Nine affiliate marketing predictions in 2021

Since Adtraction was established in 2007, we have had a strong belief that local presence is key to gain unique knowledge and expertise about our markets.

We asked our management teams in each local market to share a key topic that they believe will make a tangible difference to affiliate marketing in 2021.

Advertisers becoming publishers in Finland

With growing competition in the e-commerce vertical, advertisers need to look for new, innovative ways to cultivate value for consumers.

An increasing number of Finnish advertisers add value to their existing offering by becoming publishers. More specifically, the advertisers use their membership program to share offers that can provide added value to the customer.

Both consumers and advertisers benefit from the set-up; advertisers get the opportunity to enhance their loyalty program and earn commissions, while customers are exposed to relevant promotions, increasing customer satisfaction and loyalty.

Changing consumer habits in Spain during the pandemic

Unsurprisingly, Spain has seen notable changes in online shopping behaviour over the past year with COVID-19 lockdowns and restrictions. Consumer spending online has increased by more than 10%, and for the first time, 3 out of 4 Spaniards bought their Christmas presents online in 2020. E-commerce companies are also experiencing a constant demand for faster delivery, with delivery time being more important than price.

Along with a notable growth in online shopping, certain categories have gained popularity. While the tourism and restaurant industry has crashed, the demand for furniture and household products has notably increased.

New lending products in response to financial regulations in Poland

In response to COVID-19 the Polish government introduced a new law with a more aggressive interest cap for loans. Payday loan companies and other online lending providers have been required to update their product lines in accordance with the new regulations.

Products that are not subject to the new regulations are rapidly gaining popularity. We expect an increasing number of lending providers to broaden their offering by including products such as insurance and credit cards with preloaded limits.

Adtraction is an active member of the Polish Loan Provider Association and we look forward to supporting the market changes by introducing new products and campaigns as part of our advertiser portfolio.

The UK affiliate channel will embrace predictive technology to recommend the best performing offers and codes

In the UK, over a third of affiliate sales are generated by a customer facing offer, like a discount code. The affiliate industry is notoriously squeamish about its relationship with offer-delivered marketing, even though the CPA model naturally drives affiliate marketing closer to the purchase.

The affiliate industry sits on a wealth of data about what consumer-facing offers are most effective, across a wide variety of e-commerce sectors. This data needs to be used predictively to help advertisers build offers for the affiliate channel that will drive profitable sales. We’re already seen offer-facing technologies like Uniqodo and Smartercodes launch in the affiliate industry. 2021 could be the year predictive offer technology makes a tangible impact on how advertisers run their affiliate marketing programs.

E-commerce growth driven by elderly consumers in Germany

In Germany, E-commerce growth in 2021 will be driven by over 65’s who are likely to be constrained by ongoing restrictions due to COVID-19. This could be a valuable opportunity both for advertisers and the affiliate industry to tailor marketing to this demographic.

Reviewing the distribution of elderly consumers in different publisher categories, loyalty and reward publishers in particular benefit from this emerging target group. Perhaps we will see a loyalty site launch specifically targeting this group in 2021?

We are expecting notable e-commerce growth in 2021 to be delivered by elderly consumers who will become more familiar with online shopping for regular, every-day items.

Podcast sales increasing in Denmark

The Danish podcast market is growing and becoming an increasingly important source of advertiser revenue. The channel saw great success in 2020, with some podcasters delivering more than 150 sales per month to individual advertisers.

In order to track podcast sales, we utilise voucher code tracking. The podcaster promotes a voucher code during the show, and the voucher code tracking allows us to track all incoming sales from the specific code instead of requiring an affiliate link.

We look forward to growing the podcast channel even more in 2021.

Subscription-based businesses seeing success with affiliate marketing in Sweden

Over the past year, the popularity of subscription-based services has increased and we expect it to develop further in 2021.

Typical subscription-based businesses such as mobile networks, food boxes and streaming services have been popular amongst publishers for a long time, but we now see subscription-based businesses from additional industries turning to affiliate marketing as well. The razor company Estrid and apps such as Voi and Trion are only a few examples.

Publishers appreciate subscription-based services because the service often targets a broad audience, while often having low or free start-up fees and high conversion rates.

Growing interest for CSS Google Shopping in Norway

As Google is becoming increasingly important with its shopping features, partnering with Comparison Shopping Services (CSS) are a great way for Adtraction's advertisers to increase the visibility of their products.

The CSSs working with Adtraction are certified Premium partners, giving them not only lower traffic costs but also access to higher levels of training and support from Google.

Traffic from CSS partners has grown significantly over the past years, and we expect further development in this marketplace as new merchants bring increased inventory and better search results.

An increasing number of retailers are turning to e-commerce in the Netherlands

The COVID-19 pandemic has accelerated the shift towards an increasingly digital world and many retailers have been forced to strengthen their online presence in order to maintain their customer base and keep sales on par.

Now more than ever, consumers are looking to make a connection. Retailers that succeed during the challenging time stand out with an optimised online experience.

In the Netherlands, as in many markets across Europe, affiliate marketing is a great channel to help advertiers grow their online presence quickly. It allows brands to reach new audiences without the upfont budget required from other marketing channels.

Change is the only constant

While some markets see developments resulting from the COVID-19 pandemic, others witness the emergence of new publisher types that are gaining prominence in the ever-changing affiliate landscape.

On the advertiser side of the network, we see new product offerings and more brands than ever before embracing the channel as a way to reach new customers in a cost-effective way with marketing that is focused on driving sales.

We all hope for a stable and predictable 2021, but one thing is certain: change is the only constant.

Want to chat further about this? Reach out to us at support@adtraction.com if you’re interested to know more about your local market.