As we continue to learn, every month in 2020 is different from months years prior. While August is traditionally a big back-to-school shopping month, particularly in the U.S., we saw declines in Apparel and Education categories between July and August 2020 as consumers were still unsure about their future back-to-school plans (e-learning at home or in-school).
Additionally, across the globe, we are starting to see more consumers venture out, whether it’s to eat at a restaurant or take a trip closer to home.
This was certainly reflected in some of our clients’ affiliate programs.
Those in the food and beverage segment saw a 15% decline in revenue whereas those in the entertainment and recreation space saw a 45% increase in revenue.
Slight Revenue Increases
Looking at our client data between July 2020 and August 2020, we saw a slight increase in revenue (up 3% Month over Month (MoM). The slight revenue increase was primarily driven by the Entertainment and Recreation and Health and Wellness categories.
While revenue was up 3% MoM, we saw commissions decrease by 7% MoM as placements shifted to accommodate back-to-school changes and toward a focus on strong promotions.
The loyalty publisher vertical continues to drive significant increases MoM, with a 34% increase in revenue.
As brand loyalty and trust is down, with 75% of consumers trying new brands in the U.S. alone, we are seeing consumers continue to “trust” affiliate partners, especially in the loyalty vertical.
Client Performance Data: August 2020
Overall, August “wins” for Acceleration Partners’ (AP) clients globally included: testing new content partners and incentivizing consumers to increase AOV with specific coupons or rewards.
- Brands in the Health and Wellness vertical continue to see significant growth (up 21% MoM) as consumers continue to focus on finding new ways to exercise at home or try new sports or activities. Pairing the demand with other incentives and with specific affiliate partners drove remarkable results, including a record-breaking number of new customers and increasing market share from competitors.
- Brands in the Business Solutions vertical were up 55% in revenue MoM as different parts of the world are re-opening offices and/or preparing for school to start.
- Revenue from loyalty partners was up 34% MoM while other publisher verticals were down as consumers continue to become more budget savvy with incentives to shop online. With brand loyalty down globally, consumers are comfortable shifting to other brands with the better deal or incentive than they were before.
Month-Over-Month Analysis of Acceleration Partners’ Clients
Month-Over-Month Publisher Segment Analysis
Up Next … September 2020 Client Data
Next month, we’ll share our client performance data from September 2020 (comparing to August 2020).
Questions about this data or the strategies other brands are finding successful? Contact our team!
Kelly Ground is the Associate Director of Strategic Accounts at Acceleration Partners