Five fascinating affiliate marketing forecasts for 2014

E-commerce is set to increase 12% by 2016 and online advertising is to grow to take a 31% share in advertising spend in Western Europe by 2016.

E-commerce is set to increase 12% by 2016 and online advertising is to grow to take a 31% share in advertising spend in Western Europe by 2016.

So what marketing trends will help drive this growth in 2014?

  1. Moving up the value chain When paying for performance, our budgets have a proven ROI which gives affiliate marketing a comfortable spot in the c-suite agenda but it is our responsibility to then educate these stakeholders on how they can drive the most effective ROI.

  2. Integration between online and offline It is interesting to watch the growth in integrated online/offline traffic and with consumers embracing social videos and offline (pay-per-call) which will connect the gap between online and offline, it allows advertisers to track the route consumers take in making a purchase. The increase in geo-targeting allows the advertiser to know exactly where the consumers are located, so they can send tailored online offers and vouchers, meaning a better understanding of the user journey.

  3. Understanding consumer journey and lifetime value In 2014, affiliate marketers will be able to understand the whole user journey, from their first engagement with the site to where they ended it. This allows advertisers to know to make intelligent, insight-based decisions, to become more effective at new customer acquisition.

  4. Consumer engagement trends will dictate pricing models. Advertising campaigns will need to incorporate CPE (engagement) and CPV (view) into the pay-for-performance mix to accommodate consumer engagement trends. It is the publishers’ responsibility to have the technology to accommodate the expanding and variable cost models to support this.

  5. A regulated industry Industry rules need to be in place for new entrants to ensure that the future for the industry is safe. This means integrating an official programme, with a regulated audit process for guaranteed compliance. This allows publishers to work closely together, affiliate marketing networks will build their trust with advertisers and credibility will be gained by advertisers.