In our webinar, Partnership Marketing in an Uncertain Economy, we discussed the power of partnerships during challenging times and provided some actionable insights on leveraging partnership marketing as a revenue generation channel and a means to reach target audiences effectively. I shared some of my experience in the partnership and affiliate space, emphasizing the important role partnerships could play given the current macro-economic climate. While you can catch a replay of the webinar right here, below are some highlights for you if you’re considering partnerships as critical part of your marketing mix.
Challenges in the Marketing Landscape
Marketers are faced with a tough job today. They’re constantly navigating macro-level factors that create instability and they need to adapt quickly to an ever-changing landscape. The costs of popular advertising channels like search, social, and programmatic have been steadily rising, making them increasingly expensive for marketers. Additionally, inflation and changes in data privacy regulations further complicate the marketing landscape. However, despite these challenges, marketers must find ways to engage their target audience effectively, primarily in the online space.
The Opportunity of Partnership Marketing
Retail e-commerce continues to grow, especially after the digital shift caused by the pandemic. Online shopping has become the preferred choice for many consumers, presenting a significant opportunity for marketers to engage with their audience. Partnership marketing, estimated at $15 billion globally and representing 16% of all e-commerce sales, offers a cost-effective and scalable channel for marketers. However, it is worth noting that while investment in partnership marketing is growing, it still represents a small fraction of overall digital ad spend.
Barriers to Partnership Marketing
There are reasons behind the limited adoption of partnership marketing. Research conducted by Partnerize in partnership with Forrester Consulting revealed that senior marketing executives often lack a full understanding of the value and potential of the partnership marketing channel. Difficulties in quantifying and measuring the value derived from partnerships, as well as a historical favoritism toward other channels, have hindered the growth of partnership marketing.
Considerations for Success in Partnership Marketing
To succeed in partnership marketing, marketers need to ensure they are ready to embrace the channel. This readiness includes factors such as current digital ad spend, organizational commitment, brand awareness, and a working knowledge of partnership marketing. Diversifying partner types and optimizing partnerships at a granular level are crucial for expanding reach and effectiveness. Moreover, protecting margin through strategic commissioning and implementing goal-oriented reward structures helps ensure partner and channel profitability. It is important for marketers to take a long-term view and consider the lifetime value that partnerships can bring beyond the initial conversion.
Bottomline: Despite the challenges in today’s uncertain economic climate, partnership marketing presents a powerful opportunity for marketers. By embracing partnerships, marketers can leverage a cost-effective and scalable channel to engage their target audience and drive revenue. Overcoming barriers such as limited understanding and prioritization requires a shift in mindset and a commitment to learning and exploring the potential of partnership marketing. With proper readiness, diversified partnerships, optimized strategies, and a focus on long-term value, marketers can unlock the full potential of partnership marketing and thrive in an uncertain time.
Once again, you also catch the webinar replay, right here.