Most market research companies tend to ignore the affiliate marketing industry. The major reason for the snub is because of the misconception that it is a very small sector. Earlier this year, the highly reputed International Hartford Group did extensive research to explore opportunities to invest in this sector. The study conducted by them was extensive and they estimated the affiliate marketing industry would grow to $5 billion by 2016 in the US.
According to the International Hartford Group the key to growth in this sector is the channel’s ability to create leads that are completely new-to-file. The other growth triggers are focusing on sales with recurring billing, increasing the life time value of a customer and to attract those who spend more than an average online shopper.
All major companies who sell their merchandise/service online is investing more in the affiliate channel. However the areas where they invest vary, the investments in the affiliate channel are divided based on the marketer’s focus areas.
Known for their meticulous research and investments, the International Hartford Group is carefully considering all the factors for their successful entry in to affiliate marketing and are studying the models of successful affiliate channels of many major companies. The group, after the research has formulated key strategies for their foray in to affiliate marketing.
Identify Global Cities:
According to a McKinsey report, over the next 13 years half of the economic growth of the world will happen in 440 cities. Targeting the customers from these global cities (cities like Moscow, Bangalore, Sao Paulo and Lima), will reduce the cost incurred in affiliate marketing promotions, while ensuring good sales volume.
Today there are more smart phones than there are desktops and Laptops. By 2015 most people will access the internet via their smart phone. Adopting m-commerce and mobile advertisements can help an affiliate marketing company to grow quickly. The advertising costs for mobile apps and mobile platform is relatively very cheap and this strategy can increase the profits of an affiliate marketing company.
Proper Channel Selection:
The research report of International Hartford Group stressed a lot on proper channel selection. According to them a single channel will not suit every product line, and it is important to choose the right channel for the right product.
Proper Tracking of Metrics:
With the focus shifting to multi-channel marketing, an affiliate marketing company should make sure to track all the metrics related to traffic and conversion. This will help the company in fine tuning their strategy. With proper data, a company can shell out more advertising dollars for those channels that are performing well.
Focus on Social Media:
Facebook became the most used website last year (surpassing Google), and twitter too is right there at the top. These social networking sites are super powers when it comes to providing targeted traffic. Social media spends are fast catching up search engine optimization expenses. Based on the research done by the International Hartford Group, social media offers the higher ROI among all affiliate channels.
At Earn-Online-Money.com we wish the International Hartford Group success in their endeavor.