Marketing campaigns using search ads, social media, and content marketing can be expensive and require trial and error to figure out which ones are worth it.
But what if you only paid when your ads resulted in actual sales? That’s the beauty of affiliate marketing, you can partner with a social media influencer, blogger, or podcast host to promote your products. You create a unique link to your ecommerce store, affiliate marketers share the link with their audience, and you pay a commission only when a customer clicks or purchases.
“One of the biggest benefits of affiliate marketing is that it’s performance-based, so you’re not wasting money on ads that might not work,” says Cristy Garcia, impact.comthe leading partner management platform. “It’s a cost-effective, low-risk way to attract new customers. “
Both brands and affiliate marketers are benefiting from this. In some ways, affiliate marketing business drives 16% of e-commerce Sold in the United States and Canada. Here are the latest trends in affiliate marketing that Cristy and other industry leaders are tracking.
Become a Shopify member
Join the program to grow your brand, gain access to exclusive opportunities, and earn a competitive commission for every new business you refer to Shopify.
Apply now
Top Affiliate Marketing Trends
The global affiliate marketing industry is growing rapidly and is expected to reach $15.7 billion By the end of 2024. With this growth comes change. Tracking the following key affiliate marketing trends can help your business stay ahead of the curve.
Customers are well-informed, but they are more skeptical than ever
Multi-generational buyers, including Millennials and Gen Z, use the internet and social media to inform their shopping and purchasing decisions.
“Buyers today are the most informed in history,” Christie said. “They are tech-savvy, regularly use various social media platforms, browse multiple websites, and are accustomed to consuming large amounts of content on a daily basis.”
Is it included in everything? There are so many ads that many people think advertising is nothing more than digital noise. Christie said traditional advertising has become ineffective, more expensive and even annoying. Instead, many potential customers will seek social proof and recommendations from trusted sources like content creators, which is why affiliate marketing strategies often work so well.
But e-commerce companies should choose their affiliate partners carefully. The ideal affiliate marketer should be trusted by your target audience and feel like a true fit with your brand values and image.
For example, an influencer sometimes showcases fast-fashion clothing that is discarded after a few uses, which may conflict with the brand’s ethos of focusing on sustainability. Or imagine a financial podcast host reading marketing materials for scuba gear. This isn’t entirely appropriate for their broad audience, and chances are the message won’t land. Authenticity is critical—a key strategy from day one.
🌟Affiliate programs are growing rapidly. Learn how to set up an affiliate program for your store step by step.
Affiliate marketing models are rapidly diversifying
Typical affiliate partners are content creators, influencers, and bloggers. But maybe you also want to partner with a community leader, develop a mutually beneficial joint marketing strategy with another company, or just try something that doesn’t allow embedded links.
The good news is that your affiliate marketing budget isn’t just for digital marketing, you can also work with affiliate partners who don’t use digital platforms.
“The affiliate marketing landscape used to be limited to specific platforms like email, social media and blogging,” Christie said. “But with advances in technology and a little creativity, anyone can become an affiliate, whether they own the media property or not.”
As an example, Christie cited a company that sells dog food and toys that wanted to expand its customer base by partnering with local animal shelters. People who adopt a dog from a shelter receive a free box of treats from the company, which includes a QR code they can scan to sign up for the subscription box. The company gained new customers, and the shelter earned a small commission from each remodel—a success that spurred the brand to partner with animal shelters elsewhere.
You might also consider inter-brand partnerships with companies that offer complementary products or services. For example, a professional cookware brand might partner with a company that provides customers with chef-crafted meals for a joint campaign. Each brand can include cards with affiliate URLs in their deliveries to purchase items from partners.
“This type of co-marketing has long been effective because it leverages the power of two companies to reach a wider audience and drive engagement,” Christie said.
Result: Get creative when brainstorming potential affiliate relationships. Don’t limit yourself to the influencer group, but think outside the digital box.
AI and other tools are driving dynamic insights
Like traditional marketing efforts, you can track, adjust, and optimize your affiliate marketing campaigns over time. New artificial intelligence (AI) tools make this easier than ever. Consider partnering with a management platform that offers these advanced capabilities to inform your strategic approach.
For example, Christie said AI could automate much of the deep work of vetting affiliate partners. AI tools can search the entire online world to identify partners that are right for your brand, including checking a potential associate’s previous brand connections and activity to ensure they are aligned.
Christie’s company Impact works with small appliance manufacturers Shark Ninjaa company that leverages some of these affiliate marketing software features to expand its affiliate program. As a result, more than 900 new partners signed up with SharkNinja, and affiliate revenue increased 30% month-on-month, Cristy said.
Affiliate marketing and influencer marketing are converging
The terms are used somewhat interchangeably, but affiliate marketing and influencer marketing have historically been two separate channels.
“Traditionally, influencer marketing has been viewed as a top-of-funnel tactic focused on raising awareness and launching new products,” says Christie. “Affiliates are known for their expertise in driving conversions and are often considered a bottom-of-the-funnel tactic because they know how to promote products and reach an audience ready to buy.”
Over time, the two channels have converged, she said.
“Affiliates can also increase awareness, and influencers can drive sales,” says Christie. “The real power lies in combining these two strategies to engage consumers at every point in the funnel.”
vintage clothing company Respect That’s what it does. It combines independent influencer and affiliate marketing programs on the Impact platform. This integration, coupled with Impact’s advanced tracking and reporting tools, helps Homage enter new affiliate partnerships and customer markets. The result is a 485% return on investment.
Affiliate Marketing Trends FAQ
Is affiliate marketing a trend?
What is the future of affiliate marketing?
The affiliate marketing industry is growing rapidly as more consumers seek social proof and credibility. The affiliate space is seeing a convergence of influencer and affiliate networks. AI tools are automating many parts of the process and providing valuable insights, including identifying new potential partners and reviewing their past content to ensure they are a good fit for your brand.
Why is affiliate marketing important for e-commerce?
Affiliate marketing strategies are cost-effective and less risky than traditional marketing. Additionally, affiliates and influencers can expose your brand to new audiences and markets while also providing you with the trust, credibility, and goodwill they build with their followers.