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Alongside this statistic, 40% of US retailers said their leading customer acquisition channel was affiliate programs. Between 2015 and 2020, the US is expected to spend more and more on affiliate marketing, increasing by most profitable affiliate programs a CAGR of 10.1%. Over half (54%) of these survey respondents listed affiliate marketing as one of their top 3 channels.
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Effectively, eCommerce affiliate marketing occurs when an online merchant promotes another company’s products, services, or website in their eCommerce store. Therefore, it shouldn’t be surprising that 27.8% of brands who engage in affiliate marketing, work with bloggers to assist them. Excluding social media, other important affiliate channels include Review Sites (18.7%), Coupon Sites (14.8%), Newsletters (7.2%), and Editorial Sites (6.5%). The fact that 13.8% of all Instagram Affiliate Influencers operated in the Lifestyle niche in 2021 (up from 11.59% in 2020), despite relatively low commission rates, may come as a surprise. However, Yield Farming Lifestyle is the largest sector overall on Instagram – it’s the niche where most people share their pictures and videos. Learn to turn affiliate marketing data into actionable insights with five essential questions.
28% of affiliate marketers use blogs to promote affiliate links
This is because brand ambassadors can steer new partners in the right direction, which improves their chances of success. This figure also explains why most merchants are happy with the revenue they https://www.xcritical.com/ earn from affiliate partnerships. As a global community of people, we aim to humanize marketing technology by providing solutions that deliver sustainable growth for all. Empowering brands of every size to partner with a diverse range of over 1 million publishers, targeting the customers you want to reach. For instance, 39% said they partnered with media houses, 36% said price comparisons, 35% said bloggers, 34% said technology partners, and 33% said discounts and coupons.
Other statistics that may interest you Statistics on
- Whether you’re a publisher or advertiser, we have a variety of resources to help you make the most of affiliate and partner marketing.
- 2023 saw an uptick in investment in affiliate marketing companies, with more than $1.5 billion raised in all-time funding across 232 rounds.
- In addition, most publishers agreed that about 20% of their annual revenue came from affiliate partnerships.
- By focusing on the right data, you can improve performance, refine your strategy, and set the foundation for long-term success.
- Identifying and nurturing partners who excel at acquiring high-value customers directly impacts program growth.
This is because more businesses use this marketing tactic to create more awareness for their brand. However, the most common way that affiliates are paid out is cost per action, also known as pay per lead. That means there is a flat rate for each set action (ex. email sign-up, event registration, etc.) that a customer takes to be considered a conversion. This is a cost per sale payment method where affiliates earn a fixed amount or a percentage of the cost of the item.
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The average affiliate marketer earns $8,038 per month, which is slightly under a 6-figure annual income. The growth rate of affiliate marketing is approximately 10% year-over-year. This trend is expected to continue with a forecasted market size of $27.78 billion by 2027 – a 63% increase over the current size of $17 billion. Affiliate marketers get a successful conversion rate of 0.5% to 1% per visitor. However, this is a rough estimate, and our data shows that conversion rate increases as affiliate marketers gain more experience. As we confirmed in our AI survey, marketers are incorporating AI tools into many aspects of their affiliate marketing business – including content creation.
PayScale has observed that entry-level pay for online affiliate marketing managers has dropped 21% recently, with early career salaries 8% lower. However, mid and late-career Online Affiliate Marketing Managers are now seeing pay raises of up to 19%. In this article, we’re listing the top affiliate marketing statistics for 2023 that every advertiser and affiliate marketer should know. You can find affiliate programs by searching directly on a merchant’s website, joining affiliate networks, or using affiliate program directories.
SaaS Based Products Pay 20-70% CommissionOne of our surveys discovered that SaaS COULD be one of probably the most profitable classes for affiliate entrepreneurs, paying as much as 70% fee. However, it very a lot will depend on the product, with affiliate commissions various from 20-70%. Industry data and general sentiment suggest that affiliate marketing will grow significantly in the years to come.
If you’re considering entering a competitive niche, know that your efforts will likely be rewarded for the increased competition. Payscale reports that the average salary for an Online Affiliate Marketing Manager is $56,795. This ranges from an entry level salary of $49,000 to an experienced Online Affiliate Marketing Manager with years of experience earning an average total compensation of $73,246. In our survey, the most popular eCommerce platforms were Shopify (36.7%), WooCommerce (14.6%) and BigCommerce (8.2%). When you look at sectors from a high level, Retail is the affiliate niche with the highest revenue percentage (44%).
Digital advertising includes everything from search engines to affiliate programs. This giant market is valuable because digital ads can reach the right people with the right message at the right time—something traditional marketing methods could not. So, in 2020 the digital advertising market reached $374B with a compound annual growth rate of 15.7% since 2015. For the next few years, experts expect the CAGR to stay consistent at 15.3%, so the global digital advertising market will be worth over $1,449B in 2030. Content creators combine content marketing strategies like blogging, email, and social media marketing to create unique experiences for their audiences.
With this influx of new partnerships, I believe the industry has become better at measuring and rewarding their affiliates accordingly. Attribution is shifting from a blunt, last-click basis to sophisticated, multi-touch solutions. A hybrid of cost-per-click, cost-per-lead, tenancies and other rewards can be combined to better reflect an individual partner’s value.
Affiliate networks provided a means for affiliates to work with hundreds of advertisers. The affiliate networks managed both sides of the relationship and took a fee from each. Advertisers found that the networks had little incentive to maximize advertiser revenue. Over time, advertisers found they were coming to rely on a few top-performing affiliates, and questioned the value of the networks. Although most people were in that last category, the most persistent ones would eventually reach the higher payment levels.
In fact, CHEQ’s data found that marketers lost $1.4 billion in revenue in 2020 alone due to affiliate marketing fraud. When Influencer Marketing Hub surveyed marketers, they asked respondents a yes-or-no question about whether or not they worried about affiliate marketing fraud. Influencer Marketing Hub’s surveys on influencer marketing have revealed that of Instagram influencers who earn affiliate income, 13.8% are in the lifestyle niche. The majority of brands, 34% to be exact, say their affiliate marketing spend falls between 21 and 40% of their marketing budgets. A report published by Proficient Market Insights predicts the global affiliate marketing industry to grow to a market size of $27.78B by 2027 at a compound annual growth rate of 9.89%. Affiliate marketing can make you rich, but it won’t happen overnight, and it’s not a fast process.
The SaaS software providers have the incentive to continually develop their software to drive revenue for advertisers. The more successful the affiliate programs using their technology, the higher the likelihood that other firms will shift their affiliate marketing to that software. We found in a recent survey that our respondent businesses allocated 9% of their marketing budget on average to affiliate marketing. This equates with email marketing, and is similar to what they intended to spend on offline marketing and events.
In today’s digitally-driven world, influencer affiliate marketing stands tall as a dynamic bridge between brand messaging and an eager audience. As the age of traditional advertising wanes, influencers have emerged as modern-day powerhouses, weaving stories and endorsements that resonate personally. The steady increase in funding rounds, with over $1.5 billion secured in 2023, highlights the growing confidence in affiliate marketing firms.