Dan Cohen, dgm’s Research & Strategy Director, ably stepped into the breach last week for Carl Davis, and presented a compelling case for affiliate marketing in a recession. Of particular interest to the audience, most of which were retailers, was the benefits of the CPA based model and treating the investment as a cost of sale rather than a marketing cost.
10 years, during the last recession, affiliate marketing didn’t exist and the CPA model was neatly bundled into a discipline all of its own - direct marketing. But in a down turning economy where every penny must count, the merits of the CPA model are clear, and as CPM revenues inevitably start to decline, it is a model even larger publishers may wish to look at with fresh eyes. Dan also went on to discuss effective CPA, the cost of acquiring a customer through their online journey, and managing investment across online channels.
The next few months will see what really is going to happen with the economy. Conventional wisdom dictates that those who maintain their marketing budgets will come through, although the temptation to take a large knife to it will be irresistible to many. Affiliate marketing doesn’t have to be just about sales. Carefully planned, affiliate programs can be powerful a reinforcer of a merchants brand and a strategically important part of the online marketing mix.
If you haven’t looked at online marketing yet, now is the time to find out how it can work for you. Give our business development team a call or fill in our enquiry form
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