While the history behind affiliate marketing remains murky and disputable, it is absolutely obvious now that not only is this marketing type growing fast, but it has already turned into a massive global industry. Having survived all possible vicissitudes, affiliate marketing industry is a testament to its nature as a continually evolving business model, and one that still tends to operate under the cover of mainstream media.
The research below was provided by experts in affiliate marketing, Indoleads affiliate network, the best e-commerce affiliate network 2019 by Affbank.
Focus on thriving
The affiliate marketing industry is estimated to be worth over $12 billion, with the US leading the way followed by EU, as these are the markets with the most online trade. According to Forrester Consulting and Statista data, the US affiliate marketing industry is expected to reach $8.2 billion by 2022, with more than 80% of brands utilizing this potent way of marketing.
That said, its presence in mainstream digital marketing is unquestionable. With a report by Business Insider Intelligence stating that affiliate marketing is a growing source of revenue for online retailers, it seems it has all the chances to beat its own records in the nearest future.
More than 40% of US retailers have cited affiliate programs as their leading customer acquisition channel. On the publishers’ side the search interest grew considerably. According to Google Trends, between December 2017 and July 2018 alone, search interest for the term “affiliate marketing” rose by 44%. According to an independent survey commissioned by eMarketer, 90% of advertisers included in the survey said that affiliate programs were important or very important to their overall marketing strategy, with the majority of publishers reporting that affiliate partnerships drove more than 20% of annual revenue.
Prospects for publishers
Another recent survey offers a closer look at just how much income US affiliate marketers are bringing in. According to it, 10% of marketers generated more than $50,000 in affiliate income. The majority, 65%, said they were making up to 20% of their annual revenue from affiliate programs. 76% of publishers prefer affiliate marketing programs for the easiness of their websites’ monetization. The survey also showed a link between time frame and revenues. Among the publishers with the largest revenues, 60% had been using affiliate-marketing strategies for five years or more.
And the million-dollar fortunes are not just tales. $7 million in affiliate marketing revenue was produced by one influencer in a single year. Jason Stone generated $7 million in retailer sales between June 2016 and June 2017 through affiliate marketing alone.
The niches to aim for
It’s the retail sector that’s driving the bulk of this business, with a number of niche verticals dominating the scoreboards. Out of the top 20 most popular affiliate program verticals in the US, fashion leads with 18.7%, followed by sports and outdoor goods (14.6%) and beauty products (11.1%).
Fashion has always been one of the mist driving niches in e-commerce, so it’s leading position is no wonder. However, sports has recently snapped at its heels.
Affiliate Marketing vs Google AdSense
Although Google AdSense is one of the top revenue generators for publishers along with affiliate marketing, the downsides of it are quite considerable.
It’s much harder to get an approved AdSense account, than to get into an affiliate network. Generally, AdSense pays less, while Affiliate ads are more attractive and generate more money than Google AdSense. Affiliate products for all niches can be easily found, but AdSense is not allowed on certain niches. What’s more, according to recent surveys, 77% of publishers acknowledged that revenue generated from affiliate marketing programs increased or stayed consistent in a single year period of time.
Affiliate marketing is actually very beneficial for almost every business. Accounting for more than 16% of all online orders, this inexpensive, effective way to increase revenue even for small business websites is unparalleled. Not giving it a chance is simply leaving cash on the table.
The opportunities await
There is no secret that e-commerce is growing faster than ever before, especially with the consumption through mobile devices bringing the heat. According to the newest Business Insider Intelligence report, e-commerce sales are projected to double to $1.1 trillion by 2023, with mobile commerce sales totaling more than $447 billion.
As it is stated in the report that 84% of shoppers say they use Google to help them find product ideas before making a purchase, which means affiliate marketing content can drive long-term sales conversions via search. Moreover, the most progressive social media, Instagram and Snapchat, are rolling out e-commerce tools for their apps, allowing brands to target millions of young users. The meaning of this is straight and clear: the number of potential shoppers who will use social media to discover products will grow rapidly.
In this perspective, affiliate marketing, social commerce, and video commerce are very likely to present real and meaningful opportunities to reach consumers in novel, creative ways to drive performance-based results.
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