Affiliate Marketing On It’s Way To $7 Billion Per Year
A question I’m asked by newcomers to affiliate marketing on regular basis is…
“Affiliate marketing sounds like a fantastic business model, but is it sustainable?”
It’s an excellent question and one you should know the answer to before you jump in. Affiliate marketing takes some time and investment to learn so it’s vital to know whether or not this business will continue to pay you dividends well into the future.
Affiliate marketing is hot right now as we cruise through the first quarter of 2016. But will it continue to grow or just become another flash-in-the-pan trend until the next fancy-pants marketing model emerges?
Luckily we have wonderful companies like Rakuten Marketing and Forrester Consulting who do research on these matters for us. The newest research on the affiliate marketing industry conducted by Forrester and commissioned by Rakuten found a booming marketplace forecasted to grow to an impressive $6.8 billion over the next five years.
Here’s A Graphic From The Report To Show You This Data:
From The Report
“Affiliate marketing, once regarded more as a tool to drive consumers to the purchase event, is now viewed as a powerful channel for consumer discovery that leads to brand engagement and incremental sales at compelling ROIs. Advertisers are increasingly relying on the affiliate channel to broaden their brand exposure with relevant context. More publishers are taking the opportunity to complement their revenue with advertiser support that delights their readers. Pairing advertisers with publishers is best accomplished with the help of networks that bring economies of scale to developing management and measurement tools that help all participants gauge the value of the increasingly popular mainstream strategy.”
What It All Means
What it means is that not only is affiliate marketing here to stay, but is still a long ways from reaching its potential. This is great news for us. Wouldn’t you like to get your small slice of the $7 billion dollar pie? Affiliate marketing is still a level playing field meaning anyone can succeed at it.
Companies who haven’t embraced affiliate marketing are coming around to the fact that they better get on board or lose critical market share to their competitors. This is especially noticeable in the luxury market. Affiliate marketing has become a necessary part of an overall brand strategy that provides companies with more exposure, leads, and sales.
The future is bright.
You can download the entire report for free here: http://blog.marketing.rakuten.com
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