Guest comment: How the economic climate of 2009 has changed the landscape for marketers

2009 may have been a challenging year for the high street, but for online retail it has had a much more positive impact. Consumers have turned online in their droves to look for the best bargains.   Research carried out by Penn Schoen & Berland Associates in partnership with LinkShare (March 2009) found that 81% of respondents were doing online research ‘most of the time’ before buying a product. In addition 92% said that they now have more confidence in online information than sales people in shops – this opportunity for the marketing industry has not gone unnoticed.

This consumer shift has been reflected in the growth of voucher and cash back sites over the past twelve months. For consumers online shopping is now about more than just the product they want to buy; even those for whom the pressure is not so great are tightening their belts in an attempt to guard against the after effects of the credit crunch. As a result sites offering something more – whether it is the extra money off or the promise of cash back – have become more popular than ever.

Inevitably marketers have followed the consumer online. One of the results of this shift has been in the increased use of affiliate marketing to match the multiple channels that consumers may use online. The strongest affiliate networks are offering a wider range of channels for marketers to reach their consumer as effectively as possible – from the voucher and cash back sites that have made such an impact on consumer behaviours, to editorial and review sites where consumers go to research their purchases. The figures speak for themselves; affiliate marketing today accounts for 10% of online sales, a figure that is only set to grow over the next twelve months.

Of course, it is not only consumers whose budgets have been affected by the economic downturn. Marketers too need to make sure that they are spending their money in the most effective fashion to get the best return on investment. Every pound must work harder in every campaign. This is where we expect to see the biggest changes over the coming year and it is already starting to become evident as the pre-Christmas sales approach.  Online marketers are working more and more closely with other marketing channels to make sure that their affiliate and other online campaigns are part of the wider mix of communications tactics. The consistency of message is a priority; the connected consumer must be reached through multiple channels and the most successful campaigns are recognising and embracing this fact.

2009 has also seen blogs bloom into an increasingly powerful media channel. Many of the most successful are written by people from everyday walks of life. For them, the growth of online sales and the use of affiliate marketing means a chance to monetise their blogs and with third party technologies like Skimlinks now easily available, it is a trend that we expect to see grow strongly in 2010. Tools like LinkShare’s Easylinks also help to make it a simple and straightforward process for blog owners to promote brands and relevant products on their site. And the result? A growing segment of ‘start-up’ publishers who have a strong relationship with a specific niche audience. For marketers, this is an invaluable new channel.

Nor will vouchers and cash back sites disappear in 2010; in fact, the IAB voucher guidelines and affiliate Networks’ enforcement of them will make them safer and more accountable than they have been before. Consumers, once accustomed to the extra value offered by this kind of site, won’t go back to the higher prices they may have paid before; it is a trend that is here to stay.

So in conclusion, what does 2010 hold for online marketing? It will certainly become more integrated with other marketing channels than it has been before. For all its audiences, whether it is those planning, buying or even on the receiving end of its campaigns, it will be more transparent and easier to use than it has been in the past. Ultimately the challenging economic climate of 2009 has provided the perfect platform for online and affiliate marketing to prove its value and to give marketers the chance to reach consumers in a more targeted and measurable fashion than ever before.

By Liane Dietrich

MD

LinkShare UK

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