💹Market Overview
Last updated
Last updated
The advertising market is continuing to expand much more quickly than forecasters earlier predicted. Global advertising spending will grow 5.9% to $874.5 billion in 2023.
Ad spending in the Advertising market is projected to reach US$1,027.00bn in 2023.
The largest market is TV & Video Advertising with a market volume of US$326.20bn in 2023.
In global comparison, most ad spending will be generated in the United States (US$394bn in 2023).
In the Advertising market, 78% of total ad spending will be generated through digital in 2028.
The average ad spending per capita in the TV & Video Advertising market is projected to amount to US$42.40 in 2023.
In the Advertising market, 81% of the Digital Advertising revenue will be generated through programmatic advertising in 2028.
(Source by: statista.com)
Consumer businesses such as Walmart and Uber are increasingly using their data and ad space on their websites and apps to help advertisers reach consumers through so-called retail media networks. That segment, which has emerged as an engine of growth in the ad industry, will grow 9.9% to $125.7 billion in 2023, and is expected to exceed TV revenue in 2028, GroupM forecast.
As per Google Trends, the worldwide search interest for "affiliate marketing" has not only been growing but accelerating since 2020. It had reached a peak in August 2022 but didn't stop there. Instead, interest kept climbing, hitting all-time high scores in 2023. The growth pace mirrors the rising importance of digital income streams in recent years. Key moments include a spike to a score of 57 in May 2021, an impressive 73 during the last week of December 2022, and an unprecedented score of 100 in the first week of 2023. The trend is clear - affiliate marketing has cemented its place as a prominent income-generating strategy in our digital economy.
Affiliate marketing continues its growth trajectory, solidifying its reputation as a lucrative global industry. The Performance Marketing Association's report highlighted a remarkable 47% industry growth from 2018 to the end of 2021, demonstrating how integral it has become for many retailers.
Future projections indicate a continuation of this upward trend. By the end ot 2023, global affiliate marketing spending is set to escalate to $14.3 billion, and this figure is anticipated to climb further to $15.7 billion by 2024. This rapid growth underscores the increasing reliance on affiliate marketing by businesses worldwide as they connect with consumers in the expanding eCommerce landscape.
Affiliate marketing has a market value of over $15.7 billion as of 2024.
It is estimated that affiliate marketing spending in 2023 will be around $13 billion.
107,179 companies worldwide make up the Affiliate Networks industry as of 2023.
The affiliate marketing industry will be worth $27.78 billion by 2027, which is around a 91% increase from 2020.
16% of online orders in the United States come through affiliate marketing.
Affiliate marketing is used by 83% of marketers to raise brand recognition.
Some of the top businesses in the world get 5% to 30% of their internet revenue via affiliate marketing.
57.55% of affiliate marketers earn less than $10,000.
80% of brands have an affiliate program.
Bloggers and Review sites are the leading channels for affiliate marketing.
There are over 10,000 affiliate marketing-related services and companies globally.
(Source by: demandsage.com)
Affiliate Marketing Companies Raise Over $1.5 Billion in Funding Across 232 Rounds, with $303.4 Million Raised in 2021
According to Crunchbase, affiliate marketing companies have raised a total of $1.5 billion in funding across 232 funding rounds overall. This includes the $303.4 million raised specifically in 2021 by software platforms focused on the affiliate marketing industry. Note that according to Crunchbase affiliate marketing companies have raised a total of $1.3 billion from 198 funding rounds overall, year prior to 2022.
These figures suggest that the affiliate marketing industry is attracting significant investment and attention, with a range of companies and entrepreneurs seeking to capitalize on its potential. Given the ongoing growth and evolution of the industry, it is likely that we will continue to see substantial investment and fundraising activity in the years to come.
Affiliates marketing is one of the few industries where the impact of the coronavirus has presented affiliate marketers with several opportunities. While the pandemic has drastically impacted businesses, here is a look at how the affiliate marketing industry has room for newer growth:
The rise in E-commerce demand
As more and more consumers seek contactless shopping experiences out of fear of the virus, online sales have boosted within the e-commerce industry. Traditional brick-and-mortar stores rethink their strategies and question if going digital is the answer. This significant growth can go hand-in-hand with the rise in profits generated by affiliates. Online shopping paves the way for consumers searching for online discounts. With often high shipping fees, customers are more likely to use discounts when they shop online. In addition, the financial situation resulting from the pandemic increases the need for more economical shopping. Online shoppers search for coupon codes before checking out to save on their purchases. It is where affiliate marketers can benefit. Affiliates or “Publishers” have an expanded customer base to which they can promote their coupon codes and generate orders. When online shoppers use an affiliate’s coupon, the affiliate makes a commission when making the purchase. This increase in the online consumer base makes the affiliate marketing industry profitable for publishers.
Change in the landscape of Affiliate Marketers
Another effect of coronavirus has been increasing financial uncertainty and higher unemployment. These uncertain times have worried people about their financial futures, making them seek alternative money-making opportunities. Affiliate marketing is a trending source to make passive income easily. Most affiliate marketing programs are free to join. A simple social media account where online users can promote offers is an easy way to generate income. One of the most attractive things about affiliate marketing is that online users might not even need specific skills to get started. Affiliate marketing is open to anyone. A good following and even word-of-mouth can play a role in helping affiliates generate income. They have to share their coupon codes/affiliate links with others and drive orders using these codes/links. Secondly, affiliates can earn anywhere at any time. For those stuck at home thinking of new ways to make money, affiliate marketing is a job that does not require one to have a particular workspace. Affiliatesearnevenwhentheysleepaslongassomeoneplaces an order using their code or tracking link.
The ability to focus on a new niche
With increasing uncertainty comes an increasing need for change. E-commerce has witnessed a boost since the COVID-19 outbreak. However, specific industries benefited from this growth more than others. In the UAE, online grocery shopping boomed between March-May 2020. Consumers’ shopping patterns have also shifted towards being more health-oriented. For example, immunity-boosting vitamins were found to have the biggest conversion rates the week following COVID-19. For affiliates, the safest offers to run now are Nutra offers, health and self-care offers, as well as streaming offers. Now, affiliates in the field have the opportunity to vary their offers portfolio and focus on a whole new niche. Savvy affiliates have tried to pivot quickly to promote more with the rising demand. It consists of affiliates focusing on different campaigns that might do better than others during this pandemic. To seize the opportunity, affiliates need to focus on high-quality products or offers in demand now.
Affiliate Marketing in demand amongst Advertisers / Brands
On the other side of the spectrum, as more businesses are going digital, advertisers/brands are also looking for affiliates to partner with. There is an increasing need to save costs and reduce risk. Many advertisers/brands now explore successful affiliate marketing techniques to promote their products and services. What helps minimize the risk with affiliate marketing is that brands pay affiliates only when they see the affiliate sales. It means there is no requirement to pay upfront for ad space. Affiliate marketing is an effective option for brands to reduce their risk while still benefiting from selling online during this coronavirus pandemic.
Despite the downside of COVID-19, the affiliate marketing industry has the potential for increased growth during these uncertain times. Active affiliates, affiliate networks, and brands can work together to weather the storm and reap the benefits.
The global cryptocurrency market size is undoubtedly facing a dramatic uptrend while many emerging markets are untapped.
Global crypto owners increased by 21% in the first half of 2023, rising from 425 million in December 2022 to 516 million in June 2023.
Bitcoin (BTC) owners grew by 22% from 219 million in December 2022 to 267 million in June 2023, accounting for 52% of global owners;
Ether (ETH) owners grew by 21% from 87 million in December 2022 to 105 million in June 2023, accounting for 20% of global owners.
The next wave of adoption will be driven by Central & Southern Asia, Latin America, and Africa, promising another skyrocketing growth in the number of crypto users.
More and more crypto users do not consider crypto investments a hobby, but a source of income, even a primary one. Therefore, with the rise in the number of crypto users, they are unstoppable in seeking opportunities to collect cryptocurrencies.
In October, Bitcoin (BTC) broke above $35,000 for the first time since May 2022, but the world’s first cryptocurrency finished the month back below that key psychological level heading into what may be an action-packed November for crypto investors.
Cryptocurrency prices have trended higher so far in 2023 as the outlook for the U.S. economy has improved. In addition, investors are piling into Bitcoin as they anticipate the U.S. Securities and Exchange Commission will soon approve the first ever Bitcoin spot exchange-traded fund to trade on a major U.S. exchange.
The bullish late-month trading action in Bitcoin and Ethereum (ETH) was driven largely by the hope asset managers such as Fidelity Investments and BlackRock will be among the first applicants greenlit by the SEC to launch Bitcoin spot ETFs, lending further credibility to cryptocurrencies and opening the door for more widespread adoption.
Also in October, Grayscale Investments landed an additional major victory over the SEC in appeals court as it seeks to convert its popular Grayscale Bitcoin Trust (GBTC) into a spot ETF.
