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Where Should Financial Marketers Allocate Their Budgets In 2024

Shagun Mehta

Shagun Mehta

PR and Content Specialist
  • Last Updated: January 31, 2024

As we get ready to flip our calendars to 2024, financial marketers will set up new ambitious goals, embrace fresh strategies, and adapt to the changing needs of customers.

In this dynamic, success hinges on tactical budget allocation and innovative marketing approaches. And affiliate marketing as a strategic linchpin, promises unparalleled benefits.

In this blog, we explore the nuances of this evolving landscape, understanding how smart budgeting and affiliate marketing– offering a mix of cost-effectiveness, wider reach, and consumer trust – can be a decisive strategy for success.

If you’re ready to kickstart the new year with a customized affiliate marketing program for your financial brand, get in touch with our team.

Understanding the Current Financial Marketing Landscape

Consumer behavior, once predictable, is now evolving all the time. Today they prefer personalised experiences and transparency from financial institutions.

Additionally, a very competitive landscape has fintech companies challenging established players by disrupting traditional methods of financial marketing.

Staying ahead of these changes will be crucial in developing strategies that are effective for growth.

Why Affiliate Marketing?

Fintel Performance Dashboard

Affiliate marketing, a key, strategic partnership between a financial institution and third-party affiliates offer many unique benefits. It combines cost-effectiveness, wider reach, and consumer trust – the latter being crucial in the financial services sector. Let’s see how.

Affiliate marketing works on a pay-per-performance model where you pay only for actual results, making it a cost-effective strategy.

Secondly, it leverages the influence and audience base of the affiliate to allow for a wider reach. Third, it relies on metrics that measure performance and effectiveness – click-through rates, conversions, and customer acquisitions.

For example,
Fintel Performance,
the robust multi-event tracking technology can not only track every penny spent but also provide data that can be mined for insights to identify where it makes the most sense to spend your dollars.  

Lastly and most importantly, affiliate marketing nurtures trust through strategic partnerships. Affiliates with strong reputations play the role of a trusted intermediary and bring credibility that resonates with customers.

Allocating Budget for Affiliate Marketing

According to research by Forrester, a substantial 80% of marketing teams spend at least 10% of their budget on partnerships.

To ensure the program’s success, allocate sufficient time and resources to test different affiliate partners and determine the best strategies for your brand and target audience.

Assess factors like other major investments, the need for additional team members, upcoming product innovations, and budget constraints.

Understanding your product’s appeal and competitiveness is crucial. Determining the right budget for affiliate marketing requires careful consideration.  

Conduct benchmark research, define affiliate marketing’s role in your broader strategy, the size of the institution, and projections based on past performance, and market research will help in providing a roadmap and regularly review your budget allocation to optimize its effectiveness.

Clear, measurable goals provide direction and ensure a targeted approach keeping in mind the specific objectives and challenges for the year.

Finding the Right Affiliate Partners

Now that you’ve outlined your goals and budget, it’s time to select the right affiliate partners for your FI’s campaigns.

It could be anyone from a personal finance influencer like NerdWallet or a trusted publication such as Forbes, depending on the audience you wish to reach out to. While deciding on potential partners, some key factors influencing your budget also come into play:

Cost per conversion :
Calculating how much each conversion costs through a specific partner.

Audience size :
This is in direct proportion to the potential reach and impacts budget allocation.

Past campaign success rate :
Evaluating their track record will give you an insight into their influence, credibility, and effectiveness.

Our extensive affiliate network, tailored specifically for the financial industry helps you find affiliates that are perfectly aligned with your brand and goals, saving time, and optimizing the budget.

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Performance Monitoring and Optimization

Keeping an eye on real-time monitoring and regular analysis will help in understanding what is working, and areas that need a pivot and are key to a successful marketing campaign.

Using essential key performance indicators (KPIs) like conversion or click-through rates and customer lifetime value helps determine campaign effectiveness.

While affiliate marketing is a must-have, do not undermine the importance of diversifying your marketing approach.  Consider using digital avenues like content marketing, social media advertising, and SEO/SEM.

Not only will this well-rounded approach guarantee your brand’s presence across various platforms and diverse audience segments, but it’ll also help your brand stay agile to evolving trends and shifts in the market.

Staying Compliant

There’s no debate here – compliance with financial regulations is a must.

Fintel Check our AI-driven content monitoring and compliance tool, with its user-friendly features is designed to take the heavy lifting away from your in-house teams.

Your compliance teams can manage, monitor, and police your FI’s partner activity so your marketing efforts are not just effective but also ethical and legal.

As you plan your financial budgets for 2024, keep three words in mind – use it wisely. If you wish to say hello to 2024 with a thriving affiliate program, reach out to our team today.

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