Key Insights on Affiliate Marketing from eMarketer’s Latest Research

Affiliate marketing is undergoing a major shift. With spending projected to hit $11 billion in 2024, this once secondary channel has become a powerful engine for growth in the digital economy. But what’s driving this momentum? And how can businesses leverage these trends to stay ahead?

In an episode of Revenue Boost: A Marketing Podcast, Max Willens, Senior Analyst at eMarketer, shared exclusive insights from eMarketer’s latest research, revealing key trends in affiliate marketing, the growing role of data-driven strategies, and how businesses can stay competitive in a rapidly evolving digital landscape.

In this article, let’s break down the key findings and explore how marketers can position themselves to capitalize on these shifts.

Insight #1: Affiliate Marketing’s Growth and Revenue Potential

Affiliate marketing has consistently demonstrated its value as a robust revenue channel. eMarketer’s latest research projects that U.S. affiliate marketing spending will reach $11 billion in 2024, with expectations to rise further to $12 billion by 2025. This growth underscores affiliate marketing’s enduring relevance, particularly as other channels such as search and social media also evolve.

While affiliate marketing’s growth may not be as meteoric as retail media, which eMarketer projects will grow by 25% annually over the next five years, it remains an important pillar of digital advertising. The channel’s success is driven largely by the ongoing expansion of e-commerce and the increasing involvement of agencies focused on driving measurable sales.

Insight #2: Flexibility and Adaptability of Affiliate Marketing

A standout feature of affiliate marketing is its inherent flexibility. Brands are finding new ways to leverage the channel across a variety of platforms, from connected TV (CTV) to content publishing websites. Affiliate marketing enables brands to reach consumers at every stage of the buying journey, from discovery and research to purchase and beyond. This flexibility allows marketers to tailor their messaging to specific audiences and optimize touchpoints for greater conversion potential.

Furthermore, affiliate marketing offers brands the ability to test different strategies without the significant upfront costs associated with traditional advertising. By using performance-based models, marketers only pay for measurable outcomes, such as clicks or sales, creating a low-risk, high-reward scenario.

Insight #3: The Role of Influencers in Affiliate Marketing

eMarketer’s research also highlights the increasing role of influencers in affiliate marketing. The rise of content creators and influencers as key players in the affiliate space has introduced both competition and opportunity. Influencers, who already have loyal and engaged audiences, can drive traffic and conversions in ways that traditional publishers may struggle to replicate. Their influence is particularly strong in sectors like fashion, beauty, and lifestyle, where consumers look to trusted personalities for product recommendations.

However, this influx has also intensified competition, making it essential for traditional affiliate marketers to refine their strategies. Collaborating with influencers allows brands to diversify their marketing channels and gain access to highly engaged niche audiences. Yet, this shift requires marketers to stay nimble, balancing traditional affiliate partnerships with the growing influencer market.

Insight #4:Consumer Savviness and Changing Expectations

One of the most compelling insights from eMarketer’s research is the evolving behavior of consumers. Today’s shoppers are far more savvy, with rising expectations around product discovery and purchase incentives. eMarketer’s findings suggest that consumers no longer rely solely on product recommendations—they are also looking for added value in the form of discounts, coupons, and other incentives.

This shift in consumer behavior is having a profound impact on affiliate marketing strategies. Marketers must go beyond offering basic product endorsements and focus on delivering a holistic experience that resonates with the consumer’s desire for value. As consumers increasingly seek personalized experiences, brands that can meet these demands through targeted content and offers will find themselves well-positioned for success.

Insight #5: The Growing Importance of Data-Driven Strategies

Data is at the heart of modern affiliate marketing strategies. eMarketer’s research emphasizes the growing importance of first-party data, which allows brands and publishers to create targeted and personalized campaigns. As third-party cookies phase out and privacy regulations tighten, first-party data will become even more valuable.

Publishers that harness first-party data will enjoy strategic advantages. They can offer advertisers highly targeted campaigns that resonate with specific audiences, driving better results and higher conversion rates. Additionally, data-driven strategies allow brands to optimize offers, customize discount levels, and fine-tune content based on audience preferences.

This strategic use of data not only strengthens relationships between publishers and advertisers but also ensures that campaigns remain relevant in an increasingly competitive market. Publishers that fail to leverage first-party data risk being left behind as data becomes the key differentiator in the affiliate landscape.

Insight #6: Retail Media’s Influence on Affiliate Marketing

Retail media, a rapidly growing segment, is playing an increasingly influential role in the affiliate space. Platforms like Amazon have built enormous affiliate ecosystems that drive significant traffic and sales. As retail media networks expand, their intersection with affiliate marketing becomes more pronounced.

Affiliate programs, such as Amazon Associates, have long been a staple of retail media’s success. The integration of first-party retail data into affiliate campaigns has enabled brands to deliver more targeted ads, optimizing the consumer journey from discovery to conversion. This convergence offers both opportunities and challenges for affiliate marketers, as retail giants like Amazon continue to set the pace for innovation and growth.

While retail media's dominance is undeniable, there are risks. Smaller affiliate marketers may struggle to compete against retail media giants, especially those with access to vast amounts of consumer data. As this trend continues, affiliate marketers will need to adapt their strategies to coexist alongside larger players or risk losing ground.

Insight #7: Challenges Facing Publishers

The affiliate marketing landscape has become increasingly competitive, with the rise of influencers and the growing dominance of retail media. Publishers face significant pressure to diversify their traffic sources and reduce their reliance on Google and other third-party platforms. Recent changes in Google’s algorithms have disrupted the traffic flow for many publishers, forcing them to rethink their strategies.

To stay competitive, publishers must invest in brand-building, SEO, and direct engagement with their audiences. This requires a shift away from relying solely on traditional traffic sources toward developing holistic marketing strategies that prioritize content quality and audience loyalty. Those who succeed in building stronger relationships with their audiences will be better positioned to weather the shifting dynamics of the affiliate market.

Looking Ahead: The Future of Affiliate Marketing

As eMarketer’s research shows, affiliate marketing is set to continue its growth trajectory, but the landscape is evolving rapidly. The future of affiliate marketing will be driven by data and personalization, with first-party data becoming a cornerstone of effective strategies. Brands that can integrate commerce media and adapt to changing consumer expectations will be the most successful in the years to come.

While challenges persist—such as increased competition and the dominance of retail media—there are ample opportunities for growth. By staying adaptable and leveraging the power of data, affiliate marketers can ensure that they remain relevant in this dynamic environment.

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