How Affiliate Marketing is Important for Digital Marketing

Right off the bat, affiliate marketing is not in any way synonymous with digital marketing, and this has been somewhat confusing among most publishers regarding such debate. 

 In actual fact, digital marketing
became rampant since social media obsession and the rave of smartphone
technology that came simultaneously to perfect the interface and user
experience of online platforms.

Establishing the difference between
affiliate marketing and
digital marketing is important in order to identify how the former has positively
influenced the growth of the latter in the past decade. Digital marketing has
decreased the use of traditional marketing to a fault, and have created multiple
options to reach customers efficiently, giving affiliate marketers and even
eCommerce retailers more tools and tactics to implement in increasing sales and
ROI. These tools include: e-mail marketing, social media marketing, PPC
campaigns, SEO/SEM, video marketing, etc., and these tools have saved marketers
and retailers a lot of costs in advertising and promoting products.

The infographic below shows the different categories of digital marketing:

Indeed digital marketing has proved its influence on
marketing, but how specifically have affiliate marketers utilized digital
marketing to showcase its significance?

Content Marketing over

TV commercials, newspaper advertorials, and door-to-door
marketing no longer interests affiliate marketers, and the influence of digital
marketing has continually grown on practical business owners because of the focus invested in digital marketing by affiliate marketers. 

is king” is not merely cliché, it is the future of sales management and
business marketing. 

Affiliate marketers are content creators, either through
email marketing, social media, or PPC advertising, and it is through content that prospects become leads, leads become customers. 

Furthermore, affiliate marketing has impacted digital marketing immensely to where prominent online networks
and search engines are now evolving their respective advertising platforms, e.g.,
Facebook ads manager, Google Adwords, Bing ad platform, LinkedIn ad platform,

Diverse online marketing strategies through content creation
have been embraced owing to affiliate marketing and the content created is not
only targeted at making sales but to also educate prospects properly on how a product or service of interest works.

Increased Revenue for Digital Marketing Agencies

The more affiliate marketers make use of digital marketing
agencies, the more revenue these agencies generate. Let’s examine some great
examples and reports supporting this claim:

Facebook made over 69 billion USD in ad revenue from its digital advertising
platform (Facebook ads manager) in 2019. In the same year, Google made 135 billion USD from its digital advertising platform(Google Adwords).  Average digital agencies in the United States generate over 17 billion USD annually from their B2B services to online marketers.

In summary, digital marketing agencies and social networks are making huge
profit from their respective advertising platform because with more people
embracing online marketing both for their practical business and strictly as an
entrepreneurial career, affiliate programs would steadily increase, and agencies
in digital marketing would yield more ROI, since it has become a confident strategy for
brand promotion and awareness.

Reducing Digital Marketing Cost for Product Vendors and Retailers

Affiliate marketers
have virtually taken away the burden of online promotion cost and expenses from
product vendors and e-commerce retailers.

Amazon’s eCommerce success is basically attributed to the – low-cost of commercial advertising, made possible by its affiliate program. 

The concept of affiliate marketing is to reduce capital investment and risks taken by product vendors and eCommerce retailers on advertising campaigns.

With this notion, eCommerce vendors and stores do not need
to worry about ad spend on running social media marketing campaigns or SEM
(Search Engine Marketing) , they prefer taking their chances with paying off affiliate commissions, because it holds more assurance of them selling more
products than if they were to run any digital campaign themselves, plus it saves
them time and effort.  

The point, therefore, is that a business owner, product
manufacturer, and retailer, expect higher revenue from digital marketing
through their affiliates, without them investing much marketing capital and labor.

Indeed we can’t fully attribute the breakthrough of
mobile marketing (digital marketing through mobile devices) to affiliate marketers, but
it has had some positive influence on the matter.

This has shifted the attention of online marketers to always include
the demographic of  customer’s who uses
mobile devices for accessing the internet
on regular bases.

This is not just mere coincidence, people find it easier to
read or watch contents with their smartphones without having to be in front of a
computer all day, and this has become an advantage for affiliate marketers to
utilize digital marketing tools and automation software that can put their
products in front of their audience through their phones, without having to
bother about how such tools can suit a desktop interface.

However, when it comes to mobile marketing, e-mail marketing
has proven to be a cheaper and better digital medium for acquiring leads or subscribers.
Before then, bulk SMS was the strategy employed by online marketers and commercial industries to sell to their preferred audience. Although this hasn’t changed, such practices are gradually becoming extinct since e-mailing features can now be automated in form of
autoresponders to reach a broader target, and 70 to 80% of individuals are
comfortable opening e-mails through their smartphone applications, which makes more sense
as to why mobile marketing has become easier.

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