By Harvey Holloway
Digital marketing has taken over the world of business promotion, with the entire industry now worth a whopping $223.2 billion. One of the most popular strategies to engage an online audience is affiliate marketing, in which third parties promote links to products/services in return for a commission on any sales made.
But, as a relatively new strategy, how it will fare year on year is much speculated, with the impact of financial markets on affiliate marketing often directly affecting its overall performance.
To give you more of an understanding of how viable affiliate marketing will be on either side of the table, we’ve looked at expert forecasts and predictions for 2023. Let’s dive in!
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1) Inflation is Fueling Interest in Sales Discounts
Inflation has been pushed up around the world, and although it is showing signs of slowing in many countries, the figures are still high. As prices increase, this has a direct effect on shoppers, leading to less disposable income for most households to spend on goods and services. For affiliate marketers, though, this isn’t necessarily a bad thing.
As with the crash of 2008, current inflation has people keen to find savings where they can. In 2022, 67% of Americans surveyed agreed that they were on the hunt for bargains more than ever – and with the financial situation much the same in 2023, that’s unexpected to have changed.
Affiliate strategies including discounts, cashback, and loyalty programs are likely to be much more appealing as shoppers tighten their purse strings.
2) Volatile Stock Market Is Increasing Fear
It’s anticipated (and almost expected) that the state of the stock market won’t improve in 2023. Instead, it’ll remain volatile, with inflation, slow growth, and government borrowing all throwing the markets off balance. In the same way that inflation is driving financial fear, this instability in the markets will as well.
However, this isn’t necessarily bad for affiliate marketers. Stock market volatility also tends to push up demand for bargains, with discounts offered through a third-party affiliate more likely to gain traction in a money-savvy market.
We recommend keeping an eye on the stock markets via an expert opinion platform – like TraderX – to understand more about consumer behavior!
3) Marketing Trust is More Vital Than Ever
Unfortunately, the fact that consumers are looking for a bargain isn’t a well-kept secret.
Businesses around the world are aware that now’s the time to be offering deals and discounts, leading to offers almost everywhere you look. Affiliate marketing is also bigger now than it ever has been, with the industry worth a massive $17 billion in 2023.
All of this leads to a somewhat oversaturated market. Because of this, we expect that trust will become more important than ever between the consumer and the affiliate.
For example, it’ll be better to partner with a social media influencer with a focus on long-term followers than one with more followers but less trust. Only when the consumers believe the affiliate is offering a good deal are they going to jump on the offer.
4) An Ever-Increasing Reliance on Automation and AI
The financial markets aren’t just affecting consumers, but businesses, too. Inflation and tightening purse strings have a knock on effect for companies – particularly SMEs – who are likely to become more wary in the face of financial crisis. What money they spend needs to be spent carefully.
This is where AI comes in. During 2023 and beyond, it’s likely that AI and machine learning will continue to make an impact on the affiliate industry. Using AI, marketers can automate their campaigns and create more focused targeting to increase the volume of sales through their affiliate links.
AI can help with tasks such as audience segmentation, data analysis, and even writing copy for your campaigns, helping improve the effectiveness of campaigns. (See more about how to use ChatGPT as an affiliate marketer.)
These tools can analyze consumer behavior, looking at how different audiences interacts with your links and comparing the success of different marketing methods.
Although still in the early stages of development, this sort of analysis and efficiency shouldn’t be underestimated. AI can ensure that marketers are spending their money wisely and in a way that their audience responds to, helping increase ROI for better financial performance!
Would a Recession Impact Affiliate Marketing?
Though global markets are improving, some countries are still tiptoeing near recession levels. If your local market falls into an economic recession, how will affiliate marketing hold up?
It’s a tough thing to know for certain. Spending would almost certainly shrink again, as consumers fear how a recession will impact their own finances. But, as we’re currently seeing, that would also drive the demand for opportunities to make money online among end customers.
And because performance affiliate marketing is a lower-risk model where brands only pay when they get a sale, many of them turn more to affiliate marketing and rely on platforms like ClickBank that they know work, rather than taking bigger financial risks in turbulent times.
The number of affiliates looking to join programs could also increase. As recession makes personal finances more of a serious issue, people may look for ways to make extra income, with affiliate marketing being high on the list. It’s simple to do, a passive form of income, and one that can see affiliates bringing in large sums of money that shouldn’t be overlooked.
Financial Markets on Affiliate Marketing: Final Word
As with every form of marketing, the affiliate industry is always affected by the changing financial markets.
This year, we recommend keeping an eye of inflation and stocks, and if both continue to drive up financial uncertainty, it could mark the right time to get started as an affiliate.
No matter what your situation, there’s value in keeping up with what’s happening in affiliate marketing. It’s a cutting-edge indication of how people are able to make money online, so we recommend brushing up on the necessary skills for affiliate success with Spark by ClickBank, an all-in-one affiliate marketing education platform from ClickBank.
With Spark, you’ll get access to all of the courses, tools, and community you need to grow your affiliate business. Check it out!