Today, affiliate marketing is pulling waves in the internet marketing space and many business owners and marketers are beginning got see the great potential it carries.
Research has it that 80% of brands and 84% of publishers use affiliate marketing. Also, approximately 15% of the digital media industry’s revenue comes from affiliate marketing. More so, affiliate marketing generates 16% of all e-commerce sales in the US and Canada. In fact, According to Statista, affiliate marketing spending in the U.S alone is expected to reach $8.2 billion by 2022.
On the part of companies, affiliate marketing allows them to effectively market a product with a low budget, low effort and time, and at a well-contained risk level while assuring a high return on investment, increase in brand awareness, and business growth.
An affiliate program does not require huge investment, and it also does not compulsorily require that you have an advertising team for ad visuals or purchase ad space. As a company, you’ll only have to depend on your affiliates to come up with their marketing content.
Affiliate marketing also encourages low ongoing costs. It makes cost easy to manage and does not interrupt your cash flow, unlike other marketing models such as PPC advertising which requires you to pay for every click leading to your website. Affiliate marketing ensures that you only pay affiliates when sales are made.
Affiliate marketing has been proven over the years to be a marketing model that has a higher ROI than the majority of marketing methods. This is because your target audience will be informed about your product or service from affiliates who are influential in their spheres. This makes your product or service presented before a highly targeted audience that is receptive to what you have to offer.
As the market continues to grow, the benefits of affiliate marketing are more apparent to businesses of all sizes, and we can expect to see more organisations use the method more frequently in the future.