In the latest episode of the Affiliated Podcast, Matt Villa, the head of U.S. sales at MGID, dives into how AI tools are reshaping affiliate marketing, particularly for Generation Z. Here’s a look at how AI is driving this transformation and why Gen Z is leading the charge.
Understanding AI in Affiliate Marketing
AI in affiliate marketing generally falls into two categories: generative AI and machine learning AI. Generative AI focuses on creative tasks — designing ad campaigns, crafting content and developing visuals. Conversely, machine learning AI is key for optimizing performance, targeting specific audiences and aligning campaigns with clear objectives. Both forms are crucial, and knowing when and how to utilize each is essential for success.
Gen Z's Unique Approach to AI Tools
One of the most fascinating shifts we've seen is how Gen Z affiliates are adapting AI tools to their strategies. Unlike previous generations, Gen Z grew up in the digital age, with Google and YouTube as their primary sources of information. This background gives Gen Z a unique advantage — they're not just consumers of AI; they're creators of it. Many of them are coding their own AI tools, customizing tools to fit their specific needs and optimizing their campaigns in ways that older generations might not have considered.
The Value of Proprietary vs. Platform-Specific AI
Custom-built AI tools can be powerful, but affiliates shouldn’t overlook the importance of platform-specific AI. For instance, if you're an advertiser running campaigns on a native advertising platform, the AI tools provided by that platform are often optimized for its metrics and goals. This alignment ensures higher engagement and better performance.
Navigating Ad Funnels with AI Tools
Some advertisers might skip the pre-sell page or advertorial and go directly to a video landing page or VSL. Although, this approach can impact success — either positively or negatively — depending on the network. Each network has unique publishers and tactics, so understanding where success lies is imperative. However, many affiliates struggle with creating a complete funnel, from initial content to the final purchase. By utilizing AI tools, affiliates can significantly enhance engagement throughout the funnel, which remains key to success.
Why Engagement Metrics Matter Most
In native advertising, engagement is king, and click-through rates (CTR) are the primary metric we focus on. CTR hinges on two critical factors: the ad image and the headline. The image is the first point of contact, grabbing the audience's attention, while the headline provides a snippet of content that entices users to click. The ultimate goal is to drive users to the landing page or advertorial, where the real conversion happens.
Creating and Managing Ad Creatives
AI tools are incredibly helpful for crafting and managing ad creatives. They help avoid clickbait and ensure compliance with network standards, allowing you to create ads that engage users without being offensive. AI can innovate and drive better results, maintaining high click-through rates without resorting to extreme tactics.
Enhancing Analytics with AI
When it comes to analytics, AI improves the tracking of consumer behavior and campaign optimization. It helps affiliates make better decisions based on demographic and performance data. AI also creates and manages targeted audience segments, making retargeting strategies more effective.
Streamlining Campaign Management
AI simplifies campaign management by automating tasks and reducing the need for multiple personnel. This automation allows solo entrepreneurs and smaller agencies to compete more effectively by focusing on strategy and innovation. AI boosts efficiency and results, making it a crucial element of modern advertising.
Shifting Trends in Advertising and AI’s Role in Native Advertising
Evolving Traffic Sources
Advertisers are increasingly exploring native advertising due to its contextual targeting capabilities. Unlike traditional search ads, native ads blend with content and target based on keywords found in URLs or content. This adaptability makes native advertising a natural extension for those experienced in search advertising.
Changing Information Consumption
As content consumption evolves, so must advertising strategies. With advancements like AI and smart notifications, there’s a notable shift toward audio content consumption. For example, hearing notifications read aloud via devices like AirPods reflects a growing trend where people interact with information differently. Marketers need to adapt their strategies to how content is delivered, not just its visibility.
AI-Driven Personalization
AI is revolutionizing how ads are customized and tested. Traditionally, finding the best-performing creatives involved time-consuming A/B testing. AI now allows for faster, more efficient testing of various ad versions and landing pages without significant budget expenditure. This means advertisers can quickly identify what works best, reducing costs and improving conversion rates.
Getting Started with Native Advertising
For newcomers to native advertising, especially those who’ve faced challenges with other platforms, MGID offers a low-barrier entry. Start with a modest budget and scale gradually while using AI tools for campaign optimization. MGID’s support team ensures compliance and effective campaign management, minimizing the learning curve and costs associated with new platforms.
Successful Case Studies
MGID has seen success across various sectors. Health-related products, particularly diet and skincare items, perform well. E-commerce, especially gadget-related products, also shows strong results. For example, products like hearing aids and smartwatches have proven effective on native platforms, offering a solid return on investment.
Opportunities with MGID
MGID's partnership with ClickBank offers new affiliates a 25% bonus on their first deposit, making it an attractive option for those looking to experiment with native advertising. This offer provides a significant boost, especially beneficial for those starting with smaller budgets.
In summary, as the digital advertising landscape continues to evolve, embracing native advertising and AI-driven tools can provide new opportunities for growth and efficiency. With platforms like MGID, advertisers can navigate these changes more effectively and make the most of their campaigns.
