What is mobile affilate marketing
That's why in-app tracking is needed in affiliate marketing
Affiliate partnerships promise great sales for retailers and publishers again in 2020. According to xpose360, the trend is above all more mobile traffic or influencer solutions. And the industry expects an increase in sales. In addition to these positive prospects, however, the fear of restricting third-party cookies in the browser dominates. Google reinforced this with the latest announcements about Chrome. Therefore, and also with a view to the fact that ePrivacy will come into force still a long way off, the industry would like to rely more on tracking alternatives in the future. One of them is in-app tracking.
The Global Savings Group gives reasons for in-app tracking
The commerce and content partner platform Global Savings Group (GSG) documents the importance of tracking affiliate campaigns via mobile and especially apps. If, for example, a buyer enters a voucher link in the app instead of clicking on it, the retailer can track the action, but not how it came about - unless he uses in-app tracking.
The GSG argues that commissions could be jeopardized by more mobile traffic - now around half of all online traffic. The GSG estimates that retailers and brands who do not use in-app tracking are unable to correctly record around 30 to 40 percent of their affiliate performance. And that is disadvantageous for the metrics and the performance evaluation. Affected marketing managers in particular would then be left behind. Especially if your remuneration depends primarily on performance KPIs that you cannot record without in-app tracking.
VIP status could be legitimized with in-app tracking
Dealers who enjoy VIP status with publishers expect more sales through this form of marketing. After all, in such a case, your content is usually placed more prominently or shared via the publisher's social media channels. Often there is a separate account manager for these partners. As a rule, however, large brands in particular are classified as VIP partners. Niche providers or smaller retailers could also turn out to be VIPs if they generate a particularly large number of sales via the app - which may not have been adequately understood up to now.
Without in-app tracking, online retailers would ultimately have less comprehensive insight into their affiliate marketing strategy, the GSG continues. In the worst case, this could even lead to marketing budgets being burned because the allocation for the channels is not based on a complete data set. Knowing how sales are made via the app is essential in order to rule out such developments.
In-app purchases are becoming more common
With reference to data from the mobile commerce platform Button, the GSG explains that users of an app are much more willing to buy than on the mobile web. According to this, the average order value in an app is 1.5 times higher, the conversion rate even increases by three times and users would view four times as many products as on the mobile web. According to Econsultancy, Criteo had already declared for US retailers at the end of 2017 that in-app purchases significantly exceeded those via the mobile web.
If the potential customer is given incentives to use the app, it can be worthwhile for retailers in the long term. In the affiliate context, these can be voucher codes that only app users are allowed to use. In order for publishers to support such incentives, at best, they must be promised higher commissions. These can in turn be substantiated with well-founded in-app tracking.
Trust as the key? Nevertheless, more data is desired
Trust is an important factor in affiliate marketing. However, according to the Affiliate Trend Report 2020, affiliates not only want more secure and cross-device tracking (57 percent of respondents each), but also more appreciation (54 percent) and insight into the tracking logic (50 percent). Incidentally, higher commissions were relevant for 36 percent, while the same percentage asked for special mobile advertising.
Trust alone can be shaken if dealers can no longer understand where and how sales are made, especially when they are on the move. And what commission a publisher would have to get. In-app tracking can be helpful here to strengthen trust, which is then based on clearly comprehensible data. This tracking variant for 2020 is an important starting point for successfully continuing affiliate marketing for all parties. In view of the challenges posed by browser developments and politics, however, far more complex tracking alternatives will be necessary to protect digital marketing as a whole from losing sales.
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