Top 10 trends within Affiliate Marketing
- Rebecca Mathura
Marketing, particularly affiliate marketing, is in a constantly evolving industry. In the twenty-first century, we are faced with the challenges of new trends, driven by technological advancements and changes in consumer behavior. Companies and marketers must stay one step ahead, sometimes even several steps, in order to compete and stand out. That’s why it’s essential to keep an eye on these top ten trends and use them as a guide for the upcoming key factors that will shape the direction of the industry.
The impact of inflation on consumers
Global inflation is impacting consumers worldwide. Incomes are under pressure, resulting in less money to spend. This leads to a greater emphasis on price comparison and savings. During the 2008 recession, we already saw online shoppers actively seeking savings. Affiliate partners offering incentives such as cashback, coupons, and loyalty programs benefited greatly from this trend.
Recommerce and Rental Platforms
In economically uncertain times, sustainable shopping is often deprioritized. Consumers logically opt for cheaper, less sustainable purchases. Recommerce marketplaces, such as Marktplaats and Vinted, have stimulated the concept of refurbishing and selling used goods. This segment currently represents 10% of all online sales in Europe, with expected growth to 14% by 2025.
Wat Marktplaats Pro advertising, adverteren op Marktplaats, uniek maakt is dat op dit platform CPC’s slechts een paar cent bedragen. Je betaalt dus niet voor een vertoning in de listing, maar voor een daadwerkelijke klik op jouw advertentie(s). Hierdoor is adverteren op dit mediakanaal (nog) relatief goedkoop ten opzichte van andere paid advertising inzetten.
Fewer Mergers and Acquisitions
Mergers and acquisitions in the affiliate world significantly declined in 2022. This trend is expected to continue as investors become more cautious due to the anticipated recession. Instead of large acquisitions, we will see more strategic partnerships, which require less capital and resources.
Collaboration Between FMTC and Google
The collaboration between Google and FMTC in 2022 has revolutionized the world of discount codes. Google has enriched its advertising network with discount codes from FMTC, simplifying the search for generic discount codes. This move could clean up the discount code market and shift the focus towards more valuable discounts.
Influencer Marketing After Apple's iOS Privacy Changes
Apple’s iOS privacy changes have increased advertising costs and complicated targeting. Companies have shifted from paid social media ads to collaborations with influencers on the same platforms. Influencer marketing offers a more privacy-focused approach and is likely to grow in 2023.
If you would like to leverage influencer marketing to enhance brand awareness and sales and are seeking guidance and/or support in this area, please contact us so we can discuss the possibilities with you.
Performance-Based Advertising on Google and Meta
Google’s Performance Max and Meta’s Advantage+ are based on automation through machine learning models. While these solutions offer high ROIs, they lack transparency in performance, which can lead to controversies regarding brand safety. Furthermore, this “black hole” makes it difficult to optimize campaign performance based on unshown insights and performance metrics.
Popularity of Brand Partnerships
Retail media, such as Amazon’s advertising platform, have led to an increase in brand partnerships. Smaller online retailers can generate new revenue through affiliate partnerships with relevant brands, benefiting both parties.
While diversification in the industry has increased since then, incentive partners remain valuable for shoppers. However, the abundance of discount codes and promotions across various partner models makes it clear that this is no longer their exclusive domain. The trust that partners have with their audience and the confidence in their recommendations will be crucial in 2023.
Focus on Customer Experience and Tech Partners
Leaders in e-commerce prioritize customer experience and collaborate with tech partners to enhance their e-commerce offerings. Tech partners in the affiliate channel provide innovations that are crucial for a positive customer experience.
Adventurous Advertisers Perform Better in Uncertain Times
In times of uncertainty, advertisers who are willing to experiment perform better than conservative advertisers. By deviating from the norm and employing new expressions, successful campaigns can be discovered. Investing in diverse partnerships and optimizing customer interactions can help overcome disruptions.
ChatGPT and AI
AI, such as ChatGPT, will play a significant role in the future of affiliate marketing. The use of AI tools is expected to increase, especially as the technology becomes more accessible to innovative startups.
These future trends will continue to shape and influence the affiliate industry. It is a time of change and opportunity for marketers and companies in this field. Stay alert and adapt to these evolving trends to maximize your success.
Martijn Zoetebier
Managing Director Conversive & Group Director Business Development
+31(0)36 200 21 30
