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July 22, 2024 0 Comments

Changes & Challenges in Affiliate PR:

Updates from Our Consumer PR Experts

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Author: TR Team

Affiliate marketing has been a game-changer in the PR world, providing a strategic edge for consumer brands seeking press coverage. Several years ago, it was just a buzzword. But today, affiliate marketing has become essential for PR success, with over 80% of brands reportedly using an affiliate program. 

Without an affiliate PR or marketing program in place, brands face significant hurdles in getting noticed by digital publications and consumers alike. The best PR agencies understand this shift — and how to leverage these strategies effectively. 

In this post, we’ll explore why affiliate marketing is crucial for brands of all sizes and how it can be used to secure media coverage for consumer brands in crowded industries.

The Affiliate Marketing Boom and Financial Hurdles for Startups

A few years back, affiliate marketing was just beginning to gain traction as a clever way to enhance a brand’s PR efforts. Around 2018, only the savviest PR practitioners understood its power as a media relations tool. Today, it’s practically a must-have. 

If your consumer brand isn’t leveraging affiliate marketing—whether that’s through Amazon, Walmart.com, Target, or platforms like ShareASale or Impact—you’re likely missing out on significant press opportunities. Digital publications, especially those focused on product reviews and roundups, increasingly prioritize products that offer affiliate commissions.

But here’s the kicker: Affiliate marketing can be a tough nut to crack for smaller brands or startups. Running an affiliate program requires a substantial budget, and not all brands can afford to set aside funds beyond their primary expenses like product development and marketing. There are some more budget-friendly options in terms of affiliate platforms, but even then, it’s an added cost that can be daunting for emerging brands. This is where an affiliate PR agency can provide guidance and help manage these challenges effectively, to ensure the best possible return on your affiliate investment.

Margins and Affiliate Rates: The New Reality

One significant change we’ve seen is the impact of affiliate programs on consumer brands’ profit margins. The 8-10% kickback rates that were competitive a few years ago simply won’t cut it for an affiliate program anymore. Now, to get featured in top-tier media outlets like Wirecutter or BuzzFeed, brands must be willing to offer 15-20% commission rates — at least. 

In some cases, these A-list outlets also require a special discount code, meaning brands could be giving away nearly half of their margin for certain products or holiday specials. For smaller businesses, these higher rates are intimidating and risky, and it’s crucial to welcome your PR team to the table for careful financial planning around each affiliate marketing offering, and for helping manage the program over time.

The Shift in Media Revenue Models and Challenge of Maintaining Authenticity

Why the increase in affiliate demands? It all boils down to the financial struggles media outlets are facing today. In the past, advertising placements in newspapers and programs were a massive source of revenue for newsrooms. Now, traditional ad revenue isn’t generating nearly as much profit as it once did. So affiliate marketing has become a way to bridge that gap. 

Some affiliate platforms even go beyond commission rates, requiring brands to participate in cost-per-click (CPC) programs, where brands might need to budget between $2,500 and $5,000, in addition to paying $1.50 to $2.00 per click, to be included in product roundups. This model only works if it drives sufficient traffic back to a brand’s website, generating enough conversions to cover these costs.

As PR practitioners, we are forced to ask: Is it truly earned media, if brands are paying a fee through affiliate links? This is a contentious gray area for media relations professionals. In its purest form, PR is about telling compelling stories and securing organic media coverage based on merit alone. However, with the financial pressures media outlets face today, the lines between earned coverage and pay-for-play opportunities are blurring for consumer publications. In the long term, PR practitioners must work diligently to ensure their clients can back up their claims and live up to consumer expectations, to ensure that consumers can continue to confidently place their trust in listicles and product round-ups.

The Future of Affiliate Marketing in PR

So, where do we go from here? In the next two to three years, our consumer media experts predict the reliance on affiliate marketing will continue. The market is saturated, and brands need to leverage every possible edge to stand out. 

Our advice for consumer brand leaders, if you’re raising funds or planning your PR budget, is to allocate some funds for continued investment in your affiliate programs. It might feel like a hefty upfront cost, but in today’s landscape, it’s essential.

Despite these changes, one thing remains constant: PR is all about storytelling. Brands might have all the internal pieces in place, like a strong sense of who they are and what they stand for as a business, but crafting a narrative that resonates with the media—and ultimately with consumers—is where PR professionals shine. The messaging that works for an Instagram ad might not cut it for a pitch to an editor. And that’s where PR comes in. The best PR agencies know how to find the right angle and when to pivot to something new.

Affiliate marketing has become a critical PR tool, especially for consumer brands. While it poses challenges for smaller brands, it’s an essential strategy for securing press coverage in today’s digital landscape and can ultimately give your company the edge it needs to compete with bigger brands. 

Want to learn more about affiliate marketing and PR? Check out this recent episode of the PR Wine Down podcast for a deeper dive. And if you’re ready to take your brand’s consumer PR program to the next level, reach out to us here.

AUTHOR

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Trust Relations Team