Affiliate marketing has become one of the best ways for businesses to promote their products and store. With its revenue-sharing model, affiliate marketing has benefited both merchants and affiliates.
It has become a great cost-effective way of advertising or marketing, with low risk. As affiliate marketing is performance-based, merchants only have to pay affiliates, when they see tangible results. For affiliates, it has become a great way of earning a passive income.
The affiliate marketing spending was $5.9 billion in 2018 and it is set to rise by over 39 percent in the next 5 years. The market spending will cross $8 billion by 2022. This translates into growing interest and the rapid adoption of affiliate marketing in many industries.
Market spending means that industries are pouring money into affiliate marketing for the promotion of their products. Affiliate marketing has evolved from being used just by online stores and websites to other traditional industries such as pharmaceuticals, etc.
According to a report Web Market Support, over 81% of brands run an affiliate marketing program for their stores and over 84% of publishers or bloggers create content for affiliate marketing. This statistic suggests that affiliate marketing has had a rapid adoption over the years.
Since it is a low-risk and cost-effective method of marketing, it has gained adoption even among smaller businesses and startups. Small businesses, who usually struggle with getting sales because of customer apprehension of a new brand, have benefited greatly from affiliate marketing. Affiliate marketing has helped in building customer confidence and trust among newer brands.
Fashion has the highest number of affiliate programs, with over 23% of the total share in the market. This is followed by sports and outdoors category with 18% and health and beauty coming in at 3rd place with 14 percent share in the market.
This means that a high number of customers are looking at affiliates/influencers for recommendations on fashion products. Since fashion is quite a broad term, it includes products such as clothing, fashion accessories, etc.
The search interest in affiliate marketing has almost doubled. The interest from the period of August 2016 to August 2019 has more than doubled. Related topics such as influencer marketing have also shown a substantial rise.
This suggests that global interest in affiliate or influencer marketing has risen, with many people looking at earning passive income through affiliate marketing. Also since online shopping is becoming the norm and offline or brick and mortar shops on a downfall, affiliate marketing is going to keep generating interest.
Merchants are seeing an average of 23% of their revenue coming in from affiliate marketing. This is on par with other popular marketing strategies such as search engine optimization (SEO) or pay-per-click (PPC). Over 15% of the digital media industry's revenue is being accounted for from affiliate marketing.
This, however, does not mean that a business should abandon other types of marketing. The data highlights that affiliate marketing can work great when combined with other marketing strategies, it also helps in boosting sales or revenue of a company.