The Future Of Affiliate Marketing
Here are 15 interesting affiliate marketing stats for 2020
1. Fast growth with no signs of stopping!
(Source: Business Insider)
Since 2015, revenue from affiliate marketing programs grows by 10% annually. The projections are this impressive trend to continue at least until 2021.
2. Affiliate marketing is a global industry worth well over $12 billion.
Not only is affiliate marketing growing fast, but it is also already a massive global industry. In 2017 it was worth over $12 billion, with the US and the EU leading the way. Little surprise there, as these are the markets with the most online trade.
3. Affiliate Marketing catches up with email marketing.
(Source: Business Insider)
Affiliate Marketing generates at least as much as email marketing, contributing to about 15% of the total revenue made through digital marketing efforts. It is very likely that in 2019 affiliate marketing already overtook email.
4. PeerFly boasts over a quarter of a million publisher accounts.
PeerFly is the largest affiliate marketing network in the world. It has 75,000 active publisher accounts around the globe and over 250,000 accounts in total that are responsible for more than 1 billion clicks and the impressive 8 million transactions.
5. Awin affiliates earned over $700 million last year.
Awin recently acquired ShareASale, another major network in the affiliate field. Boasting an impressive portfolio and history, the network distributed $734 million among its contributors. Who are no less than 100,000. Other top affiliate programs include Amazon Affiliates, eBay Partner Network, Rakuten Linkshare, Clickbank, and many more.
6. 81% of brands rely on affiliate programs.
Affiliate marketing is popular among brands and publishers alike because it involves very small investment. It is a performance-based form of marketing, meaning that advertisers pay only what they get for, while better performing publishers are incentivized by increased income.
7. Some of the best affiliate programs are to be found in web hosting.
(Source: Hosting Tribunal)
Web hosting is an incredibly competitive field for a number of reasons: there are many high-quality service providers who compete online for an entirely digital product. Some of the best paying affiliate programs can be found there because a few years ago HostGator showcased the AM potential.
This practically changed the way the hosts marketed themselves. Nowadays, practically all hosting – even those with very cheap plans or with narrow specialization – providers offer lucrative affiliate deals. The Bluehost affiliate partners received over $5 million in 2018 alone.
8. Still, fashion rules supreme
(Source: AM Navigator)
A study from 2015 revealed that 18.70% of all affiliate marketers promote fashion products and services. Sports and outdoor activities follow with 14.60%, while health and wellness marketers account for 11.10%.
Correspondingly, the affiliate networks focus primarily on those three categories.
9. Over 5 billion clicks and more than 170 million transactions
The power of well-presented affiliate links can be illustrated best with some hard numbers from 2017.
Users clicked more than 5 billion times and the affiliate marketing networks carried out more than 170 million transactions worldwide.
10. Affiliate marketing is suitable for all ages
A 2016 Statista survey reveals that the largest segment of affiliates falls within the 25-54 range. 81.82% of all affiliates work on their side (or main, for some) income in the most active years of their lives. The biggest share, 31.86% are aged 35-44, while nearly 12% of all affiliate marketers are aged 55 and above.
In all likelihood, these marketing platforms will see greater adoption rates among the elderly, as the technically-savvy young and middle-aged users of today grow older.
11. Reality check – affiliate marketing statistics reveal a 1% conversion rate.
That’s largely true. On average, the affiliate conversion rate hovers around 1%. Now, this percent is an average estimate rather than a proven fact because many affiliates keep personal rates to themselves.
Given the fierce competition in most marketing niches, you can imagine that reaching 2% or 3% conversion is a valuable knowledge that is deemed best when guarded well.
12. $7 million for the champion!
1% conversion rate might be the average, but that doesn’t mean that you can’t excel with ingenious strategy and persistence. In less than two years, Jason Stone generated over $7 million in affiliate sales, harnessing the marketing potential of Instagram.
13. 94% of publishers use more than one network.
If you are wondering how to start your affiliate marketing journey, make sure to subscribe to more than one network. A survey done by Forrester on behalf of Rakuten Marketing reveals that 94% of publishers use two or more affiliate programs.
It makes a lot of sense, as not all AM platforms are made equal. 39% rely on three separate networks to procure products and earn commissions, while the hefty 20% work with five or more affiliate marketing companies.
14. Optimize your website – organic search is ideal for conversions.
Organic search drives sales like nothing else. Research by MOZ states that organic visitors are 5.66 times more likely to convert than those driven by paid traffic.
Being number one in paid search means that you have the biggest bankroll; achieving the top spot naturally means that the content you offer is of great value.
Customers seem to be well aware of these dynamics and that’s one of the main reasons why the affiliate programs for bloggers are such a promising proposition. Quality blog posts can attract throngs of organic visitors.
15. Mobile optimization can be a massive conversion boost!
51% of surfers stated they are likely to purchase from a site that is specifically optimized for mobile devices. Providing smooth mobile navigation makes sense on many levels, as Google indexes mobile sites first for some time now.
Source : Hosting Tribunal
As the use of Amazon Alexa, Cortana, and Siri grows, the affiliate industry will need to optimize more quality content for voice searches. Affiliate marketing agencies are already working to make improvements in this area, and we expect that most will continue to do so.
There’ll be more focus on high-quality audio and video content. While written copy and visual ads have been the traditional marketing methods, audio and video content are just as relevant. The more ways that publishers can engage with their audience, the more successful affiliate marketing campaigns will be.
As with the increasing importance in voice searches, the need for mobile-friendly content grows as well. A Google Analytics report indicates that 40% of online transactions are done on mobile devices. Also, 70% of mobile searches lead to an action or purchase within an hour. That fact will force affiliate programs to optimize their content for better mobile use.
Some ads and internet marketing content will be designed specifically for use on mobile platforms. Some will simply need to be optimized to provide a better user experience on phones and tablets.
Affiliate marketing and online retailing are a natural partnership. And we expect to see even more online businesses working with publishers as we move into 2020 and beyond. And while some may not have been early adopters of the strategy, major brands and retailers everywhere are now getting in on the action.
Businesses Will Devote More of Their Marketing Dollars to Affiliate Marketing. On average, 15% of all marketing budgets are dedicated to affiliate marketing.
Affiliate publishers encouraged users to click on a product or website 5 billion times in 2017. And of those 5 billion clicks, 170 million of them resulted in actual sales. In fact, affiliate marketing and email marketing account for 16% of all e-commerce transactions in the U.S. and Canada.
Statistics show that affiliate revenue has been growing 10% each year since 2015. This trend is expected to continue until 2021 or later. With these growth rates, we expect that a greater share of advertising dollars will go to affiliate marketing programs.
Affiliate marketing spending is bound to grow by 10% in the next few years. Worth $12 billion, the AM sector is growing rapidly. AM accounts for 15% of all digital media revenue. Well-crafted affiliate marketing programs can boost revenue by a staggering 30%. That boost amounts to 15%-30% of all sales being generated by AM. Together with email marketing, AM is one of the largest sources of online income, accounting for over 16% of all ecommerce orders in the USA and Canada.
Source : Streamline Marketing
These stats prove that affiliate marketing will not be slowing down soon and will continue to grow over the next couple of years.