Guest blogger post from Tom Morgan of AffiliateFuture:
But for those with a survival mentality now is the time to take tighter control of the marketing budget and find a way to make it work with minimal financial exposure.
Few in the travel sector running online promotions are not familiar with affiliate marketing, in fact the sector has made affiliate marketing its own while other verticals look to travel for strategic counsel.
Despite all the negatives, a recession actually bodes well for affiliate marketing; since spend is directly proportional to revenue it shouldn't be affected by a reduction in the marketing budget.
The additional good news is that any drop in overall consumer spend will be more than offset by online's increasing share of total spend, a conclusion substantiated by IMRG’s recent research.
We’re working with our travel advertisers to help them drive more sales through the affiliate channel because it's cost effective and accountable.
Search solutions enable providers of package holidays, dynamic deals and individual holiday services to return up to date deals to consumers in response to their specific searches, a service that is growing in popularity as people determined to take a break seek out the deal most suited to their requirements and budgets.
And for their part our travel merchants are adopting a ‘high exposure, low risk’ strategy by upping the ante with new incentives for affiliates and higher than average commissions.
In short they’re replicating the pattern of behaviour of direct response channels in previous recessions. Take the last downturn as an example when total advertising spend dropped by 2% DM grew by10%, demonstrating the importance of accountability and cost effectiveness in challenging times.
Which is why in the coming year I expect to see the spotlight being turned on affiliate marketing as greater responsibility is placed on the channel.
There will be an increased focus on efficiency, quality of sales and delivering incremental revenue as every penny needs to be justified.
The networks and affiliates who can deliver value under this scrutiny are set for a bumper time.
Tom Morgan, managing director, AffiliateFuture