Tips & Guides — 20 Jul 2023
Partnership Marketing Trends for 2023
Partnership marketing, which is also knowing by affiliate marketing, is gaining popularity every year. Why? It happens in light of the growing online sales, mobile shopping, and social commerce. Consumers use smartphones to find the desired goods, requiring online stores to enhance mobile eCommerce UX. They utilize social media to communicate with companies, giving influencers leverage to monetize their content.
That’s where partnership marketing can benefit all parties involved. Companies don’t need to search for customers and encourage them to buy. Bloggers can generate valuable content and earn money from every transaction. And shoppers receive recommendations from authoritative industry experts.
As simple as this tactic may seem, it constantly develops and paves the way for new tools and trends. How do you know about the most converting strategies of partnership marketing in 2023? Read this article to find some of the most promising partnership marketing trends for the following year and beyond.
Partnership marketing is one of the powerful ways for modern companies to raise brand awareness, increase sales, and attract target customers to their websites. This promotional method involves companies partnering with publishers and paying them for successful sales.
Suppose a person has a blog and writes an article about your product. They include a link to your store and employ all their skills to encourage people to click this link and buy. When a reader buys from your website, a blogger receives a commission.
Partnership marketing helps online businesses stand out from the competition. According to statistics, 16% of all eCommerce sales worldwide come from partnership and affiliate marketing. While it may seem low, it’s nearly equal to paid searches, driving 20% of online orders.
A recent trend toward higher protection and privacy has influenced affiliate marketing as well. Consumers are becoming more concerned about tracking their online activities, so companies and governments introduce laws to hide this information from others. That’s where cookies come into play.
Cookies are text files created to identify users across websites. These small files sync up with browsers to store user preferences, login, and registration information, including the contents of shopping carts.
First-party cookies contain data from activities on your website, blog, or app. They ensure the proper website work, storing cart and wish list data. Third-party cookies, on the other hand, come from other websites, such as advertising and analytics services, sharing data between platforms.
Screenshot taken on the official Ikea website
Google plans to eliminate third-party cookies from its Chrome browser, and Apple gives its clients more leverage to manage data sharing. All these facts create roadblocks for affiliate marketers.
The thing is, third-party cookies help them track conversions and personalize advertisements. And with these files becoming irrelevant, they need to develop other strategies. One of the ways is to focus on first-party cookies. You can also use website analytics, customer surveys, and sentiment analysis to gain more consumer insights. Offer personalized programs, products, and other valuable things to encourage people to share their information.
Many small and midsize businesses are starting to see the advantages of partnership marketing. Since the pandemic urged brands to relocate their operations online, these companies increased the number of partnerships with affiliate marketers and influencers. Even though brands may not have big partnership marketing budgets, they still can use this tactic with a decent return on investment.
One of the ways to do it is by collaborating with micro (with 10,000 to 25,000 followers) and nano (with 500 to 10,000 followers) influencers. You can increase brand awareness and reach a larger audience online without spending a great budget on the campaign.
Influencers with fewer subscribers also show better engagement and relationships with their audiences. Their smaller follower base is also more focused on a specific niche. So the ads will be highly targeted to them. And the better they hit the mark, the higher conversions you will have.
TikTok and Instagram are the two primary platforms to find such collaborations. They let publishers speak to their devoted listeners, incorporating your products into their everyday lives. Below you can see how an Instagram nano influencer, Kelly, shares a post about skincare products and offers a unique discount code, “KELLY”.
Screenshot taken on the official kellysskincare Instagram account
One of the most notable things about today’s online shopping is its fast pace and interactivity. That’s what live shopping offers. Live shopping (or virtual shopping) lets influencers or affiliates promote goods, offer coupons, discount codes, deals, and answer viewers’ questions during live streaming. Thanks to the real-time format, consumers can get the needed information without having to wait.
This type of shopping is more personalized and engaging, increasing the likelihood of purchase. No wonder why live shopping is becoming more popular among brands. Boomed in China in 2021, this trend will gain significant traction in the United States and other countries in 2023.
Social networks create various ways to streamline virtual shopping. For example, popular creators have already participated in live streams on social media platforms like Facebook, Pinterest, and Instagram. Another example is YouTube’s week-long live shopping event in November 2021. It united numerous creators and influencers holding shoppable live stream events.
Screenshot taken on the official YouTube website
Another 2023 partnership marketing trend revolves around video content’s growing importance. Videos are the most engaging formats for reaching out to potential customers. They are better at retaining viewers’ attention on the subject compared to text or images. They also allow affiliates to present the product from all angles.
A Deloitte report on digital media trends for 2022 claims that 41% of American consumers watch more user-generated videos than TV shows and films through streaming services. So instead of watching content bought under a streaming subscription, people prefer free videos on social media.
More and more platforms understand this trend and increase the duration of supported videos or promote short-form clips like Reels on Instagram. Thus, eCommerce brands will target more affiliates and content providers specializing in videos to boost sales.
Check the screenshot below taken on Marques Brownlee’s YouTube channel. This famous YouTuber and tech reviewer includes affiliate links in the video description, taking you to the dedicated Amazon page.
Screenshot taken on the official Marques Brownlee YouTube channel
Artificial intelligence is transforming the current world of manual operations. Combined with automation, AI can improve efficiency in any sphere, from logistics to human resources. In addition, AI allows for faster and more efficient data processing.
For example, chatbots can understand natural language and respond accurately to customer inquiries. So customer support specialists don’t have to go through numerous documents. It saves both time and money while increasing the levels of customer satisfaction.
Partnership marketing can also benefit from AI. AI-based solutions can enable more effective customer behavior tracking and make better forecasts about future events based on current data.
Machine learning algorithms, being part of AI, learn from past experiences and predict future events based on what has already been discovered. They allow you to make better business decisions, target the right audience, and track correspondent metrics. You can also optimize your content’s keywords to generate more leads.
Partnership marketing is increasingly popular as a low-cost strategy for scaling a business. What companies does affiliate marketing serve best? Small companies benefit significantly from this type of marketing because it boosts sales while requiring less money and effort. But it’s not only about small or medium businesses. Nearly every eCommerce company, from local boutiques selling a single item to huge multinationals, can participate in an affiliate network or have an affiliate program.
The partnership marketing industry may seem competitive. You need to stay on top of market trends to outperform your competition. We’ve presented you with the top five trends to expect in 2023. Some already shape the affiliate marketing landscape, causing brands to adapt to the shifting customer needs.
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