The promise of affiliate marketing — and what makes it so appealing both to brands and affiliates alike — is that it’s a win-win, merit-based marketing channel that’s low risk, but carries the possibility of high reward. It’s a proven channel that has helped many businesses achieve growth that would have otherwise been unattainable. But it only works when it’s working for everyone; affiliates need to be appropriately incentivized to perform — and on the brand side, the ROI has to justify continued investment in the channel.
Over the past decade, however, a number of challenges have arisen within the industry that have caused dissatisfaction for both parties. Chief among these challenges has been the misalignment between the sales attribution reports from the affiliate network and the brand’s own internal analytics. In short, brands are paying for sales that were not truly incremental to their business and losing money because of it.
This misalignment between brands, affiliate networks and partners alike, is caused by third-party tracking. Originally, pixel tracking was what allowed the performance marketing industry to take off. But as the industry has grown and matured, most companies have spent time and money setting up their own internal analytics platforms that can monitor all the channels they are using (search, display, etc.). Since third-party tracking does not look across all channels that a brand is using, it will attribute any sale touched to the network, regardless of whether that touchpoint was truly that which drove a customer to a sale. This can cause mistrust between brands and affiliate networks and frustrate publishers, holding back investment in the channel.
Despite all of these frustrations, most brands have accepted the inevitability of misalignment as status quo. The big problem is that these discrepancies make it very difficult for brands to see which sales are truly incremental to their business. And when a brand is not able to accurately measure which partners and channels are performing best, they are not able to invest accurately.
This is the cycle that can put a lot of strain on affiliate ROI. If, as a result of misaligned attribution data, brands are consistently over-paying or double-paying their affiliates, growth becomes much more difficult.
This is where Pernix comes in.
A true server-side solution, Pernix allows digital marketers and affiliate program managers to define affiliate attribution on their brand’s own terms.
With Pernix, brands are empowered with the data to know if the sale credited to a given partner is truly incremental – that is, if the sale would not have happened without that partner’s influence and value-add. So, rather than being at the mercy of third-party tracking, brands who use Prenix no longer have to deal with discrepancy between attribution reports from affiliate networks and their own internal analytics. Instead, their internal analytics will always serve as the source of truth.
Why is this a game-changer for your affiliate marketing program? Because Pernix allows brands to see which partners are providing real value throughout the sales funnel, rather than only rewarding those who vie for the last click attribution without contributing any real value to the marketing process. This in turn incentives better behavior in partners, because they have the confidence that they’ll be paid for providing value upfront, not solely for closing the sale using any means necessary.
When digital marketing leaders have the ability to accurately measure affiliate attribution on their own terms, they can reallocate investment in their affiliates to incentivize behavior that brings in sales but also increases market share.
Pernix can help increase your affiliate ROI in three significant ways:
- Pernix allows you to identify sales that are truly incremental to your business so that you can grow your affiliate program faster: Since Pernix aligns with your source of truth, rather than relying on that of a third party network, you’ll be able to eliminate over-attribution and double-claimed sales. Less money lost on inaccurate payments means more money left in your pocket to reinvest in the channel.
- Pernix helps increase return on advertising spend (ROAS) so you can reallocate budget where it’s needed most: Increase your ROAS across all digital channels by resolving cross-channel attribution issues and eliminating over-attribution that waste time and money.
- Pernix increases publisher alignment so that you can attract top affiliate partners: Because Pernix uses server-to-server technology, you will see a reduction in order corrections and subjective commissions, increasing confidence among your publishers. You will also be able to understand which publishers are driving value aligned with your objectives. Armed with this information, you can reinvest in publishers either by paying top performers more competitive rates, or by investing in attracting new affiliates to grow the channel as a whole.
Pernix is raising the bar and establishing a new standard in performance marketing by ensuring that sales in the affiliate platform always align with a brand’s attribution. Empowered in this way, brands can understand the true value of the channel and leaders can track affiliate ROI simply and reliably.