Affiliate Marketing- In Sync With Emerging Trends In E-commerce
The e-commerce industry in India is one of the fastest-growing in the world, due to accelerated internet penetration. The estimates suggest that the industry is expected to grow more than five times by 2026, taking the market size of 2017 as the initial marker. In 2017, the industry was at $38.5 billion, which is expected to grow to $200 billion by 2026, according to the Indian Brand Equity Foundation report.
The consumers’ interest in e-commerce has piqued the attention of brands. Consequently, social media apps and influencers have become attractive marketing avenues for brands.
Trends aiding online sales in 2020
In the year 2020, emerging segments such as Online Gaming, VOD/OTT platforms, and EdTech e-learning portals grew disproportionately, which were backed further by an increase in internet usage during last year’s pandemic. Additionally, a sudden shift to affiliate networks can be observed, which has been instrumental in delivering impeccable results to the tune of INR 350 crores across segments for advertisers. In the case of OTT and online gaming portals, brands received close to 1,50,000 registrations each through the Admitad Affiliate Network. Further to these numbers, The online space witnessed the growth of segments such as Health and Beauty, Digital Appliances, IT solutions, Fashion, etc., which recorded sales worth INR 12 crores, INR 144 crores, INR 14 crores, and INR 44 crores, respectively. The Health & Beauty segment registered 4X growth, while the Digital appliances, IT solutions, and Fashion segments underwent 54X, 5X, and 3.5X growth as compared to sales in 2019, respectively.
As observed, brands are diversifying their online marketing channels by personalizing communications & services. They are keen to explore the possibility of the D2C (Direct to consumer) method, where marketed products on e-commerce sites are sold to the end-consumer directly, helping brands maximize customer engagement with minimum spends. Moreover, the D2C model is reducing the influence of intermediaries or third parties, which is advantageous for brands to diversify their sales strategy. The synergy between D2C and affiliate networks is proving to be worthy for brands, as an affiliate is one of the key drivers in delivering online sales to brands.
How affiliate tools are driving conversions?
The promise of sales growth offered by the digital mediums has led to the blossoming of affiliate networks and marketplaces. Advertisers get to engage with online publishers like coupon & cashback sites, loyalty services, price comparison, bloggers, messenger groups, social media influencers, etc. It has created a win-win scenario with monetary benefits for both publishers and advertisers. Additionally, tools such as Browser Extensions, Messenger bots, Universal searches, dynamic monetization and linking tools, etc. have made it easier for publishers to reach out directly to their customers.
The integration of tech-enabled tools for publishers is the other catalyst for growth, as direct brand engagement with users is making them reap rewards. Be it expressed payments, which allowed publishers to withdraw earnings easily, or the Admitad Teleport tool that brought seamless journey, processes are getting automated, while improving the sales numbers. Categories such as affiliate stores and loyalty programs too are experiencing a rise in demand, as advertisers are looking at these as revenue-generating options.
Data analytics based on the shopping choices of consumers is allowing advertisers’ to make better marketing decisions. This way, users are accessing affiliate links that direct them only to products of their interest, and the redirection via these links remains uninterrupted. Furthermore, Admitad’s messenger bot on Telegram Messenger is showing how influencers and brands utilize the follower base to engage with users. The bot engagement converts normal links to affiliate links, and the user is then redirected to the product/advertiser/brand page to purchase the product, simplifying the overall shopping experience.
The evolution of the e-commerce industry indicates that the transformation didn’t happen in isolation. The digitization of the e-commerce and BFSI sector overlapped, diversifying payment options, while FinTech companies created solutions by taking advantage of the growing internet usage across the country. Therefore, the increasing number of online purchases and consumer activity is influencing marketers’ decision-making. With India currently having close to 700 million active internet users, the eCommerce space has the potential to dominate consumer choices as well as business operations across the country in the years to come.
