Affiliate marketing is a powerful tool for driving consumer engagement and sales, but like all marketing tactics, it is not without its risks. The European affiliate marketing landscape is highly competitive, with thousands of brands and affiliates vying for attention. Despite the opportunities for growth, many European brands have faced significant challenges with affiliate marketing campaigns that ultimately failed. From issues with affiliate transparency to mismatched goals and poor execution, affiliate marketing campaigns can falter for a variety of reasons.
In this op-ed, we will dive into the common mistakes that have led to affiliate marketing failures in Europe and explore actionable lessons that can help small and medium-sized businesses avoid these pitfalls.
1. Choosing the Wrong Affiliates: A Lack of Vetting
Choosing the right affiliate partners is critical for success. Unfortunately, many European brands fall into the trap of partnering with affiliates based purely on reach and visibility, rather than audience alignment and engagement.
In France, La Redoute, an online retailer, launched a major affiliate marketing campaign to promote its fashion line in collaboration with fashion influencers. However, the results were disappointing. Many of the chosen influencers had broad audiences but lacked the authenticity or expertise to promote fashion items convincingly. As a result, their followers did not resonate with the messaging, and the campaign failed to generate the expected sales.
The key takeaway is that simply choosing affiliates based on the size of their audience is not enough. Brands must ensure that their affiliate partners have a highly engaged, relevant audience that aligns with the brand’s values and product offerings.
Lesson Learned: Brands should conduct thorough vetting of affiliate partners, focusing on engagement rates, audience demographics, and relevance. Quality over quantity is key in affiliate marketing.
2. Underestimating the Power of Content Quality
In affiliate marketing, content is king. If the content produced by affiliates is not engaging or relevant, the campaign is bound to fail. Unfortunately, many European brands overlook the importance of content quality when working with affiliates.
An example of this failure occurred with ASOS, an online fashion retailer in the UK. In an effort to scale their affiliate marketing, ASOS collaborated with numerous affiliates, but many of these affiliates lacked the creativity or expertise to produce high-quality content. Rather than delivering content that spoke to their audience’s aspirations and needs, the posts were often generic and lacked engagement.
Lesson Learned: To succeed in affiliate marketing, brands must ensure that the content produced by affiliates is high-quality, engaging, and resonates with the target audience. Collaborating with skilled content creators and giving them creative freedom can result in better outcomes.
3. Ineffective Commission Structures: Encouraging the Wrong Behavior
Incentives and commission structures play a crucial role in affiliate marketing. Unfortunately, poorly designed incentives can lead to affiliates pushing products in ways that are not aligned with the brand’s long-term objectives.
Bose, a premium audio brand, faced a setback with an affiliate program in Germany when affiliates were paid hefty commissions for driving high-volume sales, regardless of the quality of customers they brought in. As a result, many affiliates focused on volume, attracting discount-seeking consumers who weren’t likely to make repeat purchases. The brand’s customer acquisition costs skyrocketed, and their margins were squeezed.
Lesson Learned: Brands should design commission structures that reward affiliates for bringing in high-quality customers, not just those who make one-time purchases. By focusing on long-term customer value, brands can avoid shallow transactions and foster more sustainable growth.
