate and fair attribution models to measure the true impact of affiliate efforts.
- Invest in high-quality creatives and content to support affiliates in their promotional efforts.
- Prioritise transparent communication and provide timely support to build strong relationships with affiliates.
The Incrementality Report 2023 by Partnercentric showcased some interesting points for affiliates managers to consider when planning out partner segmentation and promotion strategies. Brands that adopt a data-driven approach, leverage industry-specific knowledge, and prioritise affiliate relationships can unlock increased value. By understanding the nuances of incrementality, marketers can forge stronger partnerships with affiliates, contributing to long-term success in the competitive world of affiliate marketing.
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