Affiliate Marketing: The Right Channel in Recession Times?

Carmen Martins 10/21/2022

Why it's worth betting on affiliate marketing even in a crisis

Table of contents
  1. 5 reasons why you are crisis-proof with affiliate marketing
  2. These softwares support you in affiliate marketing
  3. Conclusion: Crisis-proof with affiliate marketing

With the ongoing pandemic, the war in Ukraine and the associated inflation, both consumers and companies are looking uncertainly towards the turn of the year. Revenues could now be looked at more closely in the marketing departments of many companies.

However, no reason to hang your head. In order to be successful even in times of crisis, channels such as affiliate marketing can support: "Affiliate marketing will continue to grow and offers a new opportunity for e-commerce companies as the cost of living crisis reduces consumer confidence," says Andreas Sasnovskis, Managing Director of the affiliate network Webgains.

Why your with affiliate marketing crisis-proof can be, we reveal to you in this article. We also show you how you can implement this with suitable software.

5 reasons why you are crisis-proof with affiliate marketing

Online shopping is popular

A recently published white paper from Webgains shows that online shopping worldwide in 2020 has increased by more than 25 percent. Even two years later, the area is stronger than ever. According to the US investment banking and securities trading company Morgan Stanley, the global e-commerce market could rise from around 3 trillion to 2026 to over 5 trillion dollars.

Affiliate marketing has grown more and more

As the e-commerce market grows, so does the affiliate channel. According to a survey by the British online marketing agency IAB, the performance of affiliates during the Corona pandemic net increased by more than 56 percent. It is a channel that is not only resilient, but also has the ability to continue to grow in such times.

Payment for Performance

In contrast to online marketing channels like PPC, merchants in affiliate marketing only pay their partners when a sale occurs at their end. A large portion of your expenses will only be accounted for as a share of your commission. This means that commissions to the publisher and the network are only incurred for you as an advertiser when a valid sale has been mediated. This is a major difference from other popular performance channels, such as PPC, where spending is independent of whether a sale is made or not.

Buyers are looking for discounts even more

"We live in a consumer society and are unlikely to stop shopping online soon. What will change in the face of inflation, however, is how much money we will spend in the future. As a result, it is highly likely that buyers will be looking even more for discount codes and coupons, to lower the price of their shopping cart. For those of you who want to use affiliate marketing in conjunction with coupon sites, this is a promising opportunity: this form is one of the most popular in affiliate marketing.

Find new target groups faster

With affiliate softwares, you can spread your portfolio widely to reach new target groups. This applies both in geographic terms, as well as in terms of interests and purchase history. This way, you may find the customers that match your product faster and more flexibly.

These softwares support you in affiliate marketing

Before you want to start affiliate marketing, it makes sense to search for the software that is suitable for it. On our review platform, you can find a variety of affiliate networks. One of these is Webgains, which we will now introduce you to in more detail.

About Webgains

Webgains has been one of the leading international affiliate marketing networks since 2005, establishing connections between advertisers (e.g., online shops) and publishers. More than 1,850 customers benefit from the services to generate global e-commerce revenues. With over 250,000 tested and licensed publishers, partnerships can be formed in Webgains' extensive international affiliate network. Since 2006, Webgains has been part of the listed ad pepper media International N.V.

The features and benefits at a glance

As an affiliate network, Webgains offers connections to relevant publishers as well as a tailored approach to account management, maximizing revenue, and increasing brand awareness.

Webgains invests equally in talent and technologies, thus providing a blend of human and artificial intelligence. The AI-driven tool suite includes features such as Affiliate Discovery, Product Discovery and Smart Commissions, thus making smarter connections for advertisers and publishers. The goal of the affiliate network is always to create smart connections for advertisers and publishers and to enable customers to gain a market-leading position as well as to maximize their revenue and ROI.

Whether you are new to affiliate marketing or are more experienced with an existing program, Webgains has some helpful affiliate guides that are great learning resources. You can download them for free from Webgains here.

Other softwares for affiliate marketing

If you would like to go a little deeper into the software search and need an overview, then feel free to browse our Affiliate Networks category. For example, these softwares are included:

Conclusion: Crisis-proof with affiliate marketing

The year 2020 was a crucial one for the affiliate industry, as it brought a strong online growth and many accelerations in e-commerce. And the affiliate marketing channel continues to be seen as a cost-effective and diverse way to make the most of your marketing revenue even in times of crisis. From cashback and reward sites, to bloggers and flexible tech solutions – affiliate now works in a variety of ways, so you can apply it flexibly.

“It's not a question of why, but of timing when you should introduce a partnership program, and the answer is: now!” Andreas Sasnovskis is also convinced: “The affiliate channel represents an effective and risk-free marketing method that allows our customers to reach an audience that is broader and more diverse than a typical paid search or social campaign. Affiliate marketing will continue to grow and offers a new opportunity for e-commerce companies.”

Carmen Martins
Author
Carmen Martins

Carmen ist Content Marketing Managerin bei OMR Reviews. Zuvor hat sie Content-Themen für einen Lebensmittelgroßhändler verantwortet sowie einen MA in Public Relations absolviert.

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