Affiliate marketing, even after being around for many years, is starting to take its deserved place in the news and in companies’ marketing budgets.
Why are we seeing so much explosion in the affiliate marketing space? Is it because affiliate marketing has finally become mainstream, or is it because affiliate marketing is a natural fit for the breadth of online services and apps that have been launched? Looks like affiliate marketing has finally found its niche in the New Services Economy.
In the past, when evangelizing the affiliate network or simply doing corporate presentations, we would present the affiliate channel overall as a 2-3 billion dollar industry in terms of marketing budget spending, with market forecasts expecting it to hit 4 billion USD by 2016.
However, in the past several weeks, there’s been buzz about “affiliate marketing” being ”billion dollars’ worth” thanks to (just) a couple of the industry’s major players. One of those players is a large cashback website generating revenue as an affiliate, and the other is the largest affiliate network in the industry today – that together sold for a $3.3 billion dollar cumulative payout.
Will these events affect only those directly involved in the two acquisitions or will it impact everyone in the affiliate marketing ecosystem?
The savvy performance-based publishers could take some of the marketing budget share that traditionally went to CPM or fixed tenancy media and services. This could translate into more consistent payouts for the best affiliates and improved marketing resources such as:
2013 & 2014 Milestones that are Driving the Future of Affiliate Marketing
Disruption is not only driving innovation in the New Services Economy; examples of this innovation can be seen throughout the digital commerce space and, especially so, in the affiliate marketing industry. We can expect to see more milestones, like the ones above, in 2014 and 2015 that reflect the continued growth and market validation of the affiliate marketing industry.