An increasing number of companies are launching affiliate programs to help them gain a foothold over the competition. Studies show that 80% of global brands now run their own affiliate marketing program. And it’s helping them improve many business areas including brand positioning, audience targeting, and social proof. So, if you need some help to convince senior leadership of the benefits of creating the best affiliate marketing program, read on.
With plenty of ammunition in the form of well-researched and high-quality data, you’ll find it easier to make your case for investment. So in this post, we’ll offer 9 stats to help you persuade senior leadership of the benefits of affiliate marketing. With this set of well-researched data sources, you should have all the information you need to influence the C-Suite and help them take an important step towards running their best affiliate program. And sooner rather than later.
Creating the Best Affiliate Program Can Transform Your Organization
The affiliate marketing industry is exploding. Savvy brands are launching their best affiliate marketing programs and finding ways to capitalize on this sharp growth. In their 2022 report, Affiliate: The Resilient Revenue Driver, Rakuten Advertising suggests the best affiliate program offers a low-risk, high-return form of marketing for any type of organization. But they also suggest how companies can stay resilient in turbulent times.
Taking a holistic approach that targets consumers’ priorities while accounting for the economic slowdown are the main strategic drivers. Doing so should help any business feel confident to use affiliate marketing to fast-track their lead gen and conversion rates.
9 Statistics to Persuade Your Team to Create the Best Affiliate Program
To sway your leadership team into starting their own affiliate marketing program, here are 9 of the best affiliate marketing stats.
1. Growth in the Affiliate Marketing Platform Market Size is Expected to Increase by a CAGR of 9.89%
Affiliate marketing is growing year on year. And it’s set to expand by a CAGR of 9.89% by 2027. In other words, affiliate marketing is growing into a colossal industry with experts predicting a value of USD 27,780.98 million within 5 years.
Thanks to the surge in eCommerce activity during the pandemic, affiliate marketing has broadened its growth potential. Major eCommerce platforms like WooCommerce, Shopify, Amazon, and eBay now offer some of the most lucrative tools and opportunities for affiliate marketing.
2. 51% of Affiliate Marketing Spend in 2022 Came from Coupons and Other Promotions
Coupons and other techniques such as loyalty and reward websites make up over half of all investments in affiliate marketing. Online techniques like SEM (Search Engine Marketing) and influencer marketing are important aspects of affiliate marketing. But by far the biggest investment is in channels including coupon and cashback sites.
3. 90% of Merchants and Advertisers say Affiliate Marketing is Essential to Their Marketing Strategy
Reviewing which affiliate program is best for a business should include the ability to find on-brand affiliates. Some of these may include partnerships with vendors in the same niche. Working with affiliates will help brands to target their audiences faster. And using an affiliate network to discover new audiences is why 90% of advertisers may be partnering with them.
4. Businesses Who Work with Affiliate Networks can Increase Revenues by up to 20%
Studies show that when a business chooses to work with an affiliate network, it can increase revenues by as much as 20%. And this is a measurable difference worth presenting to your stakeholders as clear evidence whilst you find the best affiliate marketing solution for them.
5. Affiliate Marketing SEO Can Lead to 120% Growth in 6 months
“Choose Wheels” are an affiliate marketing website that uses content marketing to build partnerships with companies selling cycling devices. With their business model losing 80% of organic search traffic in two months, they started working with an agency that turned this around. Within 6 months Intergrowth supported Choose Wheels to improve SEO and grow by 120%.
6. Amazon Associates Has the Biggest Market Share at 45.77%
Amazon Associates, the Amazon Affiliate Program is the biggest in the world. With a market share of almost half of all affiliate marketing activity. Affiliates earn commissions across a broad scale when they become an Amazon affiliate.
7. Affiliate Advertising Can Covert 90% of Webinar Clicks
In a recent episode of the affiliate marketing podcast hosted by Matt McWilliam–aka ‘The Affiliate Guy’–Matt confirmed how over 1k affiliate clicks on a webinar link resulted in a conversion rate of over 92%. And this is strong evidence of the power behind affiliate marketing that you can share with your board.
8. Gaming Affiliate Programs can Pay up to 60% commission
Gaming-based affiliates are individuals or organizations that earn revenue by promoting gaming products and services through their gaming-related channels, such as YouTube and Twitch. By creating engaging content like game reviews, tutorials, and live gameplay sessions, they attract viewers and build a loyal following.
Commission rates for gaming affiliates can vary, with some earning up to 60% commission on the games, products or services they promote. This high commission rate is due to gaming companies recognizing the value of having a dedicated and engaged audience interested in their products. Gaming affiliates leverage their expertise and audience reach to generate significant revenue while sharing their passion for gaming with their fans.
9. 93% of marketers have used influencer marketing as part of their affiliate marketing strategy
With the popularity of social media use comes a sharp rise in Social Media Marketing (SMM) activity and specifically influencer marketing. With Gen Z and Millennials focused on finding brands they can trust, selecting an appropriate influencer can bring increased sales through the power of association.
Strong Data Can Help Persuade Your Team to Invest
Every business that wants to generate better or increased leads should consider investing in an affiliate marketing program. And whether that’s through eCommerce platforms, affiliate networks, or influencer marketing, it’s a space your leadership team may be considering moving into. So with the data we’ve compiled, you should feel confident to influence your senior leadership team and give them the encouragement they need.
If you do have further questions, feel free to contact us at Coupon Affiliates. We can offer a free trial to help you convince your team that launching their best affiliate program is the right approach to gaining a sharp increase in lead generation and conversions.Share this post: