By 2020, affiliate marketing is estimated to bring in a revenue of $6.8 billion globally. Now growing faster than traditional advertising, its significance is no longer underestimated. Instead of traditional advertising, which can include paid search or display ads, publishers are increasingly using organic content (such as content marketing) in their product links.
Here are a few more statistics that demonstrate the growing influence of affiliate marketing:
- Comprises 16% of all e-commerce sales
- 15% of the digital media industry’s revenue originates from affiliate marketing
- 84% of publishers and 81% of brands have incorporated affiliate marketing
- Organic search is driving 21% of online orders; paid search is driving 20% of online orders
Affiliate Marketing Trends to Keep an Eye Out for in 2019
As you look to finalize the details of your marketing plan for 2019, make sure to stay on the lookout for these following trends:
Affiliate marketing will only grow, as will the number of affiliate agencies.
Marketers who specialize in affiliate marketing will rely on a host of tools. This includes Facebook ads and remarketing campaigns that are hyper-targeted to specific keywords. It will be increasingly important for publishers and businesses to select mobile affiliates and targeted websites, instead of more general ones as affiliate marketing rises in strength.
Affiliate Marketing Spending in the United States (2015 – 2020)
Mobile payments will also increase, especially in China.
Any business concerned about driving sales in 2019 must pay attention to the rise in mobile payments. It must ensure all marketing campaigns are fully mobile compatible. Therefore this is especially important in markets such as China which are expected to hit a mobile payments volume of $6.3 trillion by 2020.
Influencer marketing programs will become a marketing force.
In addition, influencer marketing will become more popular. Its promotion of brands across consumer-based industries is considered to be more genuine than those of traditional advertisements or macro influencer celebrities. Micro-influencer marketing, as opposed to the use of macro influencer celebrities, also involve lower overhead and little management that can also be more cost-effective and simpler for companies to plan and carry out.
Data-driven affiliate marketing.
Online marketing allows the collection of lots of different data on customers and their online journey. Businesses are taking advantage of this data to align it with their Key Performance Indicators (KPI). This way they can reach their target marketing goals. Accordingly, data and numbers need to be understood in their context, however, and only the most relevant data should be presented to managers.
AI and machine learning
Today AI and machine learning have now infiltrated almost every business, and that includes affiliate marketing. Chatbots are becoming increasingly popular for assisting in customer service and collecting data on customers. The sheer amount of data generated can be used to create machine learning algorithms that improve your campaigns.
Combining Future Trends for a Winning Combination
Advanced recommendation engines combine all of these trends to offer a solution that engages your community and leverages the power of small social circles to drive sales.
VOCO’s AI bot proactively prompt customers to rate and share purchases they love with friends and family, at the exact moment they are most excited about them. VOCO uses the data collected to track referrals, purchases and distribute rewards and cashbacks. Therefore both tracking and payment are automatic.
All of this is simple and easy to use, with referral links sent directly to your phone and automatically copied to whatever social media channels customers select to share their purchases in. It’s an all-in-one solution to meet the needs of your customers in the next generation of affiliate marketing.