The Diverse Growth of Affiliate Marketing Around the World
It wasn’t so long ago that affiliate marketing was a fresh and new business model. While the concept of affiliate marketing has been around – in one form or another – since the earliest days of the internet, it wasn’t until the advent of concepts such as blogging platforms, social media channels, and the increased democratization of publishing that the business model really began to take off.
With the right approach – and with accessible technology – people from all walks of life can make a success of affiliate marketing. This is a significant part of its appeal, and is also fuelling growth in the industry.
And this growth is happening on a major scale. The global market is expected to hit $12 billion in 2022, more than three times the total value seven years ago. What’s more, this growth is also highly diverse – growth is affecting the market in lots of different ways, resulting in plentiful opportunities for brands as well as for affiliate marketers themselves.
More Brands Using Affiliates
More and more brands are waking up to the potential that affiliate marketing represents, and this is driving a key aspect of growth. It is estimated that around 81% of brands around the world now use affiliate marketing in one form or another.
Increasing Numbers of Affiliate Networks
Affiliate marketers are not limited to just a single network. Instead, the most successful marketers are part of multiple affiliate marketing platforms and networks, resulting in a highly competitive industry. Marketers who can master the skills required to achieve affiliate success can generate significant revenue, both for themselves and for the brands they work with. Around 94% of publishers are utilizing multiple affiliate networks.
Growth in the Affiliate Software Market
Affiliate marketing tools are critical to the success of marketers and the brands they work with. The need for these tools is fuelling another area of growth in the affiliate industry – affiliate software development. The affiliate software market is expected to exceed $29.6 billion by 2028, up from $11.6 billion in 2021, experiencing a compound annual growth rate (CAGR) of 14.06%.
Multichannel Affiliate Growth
Another aspect of growth for the affiliate market is in the channels available to publishers. While blogging platforms remain popular choices for affiliate marketers, social media platforms are also growing in prominence. Previously, many social media platforms prevented their users from engaging in affiliate activities, but this seems to be changing. In 2021, leading social media channel Instagram announced that affiliate marketing capabilities had entered the beta testing phase, adding another potential revenue stream that influencers and affiliates may choose to leverage.
An Exciting Time for the Industry
Affiliate marketing growth is looking increasingly strong as we move into the third quarter of 2022. While the industry appears crowded, there are still plenty of opportunities available to marketers with the right attitude and the appropriate work ethic. We can expect increasingly innovative campaigns in the near future as affiliates seek to secure optimal market share.