Why A Leading Retail Brand Cut Budget From All Marketing Channels, Except Affiliate
After initially realizing notable success from their paid and digital marketing,
including significantly increased brand awareness and loyalty online, our client (a leading retail brand) eventually started to experience diminishing returns from these channels, including more expensive keyword bidding for branded and non-branded terms and lower return on ad spend.
After a careful review of their attribution model, performance results and returns from all of their marketing initiatives, the client’s internal leadership team decided that budgets across all marketing channels needed to be either cut or significantly tightened.
The only exception to this was their affiliate marketing program. Since affiliate marketing is a pay-for-performance model with consistently steady returns, the client determined that it made the most financial sense to not cut funds from their affiliate program.
The client continued to realize at least a 6:1 return from their affiliate program when benchmarked against their paid marketing channels. In other words, for every $1 they were spent, they received $6 back.
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To learn more about the path many brands take from paid marketing to affiliate marketing, and the unique differences between these channels, check out the comparison chart in our resource titled, “A Marketing Evolution: Paid Social vs Paid Search vs Affiliate.”