Inside the Affiliate Marketing Product Boom: A Founder's Perspective on Market Trends

Affiliate marketing is a real powerhouse in the digital marketing realm and in recent years has gone through significant growth and transformation. Chances are, you’ve been on the receiving end of it yourself!

Now, it is not the time to ignore this approach, since the power of social media, increased device usage, and the boom of creator-led media are all here to help your business thrive.

According to _Influencer Marketing Hub__, the affiliate marketing industry is experiencing robust growth and there are approximately 9,600 global services and companies related to affiliate marketing in 2023 including agencies, platforms, and various other organizations or apps providing affiliate services. Additionally, Astute Analytica forecasts that affiliate marketing spending will reach a staggering US$ 39,805.4 Mn by 2031.

For context, MoreNiche reported that global affiliate revenue for affiliate networks amounted to $6.5 billion in 2006.

Exciting numbers, huh?

Here are some more.

According to Performance marketing association survey data:

• 84% of businesses find affiliate marketing to be more profitable than other marketing methods.
• In 2021, affiliate marketing contributed to around $71 billion in ecommerce revenue in the United States.
• On average, every $1 spent on the affiliate channel resulted in $12 in ecommerce revenue across all industries.
• 84% of media publishers and bloggers create content for affiliate marketing.
• Retail brands were responsible for 76% of affiliate channel spending, with about one-third going to clothing affiliate programs.

Again, number-heavy facts, but you and I know that marketing is nothing without numbers.

The explosive growth of the affiliate marketing industry in the 21st century can be credited to a few key factors. First off, the surge in digital operations and the widespread use of mobile devices. Then, the subsequent digitalization of services, the advancements in digital marketing, and the increased volume of online purchases, fueled by a shift in consumer behavior, have all contributed to the flourishing landscape of affiliate marketing.

Affiliate marketing's widespread appeal also stems from its affordability, and the high return on investment in terms of both time and cost when compared to alternative marketing approaches. Businesses caught on the wave, adapting their operations and creating affiliate marketing programs to drive their revenue. Then, the social media boom was exactly what gave affiliate marketing the kick in needed, coupled with the rise of influencer marketing and brand partnerships. Thanks to the significant increase of social media usage (from 5% in 2005 to 79% in 2019 according to Our World In Data), platforms like Facebook and Instagram became key to affiliate marketing campaigns.

That’s kind of how we got here. Now, it's not just something companies do on the side; it's a real way to make money. As we navigate the landscape, it's evident that the rise of Cost-Per-Action models is not just a trend but an exciting narrative for sellers on the global stage. So, what’s in plan? In this article I’d like to introduce to you current trends in affiliate marketing and most recent market breakthroughs, seen through the lens of a founder.

Choose your fighter

A growing market is nothing without innovation, and the very expected emergence of newer tools is a great indicator for market relevance. Just as with any increasing complexity, humans start to seek (and make) tools for dealing with the tools we already have. The rapidly growing affiliate marketing industry is no exception to the rool. Here are the purposes, and some of the tools we’ve got so far:

• Affiliate Tracking:This is software offered by Impact Radius, Awin, and Post Affiliate Pro and it provides advanced tracking and analytics for affiliate marketing campaigns, letting brands and their affiliates optimize their strategies based on performance data.
• Influencer Marketing Platforms: Companies like AspireIQ, Upfluence, and CreatorIQ can help brands connect with influencers (including micro-influencers), streamlining the process of finding the right partners for affiliate marketing.

• Content Creation Tools:If you need a little help creating the visuals, tools like Canva and Adobe Spark let affiliates and marketers easily create high-quality, engaging content for promoting products across almost any channel of choice.
• Social Media Management Tools: For managing affiliate marketing content across multiple social media platforms, doing things like scheduling posts, or analyzing engagement metrics – Hootsuite, Buffer, and Later are the way to go!

• Email Marketing Services: Big-time players like Mailchimp and ConvertKit are well-known powerful tools for creating email lists and launching outreach email campaigns with personalized affiliate offers and content. You can also track opens, clicks, and conversions.

• SEO Tools: SEO-helpers such as SEMrush, Ahrefs, Moz and similar services provide affiliates with critical insights into keywords, competition, and performance, helping you optimize content and improve visibility in search engine results.

To conclude

In recent years affiliate marketing has become not only a useful tool, but a robust solution for sales, bound to be a prominent player in the future of marketing as a whole. And for that, there are many reasons. Its low-risk nature provides a secure avenue for both businesses and marketers and the potential for high rewards and a scalable income adds an enticing element to the affiliate marketing landscape. With affiliate marketing you simultaneously build brand awareness and drive traffic, presenting itself as a holistic marketing solution and an attractive choice in the evolving landscape of digital marketing, making it a pivotal player in shaping the future of promotional strategies. So, are you in?