For many advertisers, affiliate marketing is a crucial part of their strategy. As a performance-based channel, marketers expect partnerships with affiliate marketing sites to drive customer conversions. While affiliates effectively drive purchases, their impact extends beyond conversions. They serve as a full-funnel marketing channel integrated into any marketer’s mix. To better understand consumer perceptions of affiliate content and how advertisers can optimize their strategies, eMarketer’s new report explores consumer awareness and engagement with affiliate content.
Awareness and Engagement with Affiliate Content
A survey of 1,378 US consumers revealed that most are aware of affiliate marketing when they encounter it. Over half of US consumers notice affiliate content online, which is significant as many consumers are adept at avoiding or ignoring ads.
Affiliate Content Ranks as One of the Least Intrusive Types of Advertising
One standout insight is the perception of affiliate marketing as one of the least intrusive forms of advertising. Less than one-fifth of consumers rated any kind of affiliate marketing as “very intrusive.” This low intrusiveness contributes to a more positive consumer experience, crucial for maintaining engagement and trust while presenting little risk of alienating consumers. Respondents rated affiliate ads favorably compared to banner ads and found them roughly equal to most video ads. Affiliate ads were regarded as less intrusive than native display ads or right-rail banner ads and much less negatively than mid-roll ads, floating display ads, or pre-roll video ads. Exclusive coupons and discount codes were seen as “very intrusive” by the smallest percentage of US consumers, with only about 1 in 5 considering affiliate text links “very intrusive.”
Reach of Affiliate Marketing
Affiliate marketing has spread into almost every corner of the internet. Equal percentages of consumers noticed affiliate ads on the web and on social media, aligning closely with the share of time spent on those media. The percentage of respondents who noticed affiliate ads in email signifies traction. The high number of consumers who see affiliate ads in their inboxes suggests around one-fifth have direct relationships with affiliate publishers.
Generational Differences in Perception
The report highlights substantial generational differences in the awareness and perception of affiliate marketing. Younger generations, more active on digital media and social platforms, tend to notice and respond to affiliate marketing more than older generations. Influencers are particularly influential in driving social media purchases, far more so than media companies.
Influence of Affiliate Marketing
Consumers are generally dismissive of the idea that advertising persuades or influences them. However, relative to other ad types, consumers—especially younger ones—acknowledge that affiliate marketing can shape their thinking. Less than 3 in 10 respondents said affiliate marketing influenced them at least “moderately.” Major generational differences in perceptions of influence reflect that baby boomers and Gen Xers are more suspicious of advertising than younger consumers. Younger consumers trust affiliate marketing’s value proposition more, which should empower advertisers interested in this channel.
Video: The Most Commonly Noticed Type of Affiliate Marketing
Two-thirds of US consumers have noticed affiliate video content. As platforms like Instagram and TikTok elevate short-form video, affiliate video content is becoming much more visible. More than half of US consumers have noticed exclusive discount codes.
Role of Creators in Affiliate Marketing
Consumers see creators as more influential on social media. Nearly half of consumers said creator content had influenced them to make a purchase on social media, compared to about 10% who said media company content had done so and 35% who said retailers’ content had done the same. As creators embrace affiliate marketing, publishers and media companies in select verticals will be put on notice. However, achieving scale with creators/influencers inside the affiliate channel is challenging. Working with more scalable micro and nano influencers can boost results.
Google Updates and the High-Level Changes Affecting Affiliate Marketing
Google’s latest core update has shaken up affiliate marketing. The update affected different publishers differently, but in an advertising sector where achieving scale can be difficult, it’s important to quickly assess which publishers are having trouble with distribution. For many affiliate advertiser categories, Google is less relevant than ever. Advertisers wanting to reach Gen Zers or millennials should focus affiliate marketing efforts on partners using video-centric platforms.
Affiliate Marketing: A Full-Funnel Channel
While affiliate marketing is often prized for its ability to drive conversions, it also functions effectively as a full-funnel marketing channel, playing a role at every stage of the consumer journey, from awareness and consideration to conversion and loyalty.
Implications for Advertisers
Marketers should integrate affiliate marketing into broader advertising efforts:
- Maximize reach and awareness by integrating affiliate marketing strategies across various digital touchpoints.
- Build trust by partnering with reputable affiliates and providing transparent, valuable content.
- Tap a diverse array of partner types to tailor to generational preferences and media consumption habits
- Leverage influencers, especially micro and nano influencers, to authentically promote products
By understanding how consumers encounter and view affiliate content, advertisers can refine their strategies to drive better results, especially for brands targeting younger consumers.
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