The transformation that’s driving affiliate growth for publishers

What's New in Publishing 19 Jun 2020 07:15

Amazon recently made commission cuts to their affiliate program and started limiting certain categories. There’s no question that publishers felt the weight of those cuts in mid-April. 

Despite this – we’re seeing that publishers are increasing their affiliate budgets and seeing great ROI. So let’s dive in. 

A convergence of opportunity

Since The Great Upheaval in March, direct-response-style revenue categories – like paid subscriptions and affiliate programs – have been seeing a huge boost in ROI. At first, it was the drop in CPCs combined with record traffic numbers. The CPC trends have been on an upward swing since April, and yet, the ROI continues to be positive. Why is this? 

As far as I can tell, it’s all about volume. People have transitioned more fully into a digital-first  lifestyle. They spend more time online, and have moved their interactions and transactions there more fully. 

For example, Q2, which historically was not a particularly strong quarter for eCommerce before the crisis, this year saw online shopping numbers surpassing Q4 2019 numbers. Let’s take a minute to let that sink in. Q4 is the Superbowl of online shopping. Black Friday, Cyber Monday, Christmas. Q2 was bigger than that. 

Taking these three actions along with the right targeting and bidding strategy is the best way to set up your campaigns for maximum growth and ROI.

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