Brands are now missing out on the affiliate marketing opportunities in Asia
For those souls who don’t know, performance marketing or affiliate marketing is a traditional and cost-effective performance channel that a digital marketer can have in its armory. The affiliates or the performance partners, as some people like to call it, are paid only on a CPA, i.e. Cost Per Action basis. This means the affiliates receive their commission after the sales have been driven to the advisor’s site from the affiliate’s site. This is a great opportunity for advisers because they won’t have to spend any money unless the sales are happening.
So, what are the opportunities?
The affiliate channels already have a mature and strong presence in North America and Europe. It was the year 1996 when the first affiliate program was launched in the United States. The first affiliate network followed shortly in the year 1998. Since that time, the affiliate marketing industry has grown and updated to today’s model that we are now familiar with. In the US alone, affiliate marketing is expected to be worth around $6.8 Billion in the upcoming 5 years. And in the United Kingdom alone, it’s already worth around $1.6 Billion.
On the contrary, ecommerce in the Asia region is comparatively new and still evolving, with this landscape having a unique set of rules, consumer characteristics,and behaviors. But over the years, affiliate marketing has started to grow prominently in this region.
This affiliate marketing has allowed the brands to have fragmented marketing presence with the help of affiliate channels in Asia, which commonly involves tools, partners,and the providers. The lack of understanding,awareness, and knowledge has let the brands become more cautious about considering the affiliate marketing for Asia. The main reason why brands are not getting into the affiliate marketing there like in other parts of the world is the difficulty of language, local rules and laws on currency, payment gateways, and most importantly the local talents & resources.
Only a few global brands have been able to help the local partners in understanding how affiliate marketing works. Once the fundamentals are in their heads, Brands will soon realize the opportunity awaiting them.
TO give you an idea, in the year 2016, Asia’s ecommerce investment had crossed $1 trillion &the affiliate marketing usually generates anywhere from five to 30 percent of the brand’s total online revenue, which depends on the commitment and engagement.
As being one of few affiliate marketing agency that has worked with the global brands across the Asia Pacific region, Neo@Ogilvy gets to operate across eleven markets where he gradually has developed a solid presence across the Asia region along with a local employees who are working with some of the giant publishers in their own respective markets.
But there is still time for brands and companies in Asia to adopt this cost-efficient marketing strategy to gain a solid online presence, not only in Asia but throughout the globe. For that, brands in Asia needs to understand the efficiency of affiliate marketing in driving traffic and local authority should smoothen the laws on payment processors, currencies, etc. to give everyone a fair chance of being involved.
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