By Elizabeth Hoover, Associate Director of Partners at DMi Partners
Affiliate marketing is gaining steam and shows no signs of slowing down. For eCommerce and CPG brands with global ambitions, international affiliate is an ever-more-critical initiative in revenue growth outside of the U.S.
For brands new to international commerce, there are cultural and regulatory challenges – for instance, the GDPR and the UK equivalent, the Data Protection Act, must be understood for advertisers looking to expand to Europe. Moreover, each country has specific traditions, holidays, payday schedules, and consumer behaviors that require advertisers to do their research before rolling out any campaigns.
That said, international affiliate can be well worth the effort. Keep these stats in mind as you evaluate its possible place in your business and marketing portfolio.
The vast majority of Canadian consumers check at least one online review before purchasing – and that trend is more pronounced with brands and products new to the market. For advertisers, a robust content strategy that can introduce brands and products in trusted editorial outlets helps establish trust and educate consumers in one fell swoop.
For many advertisers with aspirations outside of North America, the UK is the first overseas geo targeted for expansion. With that in mind, consider that four in five Brits have switched from well-known brands to cheaper alternatives as the cost-of-living crisis grows, showing that brand loyalty is at an all-time low. What this means for advertisers: it’s essential to have a commanding presence throughout a customer’s purchase funnel and incentivize customers to choose your brand over others.
Over two-thirds of adults in Australia, where eCommerce revenue is projected to grow by 50% in the next few years, have at least one credit card. Of these, 38% cite rewards as their top reason for enrolling. For affiliate marketers, this is a huge opportunity to work with CLO partners, which allows for limitless data-driven targeting to meet a wide range of KPIs.
About 55% of Europeans consider search engines to be their top source for pre-purchase information for comparing prices, reading reviews, and considering retailers when researching a product or service. It’s imperative to leverage content partners to ensure your brand is showing up on trusted, high-ranking SEO review and editorial sites.
Perhaps the most important stat to keep in mind is this: spend in the global affiliate market is projected to hit $15.7B by 2024, which is almost double what it registered in 2017 ($8.6B). Advertisers slow to build a global affiliate presence will face significant headwinds as competition increases. Those looking to expand should undertake the initiative as much more than a side project; it will require extensive regional research, strategic prioritization of the partnerships and geos that will help you get traction, and an understanding of the privacy landscape to carve a piece of the growing global affiliate revenue pie.