Online marketing can take many different forms. Today we'll cover the differences between digital marketing and affiliate marketing. This post breaks down the differences based on core principles, goals, and benefits.
What is digital marketing?
Digital marketing is a broad term that refers to all types of marketing that rely on the Internet and digital devices to sell products and services. Companies use digital channels such as search engines, press releases, social media profiles, emails and websites to reach current and potential customers.
In other words: Digital marketing is a collective term for marketing on the Internet.
The main marketing channels of digital marketing
Digital marketing includes many techniques, strategies and channels that allow companies to share their messages online, but these are the most popular channels:
The main advantages of digital marketing
- Global reach: Digital marketing can reach a global audience.
- Cost-effective: It is often cheaper compared to traditional marketing.
- Measurable results: Companies can track performance metrics such as conversions and ROI.
- Customer Engagement: Enables ongoing communication with customers via email and social media.
Digital Marketing Goals
The goals of digital marketing are often diverse:
- Brand Awareness: Be visible in a crowded market.
- Lead generation: Attract potential customers and guide them through the sales funnel.
- Customer loyalty: Build long-term relationships with your audience.
- Increased Sales: Increase online and offline sales through a mix of tactics.
What is Affiliate Marketing?
Affiliate marketing is a type of performance-based digital marketing in which companies (or advertisers) pay affiliates (or partners) to drive traffic or sales to their website. Affiliates earn a commission for each customer who clicks on their unique tracking link and then makes a purchase on the advertiser's website.
The main components of affiliate marketing
- Affiliate networks: A platform where companies can list their products or services and their partners can join to promote those products.
- Affiliate tracking links: A special URL that tracks the partner's traffic and sales for the company.
- Commission structure (or affiliate terms): The compensation model often includes a percentage of the sale or a fixed amount per conversion generated through the affiliate's tracking link.
Benefits of Affiliate Marketing for Advertisers
- Low risk for the type of advertising: Advertisers only pay affiliates when a sale or lead is generated.
- Scalability: Companies can scale their marketing without large upfront investments.
Benefits of Affiliate Marketing for Advertisers
- No inventory required: Advertisers only need to generate traffic to get paid. No fulfillment, manufacturing, or back-end work is required.
- Affiliate Income Source: Affiliates can earn money by promoting products that they do not own or manufacture.
- Flexibility: Partners can work independently and set their own schedules.
Goals of affiliate marketing
The goal of affiliate marketing is simple:
- Revenue Generation: Affiliates promote other people's products and generate commissions through conversions.
Affiliate marketing vs. digital marketing
The main difference is that digital marketing is a broad categorical term that includes affiliate marketing.
- Digital marketing is a broad umbrella term that includes all forms of online marketing. It includes online marketing channels such as SEO, PPC, content marketing, social media marketing and email marketing. The overall goal of digital marketing is to reach and retain potential customers through these various online channels.
- Affiliate marketing is a special type of digital marketing. Companies work with affiliates (individuals or other companies) to promote their products or services. Affiliates receive a commission for every sale or lead generated through their unique tracking link.
So there you have it. The key takeaway is that your digital marketing strategy should include both affiliate marketing and the other marketing channels available to you to reach your ideal prospect online.
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