While browsing your social platforms, has a promo code ever caught your eye or your wallet? Ever wondered how the mechanism works behind affiliate codes like “JESSICA10”, “MANGEZFRESH30” and “BOUGEZMORE10” that underline certain Instagram posts? Who reports what? Customer Influencer Advertiser? win-win-win ? Let’s talk about affiliate marketing to demystify this universe in the company of Benjamin SiaudSpecialist for influencer campaigns at DDA, a department of the agency Dulcedo.
What is affiliate marketing?
Affiliate marketing or affiliate marketing, also known as performance marketing, is a tactic that works by referral. It consists of entrusting the promotion of products or services to an affiliate, often a content creator or blog, who receives a commission. On one side is the advertiser – a company or brand – and on the other side is the broadcaster – or affiliate – who recommends the brand through a medium by using an affiliate link to the advertiser’s website. A bit like word-of-mouth, except the person recommending product X gets paid for their recommendation and if the product is purchased through an affiliate link. Authenticity is of course the be-all and end-all!
You yourself may have recommended to your friends to buy ready meal boxes such as cook it or advised them to use the app UberEats in exchange for a discount without being affiliated.
Benjamin SiaudSpecialist for influencer campaigns ADDa department of the agency DulcedoNuance. “Promotional codes and affiliate marketing are sometimes two different things. Promotional codes do not necessarily mean that the influencer will be paid based on the number of sales generated. According to him, the idea behind affiliate marketing is to compensate the influencer according to the results they bring. “In most cases it is a sales commission, but it can also be compensation based on the number of clicks generated, the number of downloads of a mobile application, etc. »
And it seems that 80% of brands have an affiliate program. Such is the case of the beauty giant SEPHORAthat offers a program open to all publishers who want to highlight the products sold by the brand.
SEPHORA campaign with Dulcedo model Abigail Whitney
How do brands make their choice?
How is the connected person, i.e. the person recommending a product and sharing a code, generally preferred? In the house of Dulcedo, content creators are selected based on primary campaign objectives and branding. “We always make sure the influencer’s audience is authentic, engaged, and representative of the people we’re trying to reach. We also rely on our expertise and data from hundreds of campaigns we’ve managed over the years,” he shares Benjamin.
For those skilled in the art, affiliate marketing is a separate strategy with pros and cons. The main goal? generate sales. “Above all, it’s a way of controlling the cost of an advertising campaign and only remunerating the influencer based on the results achieved and not the potential results,” he explains. The risk of default is therefore lower and it is also an incentive to look for more customers.
Cindy Cournoyer and Lucie Rhéaume, two of Dulcedo’s best local and French-speaking influencers.
A profitable strategy for whom?
Affiliate marketing is a very profitable strategy for a brand that wants to spread the word to the affiliate’s audience through browsing – and sell! – its products and services. Each party concerned is therefore a winner. In short, affiliate marketing is based on the relationship between the merchant, the affiliate and the consumer.
In the idea everyone has something to gain, relates Benjamin. Whether brand, influencer or end consumer. “The brand controls their costs because they only pay for the results, the influencer may get a nice fee, and the end user can benefit from discounts. However, warns Benjamin, brands need to understand that affiliate-only campaigns are sometimes not necessarily attractive to content creators as they have no guaranteed income for the work done. “We can even say that the brand wins more than the influencer in general,” he says. In fact, if no conversion is generated from the influencer’s audience, the brand will still be visible thanks to the content published by the influencer on their page.
In the end everyone can be connected?
In the affiliate marketing cosmos, you can spot a few content creators with relatively small audiences who share affiliate links. Benjamin explains that brands and marketers have developed an interest in profiles at in recent years the followinglower. They are commonly referred to as nano-influencers. The benefit of these profiles is their proximity to their subscribers versus the “biggest profiles” who have virtually none, or at least few. With a high engagement rate, nano-influencers are often followed by family, friends and acquaintances. The entourage what.
“This gives the influencer more credibility and the trust of their target audience, who are more inclined to listen to their recommendations on new trends and therefore take action, continues Benjamin. Additionally, these profiles tend to engage in less paid collaborations, resulting in less competition for brands wanting to work with them. »
The only downside for brands? Find the right partnerships. So anyone can become a member. A very high engagement rate helps! 😉
Models Dulcedo at one of the agency’s famous pre-pandemic parties.