November Investor Webinar: Affiliate Will Grow Despite Economy

Stream this webinar here.

In recent years, top investment firms have begun investing more aggressively in performance marketing and affiliate. This is a strong indicator of the strength and vitality of our industry. Each quarter, Martech Record assembles an all-star panel of investment leaders to discuss the strengths and opportunities of this dynamic space. Our November 2 panel discussion featured: Bob Berstein: Managing Director, JEGI-CLARITY, Gil Ozir: Managing PaRTNER, Beringer Capital and Conor McKenna: Director, LUMA Partners

This event was made possible thanks to the support of our partner Awin

Each of our panelists underscored the strong fundamentals of the performance partnerships industry despite expected economic headwinds in tech and retail.

While the martech and adtech industries are bracing for a possible slowdown, our panelists expect affiliate marketing will continue to grow as a share of total marketing spending and in real dollars. According to our speakers, one of the brightest indicators is that the world’s largest brands are increasing their commitment to the channel to attract real, verified customers and other verifiable outcomes.

In an economic downtown, brands focus more on ROI and profitability for their marketing investments. The pay-for-outcomes nature of performance partnership makes it well-suited for such an environment. Other key growth drivers are the dominance and rising costs for advertising on social networks and Google. Affiliate often delivers a more advantageous customer acquisition cost than marketing on platforms like Google, Facebook, and Amazon. Investing in affiliate also helps brands diversify their marketing investments away from the tech oligopoly.

Our panelists pointed out that throughout the past decade, affiliate has avoided tech boom-and-bust cycles, growing at a solid and steady clip of about 10-15% per year. This makes the channel well-suited for an investment environment focusing on profitable, sustained growth over meteoric growth at any cost.

Each of our panelists agreed that as we have focused on ensuring brand-safe and fraud-free environments, CMOs are increasingly convinced of our value as a primary business driver. There appears to be growing recognition that, contrary to lingering perceptions among the misinformed, affiliate offers better anti-fraud credentials than many other marketing channels. After all, our metrics and measurement are based on real, verified customers and purchases.

Our speakers also noted that affiliate needs to quantify and communicate the positive indirect effects our channel drives for brands. Notably, we must share that an at-scale affiliate program builds high-quality awareness and consideration at no incremental cost to the advertiser. Affiliate has also been shown to have strong positive effects on metrics for other channels, including search and display click and conversion rates.

In addition to our strengths as an acquisition channel, our speakers pointed out an additional growth opportunity from leveraging affiliate to drive ongoing relationships with customers. By crafting programs that drive loyalty and reward partners for subscriber retention, we could help companies drive more profitable retention efforts.

Our speakers noted that hot investment areas include retail data co-ops and opportunities to enhance the effectiveness of retail media networks. We thank our fantastic panelists for their participation in this valuable session.

Future Martech Record Events:

November 16th 3pm EST: Liquidating goods in in a changing market. Join us to discuss this newly relevant topic. Register here.

December 6th, 3pm-8pm: Marketing Content & Commerce. Live event. New York City. Panel discussion and networking. Agenda and registration here.

On the Record

Be Informed on the Regular.

Receive news, premium content, and event alerts right in your inbox.