Why Affiliate Marketing Is Poised to Rise as Third-Party Cookies Crumble

Cookies are ending because they were not used responsibly. They broke the trust of consumers by prioritizing intrusive, annoying ad experiences when their prime reason for being online was pursuit of their passions. The mass opt-out of ad tracking in IOS 14 should be a wakeup call for marketers. As an industry, we need to meet customers’ expectations for better ad experiences head on. As third-party cookies meet their inevitable fate, marketers need new strategies to make up for the loss of individual targeting. While companies like Google and The Trade Desk have proposed technology solutions for replacing cookie-based marketing, they don’t solve for what consumers really want in a relationship: authenticity. Consumers have come to expect more from brands than broad recognition of their demographic makeup. A whopping 86 percent of consumers said authenticity matters when choosing which brands to support. In stark contrast, only 35 percent say that they feel like brand marketers meet them where they live. While third-party cookies did indeed make it easier to reach consumers at multiple points in the marketing funnel, this level of efficiency often came at the expense of a consumer experience that made people feel good about the brands pursuing them. Beyond serving as a constant reminder that their data was being used to sell them things, targeted advertising was too interruptive and repetitive. This is a nearly unanimous sentiment; an overwhelming 91 percent of consumers said that ads are more intrusive. Now that third-party cookies will be taken out of the equation, marketers will need to start taking consumers’ demand for authenticity seriously to maintain high performance and build long-lasting, trusting relationships with their customers. Targeting between the lines Affiliate marketing is well-positioned to deliver on that need. The unique contextual control inherent to affiliate marketing campaigns allows marketers to get in front of their preferred customers in their native environments. Marketers can deliver highly relevant in-the-moment experiences where their content can be suited to match the context where it is served. With Cookies Crumbling, Publishers Push Brand Metrics This is the fulcrum of authenticity: meeting customers where they live while showing respect for their tastes and priorities. And it was what marketers will need to do to win the hearts, minds and loyalty of today’s consumers. Affiliate marketing is a simple and brand-safe way to build a relationship with consumers that aligns subtleties in their brands with consumer priorities and purchasing power. Here’s an example. Let’s say a vegan skincare company wants to reach like-minded consumers on sites with content that aligns with their values. This is a group that is known to be keenly sensitive to the underlying choices that companies make in manufacturing their products. It these companies are truly living their values; their target consumers will appreciate seeing brand messages in places that align their values with their wallets. Further, as an inherently opt-in ad experience affiliate marketing demonstrates respect for consumer data and privacy. Consumers will only encounter an affiliate marketing campaign when they proactively browse their interests online. Take, for example, a consumer who is passionate about organic skincare and basketball. (Separately!) This person will be more receptive to an ad for cruelty-free lotion on a vegan recipe site than when they’re looking up the Knicks score. Why? Like any conversation, it will feel more authentic to encounter the lotion adjacent to content about their physical well-being. On a sports hub, this ad can look and feel more like an interruption. Reaping the benefits of publisher trust The end of cookies has increased publisher power because the advertising ecosystem is more dependent on their first-party data to function efficiently. As a result, the ad-tech industry is sprinting to develop new technologies that aggregate publisher data. Publishers are skeptical about opting in to solutions from companies like Prebid and LiveRamp because they fear losing control over their audience experience and privacy. Rather than looking for cookie substitutes that work around publishers, companies can collaborate with them to leverage the trusting relationships they’ve built with their readership. Consumers turn to these sites for guidance and inspiration on what to buy and where to buy it, and the best publishers have a deep understanding of what inspires and moves their audiences to action. Affiliate marketing uniquely leverages that trust to reach audiences in truly authentic ways. By working with publishers, advertisers can leverage audience insights to develop messaging and placements that consumers find meaningful enough to influence their behavior. Meeting customer expectations We need to do better to rebuild trust with consumers after years of looking past their complaints. Authenticity is a must, and marketers need to understand that without cookies consumers have even more purchasing power. If we continue to ignore their demands, they’re going to take their business to others who listen. There is a better way right in front of us. Affiliate marketing provides an elevated consumer experience that complements their journey instead of interrupting. By investing in affiliate, marketers will be set up for short-term survival as cookies disappear and for long-term sustainability as customers flock to authentic experiences that appeal to their individuality and passions. Instagram Begins Testing Native Affiliate Tool, More Ways for Creators to Set Up Shops