why a leading retail brand cut budget from all …...budgets across all marketing channels needed to...

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CHALLENGE After initially realizing notable success from their paid and digital marketing, including significantly increased brand awareness and loyalty online, our client (a leading retail brand) eventually started to experience diminishing returns from these channels, including more expensive keyword bidding for branded and non-branded terms and lower return on ad spend. SOLUTION After a careful review of their attribution model, performance results and returns from all of their marketing initiatives, the client’s internal leadership team decided that budgets across all marketing channels needed to be either cut or significantly tightened. The only exception to this was their affiliate marketing program. Since affiliate marketing is a pay-for-performance model with consistently steady returns, the client determined that it made the most financial sense to not cut funds from their affiliate program. RESULT The client continued to realize at least a 6:1 return from their affiliate program when benchmarked against their paid marketing channels. In other words, for every $1 they were spent, they received $6 back. To learn more about the path many brands take from paid marketing to affiliate marketing, and the unique differences between these channels, check out the comparison chart in our resource titled, “A Marketing Evolution: Paid Social vs Paid Search vs Affiliate.WHY A LEADING RETAIL BRAND CUT BUDGET FROM ALL MARKETING CHANNELS, EXCEPT AFFILIATE RETURN IN INVESTMENT RATE OF 6:1 www.accelerationpartners.com | [email protected] | 617.963.0839

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Page 1: WHY A LEADING RETAIL BRAND CUT BUDGET FROM ALL …...budgets across all marketing channels needed to be either cut or significantly tightened. The only exception to this was their

CHALLENGE After initially realizing notable success from their paid and digital marketing including significantly increased brand awareness and loyalty online our client (a leading retail brand) eventually started to experience diminishing returns from these channels including more expensive keyword bidding for branded and non-branded terms and lower return on ad spend

SOLUTION After a careful review of their attribution model performance results and returns from all of their marketing initiatives the clientrsquos internal leadership team decided that budgets across all marketing channels needed to be either cut or significantly tightened

The only exception to this was their affiliate marketing program Since affiliate marketing is a pay-for-performance model with consistently steady returns the client determined that it made the most financial sense to not cut funds from their affiliate program

RESULT The client continued to realize at least a 61 return from their affiliate program when benchmarked against their paid marketing channels In other words for every $1 they were spent they received $6 back

To learn more about the path many brands take from paid marketing to affiliate marketing and the unique differences between these channels check out the comparison chart in our resource titled ldquoA Marketing Evolution Paid Social vs Paid Search vs Affiliaterdquo

WHY A LEADING RETAIL BRAND CUT BUDGET FROM ALL MARKETING CHANNELS EXCEPT AFFILIATE

RETURN IN INVESTMENT

RATE OF

61

wwwaccelerationpartnerscom | marketingaccelerationpartnerscom | 6179630839