Affiliate marketing is evolving at an accelerated pace. Appearing in the early 1990s, it took a huge leap. The market value of affiliate marketing is estimated to be $17 billion this year. Judging by the forecasts of experts, this is far from the limit. According to their calculations, profitability will grow by an average of 10% every year.
Affiliate marketing is common in many areas of our lives and successfully solves business problems. One of the best affiliate marketing programs is in the field of gambling and betting. In 2022, the value of this market was $72 billion. In the coming year, profits are expected to increase by 12%.
Marketing technologies do not stand still. With their development, innovative methods of attracting customers appear. In this article, we will talk about the main trends and opportunities of affiliate marketing in the near future.
Influencer Marketing
Business has long attracted famous personalities to advertise goods and services. These are people who have managed to create a strong brand and inspire trust among consumers. They have a huge number of followers who are willing to pray for them.
Influencer marketing is showing phenomenal growth. According to the calculations of Influencer Marketing Hub, this industry showed an almost tenfold increase from 2016 to 2022. Such a powerful jump is associated with the popularity of short videos on social networks. Experts say that influencer marketing will come to the fore in affiliate marketing. Companies are expected to increase spending on this by a lot in the coming year.
Brands collaborate with influencers of different levels. It is believed that there are 4 types of the most popular influencers. These include:
1) Mega-influencers. These are the most streamlined musicians, actors or other celebrities who have more than a million followers.
2) Macro-influencers. They have a smaller audience: from 100,000 to 1,000,000 people. Macro-influencers support their resources with constant content updates.
3) Micro-influencers. This category of influencers has between 5,000 and 100,000 followers.
4) Nano-influencers. These are promising accounts with 1,000 to 5,000 followers. They are in the process of development and tend to grow rapidly.
An interesting fact is that the majority in affiliate marketing is not occupied by mega-influencers and macro-influencers, who have the most subscribers. 90% of affiliate marketing comes from micro-influencers. Experts attribute this phenomenon to the high level of engagement and greater authenticity of influencers.
Despite the small number of subscribers, businesses consider nano-influencers to be more promising. They are not yet spoiled by popularity, so they are easy to contact. In addition, they are more cost-effective for cooperation.
Use of Artificial Intelligence
Artificial intelligence is being actively introduced into many areas of our lives. It greatly helps businesses to perform monotonous actions, freeing up employees to solve problems that require non-standard approaches. Partners are successfully solving the problems of increasing competitiveness through artificial intelligence. The ability to analyze vast amounts of data is one of the main advantages of its matchmaking tools.
Artificial intelligence significantly increases conversion and contributes to an increase in revenue. The Natural Language Processing (NLP) algorithm plays a significant role in this case. It helps marketers create the right content in a short time to develop partnerships. These materials resonate with the target audience and allow you to increase conversions and traffic.
The Role of Video Content
Video content has long been an important tool in affiliate marketing. Its role in the coming year will only increase. It's hard to imagine marketing without platforms like YouTube, Tik-Tok, Instagram. Visual content shows its advantages in practice:
- demonstrates a high speed of product demonstration;
- increases the trust of the target audience;
- Increases conversions.
Using artificial intelligence tools in this niche, marketers create videos with expert tips and tricks.
New Technologies
Affiliate marketing opportunities will become more significant after the introduction of new technologies. This applies to two areas:
1) Cryptocurrencies
From year to year, digital money is gaining popularity. The number of companies accepting cryptocurrency as a means of payment is increasing. These trends open up new opportunities for cryptocurrency advertisers and partners to increase revenue.
2) Augmented and virtual reality
These technologies will empower affiliate marketing. They will make it possible to promote products not only in the real, but also in the virtual world. Nike and L'Oreal have already taken advantage of this. They have already managed to launch their goods in the Metaverse. This digital space for virtual products will expand over time. And the former will benefit, since the market is not yet saturated.
Conclusion
Experts note that affiliate marketing has a great future. The development of technologies such as artificial intelligence, voice search, and cryptocurrencies will give businesses tremendous opportunities for profitability growth.
The cooperation of companies with authoritative personalities has been bringing great passive income to both for many years. The development trend of influencer marketing will continue further, increasing their revenues every year. Its effectiveness is recognized by most brands and marketers.
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