Tips & Guides — 24 Mar 2021
Affiliate Marketing Benefits for Finance & Fintech
The global financial sector is expected to reach $26.5 trillion by 2022, being driven mostly by eCommerce’s growth and the rising demand for convenient payment options. However, marketers mainly have a hard time promoting fintech companies and financial services.
While financial technology businesses’ core value is delivering effective solutions to their customers, many of them struggle with incorporating digital marketing into their promotional strategy. The complicated compliances, tight budgets, difficulties with reaching target audience, and ever-growing competition stretch financial marketers thin, leaving them no time to learn new tactics and create catchy marketing campaigns.
It is affiliate marketing that can save the day.
Launching an affiliate marketing program may be one of the best tactics to overcome financial companies’ promotional challenges. It allows them to deliver marketing messages and achieve significant results in the long run with relatively low effort.
Many financial institutions have already employed this type of marketing. For instance, a European digital bank, Revolut, offers potential partners to join an affiliate marketing program and provides the tools and widgets to promote the company effectively. What benefits did Revolut and other fintech and financial services find in affiliate marketing? Let’s take a closer look.
Both fresh startups and well-established financial institutions may face a lot of obstacles when entering new markets. The main barrier for fintech and financial services companies is a lack of trust from potential customers.
Partnering with affiliates can facilitate the new market entry. Not only are publishers often more aware of the market situation and their audience preferences in the specific region, but also their recommendations can boost the credibility of a new brand and kickstart the growth of a financial product.
Affiliate marketing is one of the most efficient ways to boost brand awareness and online visibility. Working through a branched partner network, financial services companies get tons of publications and mentions on the bundle of resources. Thus, their brands quickly become buzzwords with their target audience.
In their turn, high brand awareness and business visibility underlie the revenue growth and financial institutions’ market success. They are crucial for building trust in a brand and increasing sales, as 71% of new customers are more likely to buy a product or service if the company’s name rings a bell for them.
One of the main challenges of promoting financial products is reaching the right target audience. Meanwhile, customer acquisition is the main driver of business and revenue growth in most niches — 49% of marketers say acquiring new customers is their top priority.
Affiliate marketing allows businesses to easily access the broad audience that publishers muster on their websites. To ensure these Internet users will transform into paying customers, advertisers have to pick suitable affiliates. Comparison or review websites, coupon sites, financial blogs and social media accounts, and loyalty sites are considered to be the best affiliate partners for financial services companies, as they gather a warm and engaged audience.
If leaning on traditional marketing channels, such as television or press, fintech or financial services face troubles with measuring their marketing campaigns’ effectiveness. To procure business growth and switch to more efficient strategies timely, companies need accurate information about their marketing outcomes.
As a performance-based type of marketing, affiliate marketing allows fintech companies and financial services to track results precisely. Sticking to this kind of marketing, businesses can access comprehensive information about the meaningful results — impressions, conversions, purchases, installs, and so on.
Adopting affiliate marketing as the main part of promotional strategy allows fintech companies and financial institutions to cut their marketing costs. Traditional marketing channels require higher budgets than digital tactics. Being a part of digital marketing, affiliate marketing lets financial services companies pay only for achieved results.
Another expense item affiliate marketing cuts is wage fund. Whatever niche a company is working in, adopting new marketing channels results in expanding staff. For instance, launching content marketing requires a team of writers, editors, designers, and managers. On the other hand, affiliate marketing lets fintech companies and financial services get along with one or two affiliate managers.
To make it possible, financial institutions need to join an affiliate network — learn how to do so with our article. Another option is to create their own affiliate program is by implementing affiliate marketing automation software, such as Affise. It will help to manage the whole cycle of ad campaigns management, recruit and communicate with partners, track performance, optimize ad campaigns settings, protect marketing campaigns from fraud, conduct payouts and more.
Traffic generation is one of the goals of partnering with affiliates. Potential consumers of personal finance apps or blockchain services are scattered around the Internet, and affiliate marketing allows gathering them on the advertiser’s website. But affiliate programs let fintech companies and financial services get additional traffic boost.
In a nutshell, affiliate marketing has a positive effect on search engine optimization and SERP results. To promote financial products without repelling their own audience with bold promos, publishers have to create valuable content for native advertising and share links on advertisers’ websites. Those backlinks on trustworthy resources let financial services companies improve their search engine results without spending a fortune on it.
Performance based marketing allows easily switching between different types of partnerships and adjusting campaign objectives when needed. This flexibility is another benefit affiliate marketing provides to financial services companies.
Thanks to the model affiliate marketing is based on, rapidly-growing financial institutions and fintech companies can expand their partner networks safely and effortlessly. Well-established businesses also profit from this flexibility, as they are obliged to follow FTC rules and regulations. In case of legal changes, financial institutions can promptly make adjustments in their affiliate partnerships.
When it comes to partnerships within an affiliate program, financial services companies are in the driver’s seat. They control the information, messaging, and creatives that publishers use to promote their brands. This authority lets financial institutions make their marketing campaigns more accurate and compliant, which is nothing to sneeze at considering FTC rules.
To ensure affiliate partners are adhering to guidelines, fintech and financial services need experienced affiliate managers. These employees will help to ensure that publishers reflect brands’ values and message accurately while staying authentic for their audience.
Summing it up, affiliate marketing is a bullet-proof promotional strategy for fintech companies and financial services. Launching a partner program ensures control and flexibility financial institutions need, positively affects SEO, lowers marketing costs, boosts brand awareness, and provides other benefits.
If you want to reinforce your marketing strategy with an affiliate program, you can start with our guide on creating a partner marketing program from scratch. Get familiar with five essential steps, plan affiliate marketing implementation carefully, and get the ball rolling. Also, you can boost your partner marketing program effectiveness in four simple ways, which are the subject of the separate article.
To achieve the best results, automate routine tasks, and keep an eye on marketing campaigns’ performance, you may need a top-notch affiliate marketing software solution. Consider starting with Affise and get a 30-day free trial.
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