Those who work in affiliates will tell you that the industry is nothing like the Wild West it used to be. The days of the relentless pursuit of the last click conversion are long gone. The new debate is to what role each of the three constituencies, media agencies, technology companies and affiliate networks, should play.
In the 10 years that I’ve worked in digital media the industry has cleaned itself up. Once the black sheep stuck between older siblings paid search or display and younger siblings in video and programmatic, this middle child has finally found its own solid identity.
Indeed, the affiliate business is now almost unrecognisable. It has evolved to a much more sophisticated, value-focused and all-round integrated discipline. However, I am enough of a realist to say that we have not yet arrived at “affiliate panacea”. We are in a transitional phase, with innovation levels higher than ever before. For everyone who works in the space this truly is an exciting time. Of course with innovation comes a level of disruption. In this case (positive) disruption is affecting the dynamics between - and the roles played by - networks, agencies and technologies.
The role of the network – whilst in many cases an important one – is being questioned as the industry moves from a proposition based mainly on volume to one a based increasingly on value, clever use of data and, of course, integration. Thankfully, the majority of the industry believes running activity in isolation from other channels, with hundreds of publishers, remunerating based on last click and disregarding brand safety is an outdated and rudimentary approach. As it should be! We need to build digital “ecosystems” not silos of channel execution. This approach just doesn’t work anymore and I am happy to see all of these antiquated approaches dying off.
Just like paid search, affiliate marketing used to be a “bolt on” that required a highly specialised skillset to deliver. Obviously, no discipline or channel should merely be operated as a “bolt on” to the rest of brand marketing activity and that mind-set is happily disappearing. However, it does remain true that most digital disciplines require highly specialised skills in planning, management and optimisation. But these skills are dispersing and moving outside the traditional set-up.
Due to changing service and management models the industry is no longer beholden to the networks. The ‘one-size - fits all’ model - with a clear management ownership role for the networks - is being questioned as brands move away from focusing solely on conversions and volume to a broad range of areas including brand positioning and cross-channel value.
Historically, the programme and publisher management ownership was the domain of the network. From the inception of the industry this has been de facto. These two areas, “programme” and “publisher” management, are increasingly moving to agency and in-house ownership. They are the natural home for a more holistic approach to affiliate activity. That said, networks will always have a role – and their position as innovators, driving the industry forward, shouldn’t be questioned. However, their exact role and how they add value, can, and is, being questioned. Networks know this and are evolving. They are setting themselves up in the image of performance agencies, hoping to be seen as the guardian of multichannel data, insights and opportunity.
Affiliate marketing has come of age with data and technology enabling us to do great things for our clients. We all – agencies, networks and technology platforms – play a key role in shaping the space for the years to come. It is precisely these players, the three constituent parts of the industry - agencies, networks and technologies - who are at the centre this dynamic and thriving digital specialism. A specialism that will no doubt look just as different in ten years’ time as it does today looking back to 2005.
By Martin Vinter, Head of Bought Media at iProspect UK.
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