Like many things born in the 90s, affiliate marketing is now significantly older and wiser. Yet some still see it through the lens of its early beginnings – where a lack of insight and transparency, alongside limited partnership options and questionable effectiveness hampered the channel. Understandably, this led to it becoming a pariah. An unfavored channel in the marketing toolkit. But huge changes in tech are causing brands to reprioritize this underrated tool.

What are the changes driving this reputation revolution? We’ll explore them in more detail throughout this piece. But the headline is this: affiliate marketing has become data-driven, accountable, transparent, relationship-centric, and an incredibly effective discipline. Five years ago, affiliate marketing was growing roughly 10% of brand revenue. Today that number has nearly tripled, driven in large part by the huge opportunities opening up in industries like Finance, Retail and Travel.  

A Forrester study in 2019 showed that companies with mature partnership programs generally grow revenue twice as fast as their competitors, adding  28% or more to their bottom lines. It’s clear that affiliate marketing isn’t what it used to be. And there’s huge potential for this channel to become even more profitable over the next 5 to 10 years.

So, affiliate marketing has grown up. Here’s what that looks like.

An affiliate landscape transformed

First of all, the landscape has completely transformed. The traditional, lower-funnel affiliate partners, such as vouchers, cashback and points sites have now been fleshed out with an exciting range of modern newcomers. Partnerships with podcasts, influencers, large-scale publications (think Buzzfeed, GQ, Vice), and countless more tech-enabled channels have created an affiliate marketing revival. Importantly, automation and machine learning are making it easier than ever to implement, optimize, and track partner relationships. So that, for example, partnerships with influencers are now much more accountable than before.

Not only does this new mix of partnerships cover the lower funnel – it now comprises a significant part of the upper sales funnel, too. Plus, we’re seeing more brand-to-brand partnerships, where organizations are joining forces to speak to their shared customer base.

But above all, the biggest transformation comes down to a five-letter word. Trust. As trust in conventional marketing erodes – 84% of millennials don’t trust traditional advertising –  people are turning to channels that feel more reliable and relatable. Requiring the cultivation of real relationships and connections between marketer and consumer. And while this is a huge opportunity, it’s one that can be missed if you’re not working with the right partner.

Media opportunities have exploded

Another sign of affiliate marketing’s maturation is the variety of media it can now harness. From SEO-driven content and newsletters to mobile in-app and push notifications and co-branded landing pages. Whichever channels your customers are on, affiliate marketing has an effective, measurable way of reaching them with your message.

The audience journey through marketing touchpoints has transformed, too. In our hyperconnected world, the consumer journey can look labyrinthine. Gone are the days of the linear, awareness-to-action pipeline. The touchpoints your customer moves through to purchase will look less like a simple clickthrough on an affiliate banner ad, and more like receiving an affiliate email, being influenced on an affiliate review site, then shopping around for the best affiliate cashback/points offer. This might sound impossibly complex to plan and budget for, but the secret is knowing your customer well, and choosing the partners that will feel authentic and relevant to them.

From marketing theory to affiliate practice

Of course, everything we’ve discussed so far sounds good in theory. But how do you turn affiliate marketing from concept to concrete capital? Data is the answer. A data-driven approach will unlock your understanding of the partners that introduce consumers to your brand, and those which close the sales. It’ll expose conversion paths that aren’t fruitful and show you the partners that are driving true value. So you know where to invest for increased success over time.

As lucrative as affiliate marketing is, realistically it’s never going to be your only brand revenue. That’s why it’s crucial that you’re able to integrate it into your full marketing mix, eliminating silos, and ensuring a consistent strategic approach and messaging across every channel. All easily achievable with the right partner and the right technology for tracking and transparency.

And just who should you partner with, when it comes to managing your affiliate programs? Brands have three options, depending on brand size and resource. Affiliate networks bring together brands and potential partners, offering reporting tools and other resources to drive effectiveness. Another option is taking it in-house, which can be more time-consuming, but enables more control over the program. Affiliate marketing agencies are a third possibility. Agencies can offer a unified approach bringing together data, services, and tech for the best possible outcomes, allowing multiple teams and channel owners to collectively work together and thus moving away from a siloed channel approach. Do remember that none of these options are mutually exclusive. All three can work in unison.

Growing up and growing brands

Affiliate marketing may have had a rocky start in the early years, but the channel has grown up, and is growing revenue wherever it is well implemented, with the right partner in place to get the most out of this promising revenue stream.

Most brands accept they need to build out their first-party CRM database. But in the current climate, this is largely seen as a defensive move; a way to safeguard audience insight when third-party cookies make their much-discussed departure.

It’s true that first-party data does provide an effective safety net, and brands should certainly look at it that way. However, it also opens up a wealth of other possibilities and a chance to take ownership of the customer relationship, regardless of cookie deprecation. This opportunity is particularly exciting for CPG brands that have so far relied on retailers for customer insight, but really it’s something every brand should be doing.

The bottom line is, the world is changing and first-party data will help your brand change with it. An ongoing effort to maintain and grow first-party data won’t just protect your brand, it will also put you in a proactive position to stay ahead in the evolving landscape.

Connecting through an identity spine

In the past, there was a limit to what you could do with CRM data. You might be able to send emails to a customer, or potentially even an SMS, but that was about it. Now, in a world where ecommerce is exploding and everything is interconnected, the possibilities are limitless.

With first-party data, your brand can create a central identity spine, appended and enriched with second-party behavioral attributes. Every team within your organization can connect through this identity spine, enabling a more holistic media strategy. Your comprehensive media plan can encompass a wide range of channels, from social, search and digital advertising, to connected TV, email and direct mail—all built around CRM data.

Right now, distinct marketing teams like search and social are often disconnected, with their own tech partners, their own budgets and – most significantly – their own data sources. With first-party data you can address this disconnect. Everyone can operate under a standard key, such as a hashed email, so you can connect the dots between different departments—even outliers such as affiliate and direct mail. You can develop a cohesive plan where everything is trackable and data driven. It’s time to bring your marketing teams together and that means taking ownership of data.

Building out your own first-party data delivers:

Enhanced customer experience

If your teams work with distinct providers for individual marketing channels, and each one sources data from different places, it’s virtually impossible to control the customer experience. Valued customers and promising prospects are bombarded with repetitive, or even conflicting, messaging from multiple directions, quickly damaging their perception of the brand. When all parties can tap into a first-party identity spine, you have far more control over how many ads people are exposed to, as well as when and where they see them. First-party data puts you in control of communications to deliver more relevant customer experiences. When we talk about conscious marketing, these types of experiences are at its core.

Personalization opportunities

Unique messaging for each individual customer or prospect may not be a realistic goal, but marketing interactions do need to be as personalized as possible to forge strong connections and drive intended outcomes. First-party data gives you a far better understanding of your customers, enabling you to break out audiences into cohorts that can be pushed to activation platforms, so individuals receive more relevant and engaging experiences. This can be a gradual process, with your brand slowly building in a greater level of personalization over time.

Meaningful measurement

When your brand’s entire media plan is built around a common identity spine with person-level data, measuring the true impact and effectiveness of marketing tactics becomes far easier. Data across all engagements with a particular person can be used to analyze performance in real time. The powerful insights this uncovers can enable you to shift budget to more effective channels and tactics and optimize towards your chosen outcomes. You’ll be positioned to understand the impact of emerging channels—such as connected TV—as part of a unified media plan, rather than trying to measure their performance in silos.

The resurgence of lead generation

While the value of building out first-party CRM data is clear, getting started is often easier said than done. In a privacy-first world, where there is increased scrutiny of consumer data use, brands need to establish a proper value exchange for people to consent to sharing their personal information.

But there are still ways your brand can get going with this process. The recent focus on privacy has spurred a resurgence in lead generation practices as a way to accumulate customer data ethically, with full consent and transparency into what it will be used for. Possible entry points might include newsletters, or inter-brand partnerships with co-branded sponsorships and sweepstakes.

Some channels provide easier wins than others. Platforms such as Facebook and YouTube are trusted by their users, and lead forms in these environments can be pre-populated, making users more likely to share information. Embedded lead forms are becoming more prevalent in these spaces as the necessity of first-party data is increasingly recognized, with Google Ads lead form extensions being a prime example.

Ongoing effort is required

It doesn’t really matter how or where you get started with building out first-party CRM data. For most brands, it will be a case of learning to crawl and then walk before you can run. What matters is that there is an ongoing, evergreen effort to grow and maintain first-party data in a privacy compliant manner. This means implementing not just the mechanisms to collect that data ethically, but also the right tech partners to safeguard information in a way that complies with the relevant regulations.

We all know the importance of first-party data will increase with third-party cookie deprecation, but it shouldn’t be seen as a mere safety net to protect brands at that point in time. Building your entire, multi-channel media plan around a single identity spine, based on first-party CRM data, can allow you to take ownership of the customer relationship and deliver personalized, measurable experiences designed to drive your brand’s desired outcomes, regardless of the cookie situation.

The travel and hospitality industry has seen dramatic changes in the last few years that impact how and when people interact with brands. Historically, the industry has leaned on traditional marketing channels like print publications, linear TV, and radio to reach current and prospective customers. But that marketing strategy is less measurable and requires audiences to move to a separate channel for further research and consideration, often resulting in lower engagement rates and minimal attribution.

With the convergence of TV, digital and other channels—not to mention the rising customer desire for a seamless experience—marketers are under enormous pressure to meet customer demands, stretch every dollar, and justify marketing investments. Many brands are incorporating more data-driven channels like digital display and search into their marketing mix where new opportunities for addressability and outcome-based performance marketing programs are emerging. This next generation of the AdTech ecosystem presents more options for creating integrated experiences, especially for those brands looking to reach audiences at scale and achieve less-risky, measurable returns on marketing investments.

One example is the use of QR codes and CTV. Matterkind recently worked with a client in the travel industry to employ a campaign using unique QR codes displayed on CTV ads to provide a more streamlined jump to mobile. After scanning the QR code on a mobile device, the person is taken to a webpage with more information, where interest can convert to a booking. In that same 30-second spot, viewers were able to engage directly with the creative, providing an aesthetic travel experience they’d been longing for after two years of no travel. By creating a truly integrated, engaging experience with the ads they were watching, viewers got much more than they would’ve from watching a commercial on linear TV. This strategy positioned our client to be a better resource in the search for vacation options.

Extending the use of these emerging capabilities, additional work with this client helped to combine typically distinct channels to optimize outcomes and lower costs. By integrating data across two different teams, addressable and SEM, we were able to drive a more holistic and efficient campaign. We identified placements that would drive the most bookings across those teams and executed a low-risk, fixed-cost-per-booking model. This increased bookings more than 20%! The approach created a more robust ROAS, because the client paid a single CPA instead of a separate CPM for display and CPC for search. It also deduped for the overlap between partners in the same channel, allowing the client to re-invest the otherwise wasted advertising dollars to realize even more bookings.

Our client was able to see that our unique, integrated approach was really working for them and offered a high return on ad spend. By diversifying strategies and streamlining the viewer experience, we were able to act strategically to drive bookings and prevent any wasted marketing investment. At a time when travel and vacation plans seemed to change based on the news cycle, these more predictable approaches to customer engagement brought in more bookings at a lower rate.

To learn a few more ways marketers can take advantage of these new outcome-based trends and techniques, click here to get a copy of our Six Outcomes of A New Generation of Performance Marketing POV paper.

As we approach the two-year anniversary of working remotely, I find it increasingly difficult to remember the routine of my days before the pandemic. Back then, a 40-minute train ride marked the line between online/offline hours, and there was a clear, physical separation of office and home. I had two versions of myself—the “Work Larene,” and the “Mom/Home Larene.” When I was in the office, I could 100% be “Work Larene.” I could focus solely on the business and tasks at hand, with the exception of your typical distractions from the hustle and buzz of the office. I didn’t have to think about the laundry, the grocery shopping, or who was doing school pick-up. That was all for “Home Larene” to figure out later.

I was nine months pregnant and waddling around the office right before we started remote work. It wasn’t much of a secret that I was a mom, but it was pretty easy to keep my work and mom life happenings separate (I had my baby just three weeks into the first lockdown March 2020, but that experience is another story itself). With this new reality of my home and office being one, the definitive lines of “Work Larene” and “Home Larene” no longer existed. But it was only going to be temporary until I returned from maternity leave…right?

I did not anticipate returning to work later that year virtually. Returning to work after maternity leave is already challenging, and even though this was my second time around, coming back in this capacity brought on a flock of new feelings and emotions.

For me, being behind a screen wasn’t a shield I could hide behind, but instead a door that opened up into my inner life. I had to show up as my whole person everyday rather than having a “Work” and “Home” self. How could I possibly manage back-to-back meetings with a crying infant, a toddler, and a new puppy, all in the background of my video calls?

I eventually learned that these things weren’t something I had to be ashamed of. My colleagues were more empathetic than I presumed and were likely dealing with their own version of #momfails. My coworkers, both men and women alike, had their own lines between “work self” and “home self” blurred and were experiencing some of the same challenges. I feel fortunate to work at a company that embraces my whole person and knows sometimes a dog might jump on my lap in the middle of a conference call.

Once I was able to come to terms with this idea of being my whole self, the new hybrid workplace provided a great opportunity for significant time re-allocation. I was able to take multi-tasking to a whole new level and throw a load of laundry in during my lunch hour while also sneaking in a quick hug from my son. If I’m being fully honest though, there was a lot of guilt for a while (mostly self-inflicted), for not being in the physical office. Worried thoughts race through my head about being on a “mommy track” career path, but I’ve come to realize that I am extremely grateful to be part of an inclusive culture. Women, men, and other caregivers in my company, are given the space to excel and thrive. This new ‘workplace’ gives me the flexibility to decide what is best for my family, my life, and my career. I recently listened to an International Women’s Day panel, and something mentioned there really resonated with me—that in this new hybrid normal, the office can be thought of as a resource, rather than a requirement.

Whether you speak to one of my colleagues, a friend of mine, or my parents, they’d likely say the same thing: She’s always saying “Sorry.” Heck, even if you bump into me, you’ll probably still get an apology. And no matter how many times I’m told, or how many times I walk past a hardcover copy of Rachel Hollis’ Girl, Stop Apologizing in Target, it will be a while before I’m able to stop. Somehow, it’s become one of the few things I’m not sorry for… because I’m working on it.

My fear of confrontation and conflict has masqueraded itself as an extra layer of politeness. The irrational fear of being called out as unknowledgeable, bothersome, or just downright annoying in past roles paralyzed me from effectively communicating my needs. I thought it would magically end after high school, but it simply fed on my anxiety and transported into the workforce with me. I had psyched myself out or hyped myself up to ask the simplest questions, hoping to save myself an hour or two of Googling feverishly for answers. Most of the time, I came out of these situations unscathed, scolding myself for even hesitating in the first place. However, occasionally, I had been met with frustration or condescension that could easily unravel months of progress and send me back to my island of solitude.

I can address a full theatre any day of the week without batting an eye—but put me in a room of four people that I work with, and I’m shaking in my sneakers. Why? I can’t see individual faces in that dark auditorium. There are no individual reactions for me to watch judge my words as they fall out, leaving me scrambling to pick them up off the floor. But in a room of my colleagues? Nah. I can feel the water start to fill my eyes, and the sweat start to curl around my freshly pressed hair.

While the pandemic carried so many negative feelings, I remember feeling one sliver of positivity when we were told we were going remote for the time being: All of my interactions were going to be virtual. While some find the disconnection from being in-person isolating, I find relief and room to breathe. If I have a question, I can use email or chat boxes and then switch tabs back to my work projects, no longer nervously standing beside someone’s desk for an answer. If I present to a group, I can just look at my presentation and no one else! And if I have a rough time and get nervous, no one can see me [literally] sweat. And all the while, I’m unconsciously building a rapport with my colleagues as someone confident, eager, and get this: Knows when to ask questions. I’ve realized I can take pride in being a student of my profession. I can let the secret out that I’m still learning and enjoying every moment of it. I can love my career and be good at it without having it all figured out. And most importantly, I can do all these things without being considered unknowledgeable, bothersome, or downright annoying.

It took me years to realize that the frustration or condescending manner I was afraid to receive wasn’t even about me. It took me years to realize that I am, in fact, not a failure, and just simply a human being who had some learning to do and some confidence to build early on in my career. It took witnessing other women navigate their first design job for me to realize that other people face the same fears.

As I grew my team, these realizations only strengthened who I could be to others as a manager and a colleague. I realize that I can combat every inhibition I’ve ever felt in a work interaction by reaching back and swinging the door behind me open, letting others in on the secret as well. I understand the impact of making a deliberate effort to make others comfortable in their learning experience. Every day I make a serious effort to let others know that no question is too small and that we’ve all been at the beginning of the journey before. And most importantly, I let others know that I’m still learning, too.

With the approaching elimination of third-party cookies, some marketers may be feeling the pressure. An asset we’ve relied on for years to support and enable our data collection has now been pulled out from under us—but is it really as bad as it seems? Cookies have become the default solution for many when it comes to obtaining insights, but they can also be inaccurate, frustrating to individuals, and ineffective at measuring performance. While third-party cookie phase-out may seem like a catastrophe, it’s actually an opportunity to harness the power of conscious marketing.

Conscious marketing is both about taking an intentional, respectful route, and also holding your business accountable. Collecting data that’s necessary, rather than available, for example, or being honest and transparent in your communications. It’s about keeping both company goals front of mind as well as connecting in an authentic, relevant way with your audience. Conscious marketing also creates an excellent opportunity to reduce costs through more welcoming and specific messaging, by delivering the right message to the right audience.

The depreciation of third-party cookies may seem like a loss, but in many ways, is a gain to marketers everywhere. Learn more about our thoughts on conscious marketing in this blog post by Erica Schmidt.

In March of 2020, Gartner’s ‘Manage Marketing in Uncertain Times’ study found that 66 percent of people agree businesses should take a key role in solving issues in society and culture. And 57 percent of people prefer to buy from companies with whom they have a personal connection or relationship. With high expectations being placed on the businesses and brands people interact with, are companies doing what they can to meet the challenge? Is marketing playing the role it can in developing personal connections and enduring relationships?

Let’s face it, Marketing as an industry has not kept pace with society and culture. It is a reactive and insular craft that is often looked at as an expense vs. a builder of long-term relationships. The current generation of marketers have found themselves in a time where they can’t escape the call for leadership and honesty from the people they serve on behalf of their brands. They need to be aware of what is going on around them and respond accordingly. It’s time to embrace and practice Conscious Marketing. Be relevant, have a purpose, and remember the words you use matter. Sounds kind of like the building blocks to an enduring relationship, right!?

Be relevant

People don’t view themselves as “targets” or “prospects” and they certainly don’t view themselves as being in a “funnel.” They approach experiences today demanding control of the environment and expecting ease of use. It should come as no surprise that 90 percent of people find communications from brands that are not personally relevant to them bothersome (Infogroup, 2019). In fact, 4 in 10 millennials say the most important thing a brand can do is ensure advertisements are relevant to their interests (Infogroup, 2019). So that means don’t message me with an ad for a product I already purchased, or product I will never buy, and but instead make an attempt to provide context in the forms of communication you take.

Have purpose

As mentioned above, people are expecting businesses to take the lead in solving the challenges facing society. We are witnessing brands committing to support communities suffering from COVID-19 and contributing to the fight to end police brutality and systemic racism. There are also a number of DTC brands that have taken up the mantle of sustainability – think clothes made from bottles or profits that save the oceans. While these are higher order purposes that resonate with many people, there are smaller steps that brands can take that are both genuine and demonstrate their commitment to the people they serve. It starts with acknowledging your customers or constituents as people. Instead of sending an email to your customer saying you’re standing with them, look at what you can do to make change happen – or ask them how you can help.

Words matter

If we’re being relevant and purposeful, then the words we use matter. The words we use can give people joy or cause pain. I previously eluded to marketing terms that don’t recognize the people we are communicating with as people. If we did, would we be “profiling” them? It is time for marketers to awake to the fact that the words we use carry meaning. In this era of Conscious Marketing, we must recognize that some of the words we use are received by people as microaggressions. In order to ensure that our communications are authentic and honest, we need to reconsider the terms we use in our everyday. In 2019, our team at Kinesso and Matterkind made a decision to move away from the terms “whitelist ” and “blacklist” and we now refer to site lists as “allow” and “block” lists. While our actions signify our intentions, so do the words we use.

Conscious Marketing can truly modernize marketing. But there’s much more we must do to make it happen:

1. We must take a thorough look at the partners we work with to ensure their values align with our employees’ values, as well as those of the people we serve;

2. We must educate tomorrow’s marketers on how they should approach their craft with a deeper appreciation for the people they are reaching; and

3. We must be champions of diversity, as Omar Johnson wrote in The New York Times (June 14, 2020), “Inside your company walls, you need to hire more Black people. Period.”

Taking these critical measures are guaranteed to lead to a successful practice of Conscious Marketing that is relevant, purposeful, and mindful of the words we choose to use. Now is the time for leadership and action, therefore, focusing on doing right by people enables us to deliver real results and inspire considerable impact.