According to a recent poll done by Affiliate Network Paid On Results, 20% of online retailers ‘didn’t fully understand’ what affiliate marketing is, and another 26% said that they have not thought about using any type of performance marketing strategies to promote their brand. This adds up to about 46% of all online retailers who not only don’t have an affiliate marketing program, but really haven’t even looked into whether or not one would be beneficial to their business.
The remaining 54% are companies that either do have an affiliate program, or have looked into the option and decided it wasn’t a good fit for them at this time. This shows just how much growth potential there still is for affiliate marketing management firms, and hopefully this will translate into additional affiliate opportunities in the future.
Graeme Sandwell, the managing director of Paid on Results, said “It’s a real shame that not all online retailers or businesses with ecommerce offerings have tapped into the potential affiliate marketing can offer. I was really shocked to discover that as many as 20 per cent of online retailers don’t even know what affiliate marketing is.”
While performance marketing strategies certainly aren’t right for every business, it is quite shocking that this many businesses aren’t even considering it as an option. Affiliate marketing programs are a proven strategy that has worked for businesses around the world.
Sandwell went on to say, “It’s the kind of marketing activity that can really give tangible financial results, because affiliate websites will do their best to promote your brand and drive sales so that they can earn commission. It’s like having a whole army of marketers ready and waiting to drive engaged customers your way, so it’s about time more retailers were away of how easy and affordable it is to set up an affiliate program.”
The poll didn’t go into why these companies hadn’t looked into affiliate marketing as an option. In my opinion, it seems like this is a big opportunity for affiliate management companies to go out and market themselves to these companies. A well run affiliate program should be an easy sell to any business that already has an online presence.
What do you think about these numbers? Are they higher or lower than you would have expected? Share your thoughts in the comments below.
