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Future of Affiliate Marketing in 2021 and Further.

There are different ways to make passive income online but the most promising and exciting way to generate money working from home is Affiliate marketing.

Well, I am not sure, you aware of the Affiliate marketing or its ways or not but in this guide, I have provided all the aspects of what is Affiliate marketing and the future of Affiliate marketing.

But before that, let me drill down some stats which makes you surprised at how powerful this is going to be.

Affiliate marketing is starting to become increasingly relevant to various industries.

According to estimates presently (2020), the size of affiliate marketing is set to touch $6.8 billion in the US alone, which is indicative of the size, growth, and scope of this marketing the world over.

Before we go any further, let’s understand – what is affiliate marketing?


What is Affiliate Marketing?

Probably you have seen companies selling their own products and competing with each other and cause one is winning the race and others not.

As it is tough for any company to reach out to all the relevant audiences and anyone of them who has a large budget on advertisement not even touches every corner of the world, even they have great products.

There they try to find out people, who already have a genuine audience in the same niche and ask them to promote their product in exchange for a percentage commission, which is called affiliate marketing.

Still, confused? Don’t worry let me explain in detail.

What is Affiliate Marketing

In affiliate marketing total 3 parties come into the picture.

  • Product Owner: Actual manufacturer or service provider.
  • Publisher: People like you and me who have a blog or YouTube channel or following in a specific niche.
  • Consumer: Actual Buyer of the product.

Here the Product owner will invite all the publishers to register on their own platform as an affiliate and provide them a special promotional link for the product.

This means you apply for their affiliate program and once got approved will be given a unique link in your name and that link you have to share with your audience and need to explain to them why that product is better than others.

If the end-user or consumer buys that product through your link, you will make the agreed commission from the actual product owner.

Well, you can track, how many people have clicked on those links and how many have actually bought that product using your link inside your affiliate dashboard.

The commission for the sale of the products varies from company to company such as it can be as low as 5-10% to $100 per lead.

Here is the list of the top 11 affiliate programs that pay up to $125 for generating any sale.

If I summarise this in a nutshell then affiliate marketing is a way to help actual consumers or buyers connect with the actual product owner and help them to generate sales and in return you make income.

Well, I am pretty much sure you got an idea about Affiliate marketing and this seems to be a promising business model.

But what about the future of Affiliate marketing in 2021 or Onwards.


Future of Affiliate Marketing

This kind of marketing utilizes a website or a blog as marketing channels for showcasing the adverts.

When the website visitor purchases by clicking an advert (affiliate link) on the website; the owner of the website makes a commission on the sale.

This kind of marketing has become more prevalent with the rise of online companies that are known to utilize affiliate marketing to the maximum.

By now, everyone must be convinced that affiliate marketing will continue to grow. Still, the pertinent question here is how it is going to shape up in 2021 or into the immediate future.

This write up seeks to shed light on the future of affiliate marketing and look at trends that are going to shape affiliate marketing. Let’s look at them one-by-one.


Native Advertising

This kind of advertising is not done as traditional banner ads; rather, the advertising is carefully slipped in between the content. And we are likely to see more of this in 2021.

If not sure then watch below how the related ads which matching the content are slipped in between the paragraph.

Native Advertisement

Studies have suggested that this kind of advertising is more effective due to an emerging phenomenon known as ‘banner blindness’.

By repeated exposure to banner ads, viewers are selectively filtering out advertising from the content they are engaging with as unnecessary stimuli.

More brands are likely to join native advertising in a bid to increase the ROI from their marketing campaigns.


B2B Campaigns

In the past, affiliate marketing was strictly identified with B2C companies.

That is no longer the case, as an increasing number of B2B companies are opening up to the lucrative possibilities offered by affiliate marketing.

One of the prime examples where this trend is gaining momentum is with web hosting companies, who are actively advertising on affiliate sites to generate new business and clients.

The basic understanding is they want to capture more leads as much as possible so the potential marketing is going to very huge and of course more affiliate commission.


Video Content

Going into the future, we are likely to witness more advertising getting done through video ads because of the increased effectiveness associated with the medium.

This trend will encourage more affiliate marketers to carry out advertising on affiliate sites through video ads.

In 2021, we are likely to see a different aspect of affiliate marketing, wherein companies will do advertising through strategic product placement within the video content.

Youtube Video Contnet

If you want you can start here right now! In this kind of affiliate marketing, we shall see content marketers approaching brands with advertising possibilities than the other way around, which used to be the norm.

The most popular example is Youtube influencers, who create exclusive videos as part of the product review or suggest a product as a solution to a particular problem.

As result, they can explain better to users by creating attractive videos that help publishers to convert the potential viewer into the product buyer or consumer and can make affiliate commission.


Mobile-Friendly Advertising

A recent Google Analytics report suggests that people made 40% of online transactions with mobile devices, and the same study indicates that 70% of searches on mobile devices led to a purchase.

This kind of number will compel affiliate marketers to change tack and optimize content for mobile advertising in a big way.

Mobile Affilaite marketing

Even though desktops still commands the lead in conversion rates, with the rising number of mobiles and tablets, we might see mobiles overtaking desktops anytime soon.

This makes it imperative for affiliate marketers to tie-up publishers who provide mobile-friendly content; else there is a possible chance of losing out on a sizable chunk of the audience.


Influencers are becoming Prominent

As we bid goodbye to 2020, we could see more affiliate marketers making a beeline for social influencers, especially micro-influencers.

These are influencers with less than 10,000 followers but are known for loyal followers among their audience.

Influencer marketing

Brands that are active with affiliate marketing are likely to engage more with such influencers in the future.

By collaborating with a brand, the influencer not only improves his/ her financial prospects but also enhances his standing among his audience as a credible voice on the social platform, attracting more followers.

As for the brand, they get exposure to a highly influential audience segment. Overall, it is a win-win situation for both parties.


Increased utilization by Ecommerce

Affiliate marketing and eCommerce are a natural fit. Some of the top online brands and retailers (especially beauty & fashion) are active with affiliate marketing in a significant way.

Going into 2021, we shall see more online brands reaching out to publishers for affiliate marketing.

ecommerce advertisement

This is because getting affiliate marketers on board and measuring their marketing success has become way easier than before.


Seasonal Advertising

There used to be a time when publishers were mostly affiliated with the same products without any room for changes.

However, this is changing as more and more publishers are switching products according to seasonal demands.

This is made possible through data tracking tools. With more businesses making use of consumer data to market their products, seasonal advertising is likely to be seen as a significant change coming in 2021.

One of the brands that are leveraging affiliate marketing in a big way is InVideo, the online video editing platform that is known for being friendly for non-technical users.

Invideo editing


More allocation in Marketing Budget

Statistics say that affiliate marketing has been growing at 10% since 2015, and it is likely to continue beyond 2021.

Such visible trends do not go unnoticed by brands, and this is likely to have an impact on the allocation of ad dollars towards affiliate marketing.

Companies active with affiliate marketing are likely to increase their budget allocation towards affiliate marketing going into 2021.


Wrap Up on Future of Affiliate Marketing

The marketing landscape is always known for its dynamism and remains in a constant state of flux. And, it is highly unlikely to find similar marketing trends in consecutive years.

Hence there could be trends that can catch you off-guard, but it should not discourage you from gauging, tracking, and being prepared.

This write up would have given you enough ideas to remain prepared for 2021, and we hope you can implement them with success in the coming years.

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