Companies are continually looking for the most effective ways to connect with their customers. Regardless of how innovative, capable, or compelling a product is, it’s valueless if it doesn’t resonate with a market that’s willing to pay for it. That’s why companies are paying big dollars to proliferate their brand through advertising. According to data compiled by Statista, companies will spend $218 billion on advertising in 2018, and that number is expected to increase by almost 20% in the next few years.
In a crowded marketplace, getting the message out is a top priority.
Of course, there is no fixed approach to marketing best practices. They change to reflect the cultural and economic context of the day. For example, while television advertising spent several decades as one of the most effective methods for brand proliferation, that trend has moved toward digital platforms as audiences move in mass to online services.
What’s more, this arrangement is facilitating a resurgence in affiliate marketing, a technique that involves a company promoting its products on other platforms and then paying a commission to that platform if it generates user interest. In a digital-first economy where clicks and cross-platform participation are a regular occurrence, this advertising strategy is proving to be uniquely effective.
The Rise of Affiliate Marketing
The internet is fertile ground for affiliate marketing, and companies are well aware of its potential. Upwards of 80% of all brands use affiliate marketing as part of the advertising strategy. Google Trends reveals that searches related to affiliate marketing have almost doubled in the past four years as more companies and ad agencies explore its implementation. EMarketer reveals that spending on affiliate marketing increased in each of the last four years, and it’s expected to reach almost $7 billion by 2020.
In short, the internet is fostering an environment where affiliate marketing is becoming one of the most effective ways for a company to reach its audience.
A Bizarre Hindrance
Strangely, although affiliate marketing is on the rise and the internet is seemingly a perfect incubator for cross-platform collaboration, its growth is being stifled by the industry’s current management structure.
Affiliate advertising is managed by a network of middlemen that connect companies and platforms to facilitate ad placements. Not only do the middlemen acquire a cut of the commission paid to the publisher, but they also control the actionable data associated with content marketing.
From the perspective of modern advertising structures, affiliate marketing should be a data-driven, measurable initiative that is continuously in flux. Companies should be able to measure the effectiveness of their ad campaign and to make adjustments to ensure that they are receiving the best bang for their buck. Unfortunately, this data is shrouded in mystery, so companies are paying a premium for results that are less than they could be.
Freeing the Marketing
Fortunately, there is a solution. The emergence of the blockchain as an enterprise-ready technology means that companies are able to develop new platforms that more directly connect companies and advertising platforms. At the most basic level, the blockchain creates trust in an otherwise trustless environment, and it deems the middleman unnecessary.
Attrace is a blockchain-based marketplace where merchants and publishers find one another and engage in a direct relationship. Rather than relying on an agency to locate these publishers, companies can do this themselves, and they will benefit from their efforts.
These functions are powered by Attrace’s private blockchain, which ensures that the process is secure, transparent, and highly effective. Their build from scratch initiative accounts for every click and sale. In doing so, Attrace isn’t relying on other platforms for their services. Instead, they are building a place where companies and publishers can most effectively collaborate with one another to drive traffic to publishers and to promote quality products.
The blockchain produces perfect records that allow companies to see the effectiveness of their ad campaign. They can monitor clicks, sales, and other metrics to ensure investment is paying off, and they can have confidence in that data’s authenticity.
Moreover, companies save a significant amount of money in fees and commissions. Many affiliate networks charge 10-25% in commissions, but Attrace limits the expenditure to just 0.5%. Using the blockchain’s smart contracts, these commissions are paid instantaneously, so everyone is operating in real-time.
When affiliate marketing works as it should, customers get the products they want, companies gain the sales they desire, and publishers earn the revenue that they desperately need. It’s a rare win-win-win scenario, and that’s good for everyone involved.