Affiliate marketing is a type of partnership where influencers promote products and services in exchange for a commission. This tactic provides a flexible and cost-effective alternative to traditional, pay-up-front marketing strategies. It can help ecommerce businesses cut customer acquisition costs, access niche consumer groups, and boost conversions.
It can also help you address online marketing issues specific to your industry or products. For example, John Murphy, an affiliate marketing expert and owner of The Cold Plunge Store, turned to affiliate tactics after learning that major digital ad vendors prohibited ads for electric bicycles, his core product at the time.
“I got suspended for Facebook and Google Ads,” John says, “so I started listening to affiliate marketing podcasts to figure out how they get organic traffic.” John copied the techniques of successful affiliate marketers and eventually launched his own affiliate program, effectively promoting his products without taking out paid ads.
These affiliate marketing statistics show how business owners are harnessing the unique benefits of affiliate marketing to reach the right consumers and encourage them to convert.
Affiliate marketing statistics
Affiliate marketing is on the rise. Here are some of the most relevant stats you should know:
The global affiliate marketing industry is worth close to $16 billion
The affiliate marketing industry has grown 83% since 2017, and Influencer Marketing Hub estimates that global affiliate marketing spending will total $15.7 billion by the end of 2024.
US dollars account for over half of the total affiliate marketing industry spend
American affiliate advertisers spent 62.7% of all affiliate marketing industry dollars in 2017, and experts predict that US businesses will spend close to $10 billion in 2024—approximately 60% of the year’s projected global spend
Experts anticipate continued affiliate marketing industry growth
Analysts expect the affiliate marketing industry to grow at a compound annual growth rate (CAGR) of 18.86% between 2023 and 2032, reaching a value of nearly $40 billion by the end of the forecast period.
More than four out of every five marketers use affiliate marketing tactics
In 2023, Forbes reported that83% of marketers use affiliate marketing programs to drive brand awareness.
Affiliate marketing campaigns are becoming more important to marketing teams
In 2022, 80% of marketers said that affiliate marketing strategies would become more important or significantly more important to their businesses in the next year.
Retail generates more affiliate marketing revenue than any other industry
Retail businesses generate 44% of all affiliate marketing revenue. Telecom and media businesses hold second place, generating 25% of affiliate marketing revenue, and travel and leisure companies come in third, at 16% of the industry total.
Fashion is the most popular affiliate marketing niche
The fashion industry accounts for 23.27% of all affiliate marketing programs, and the sports and outdoors niche comes in second with 18.6% of market share.
Flat rates are the most common affiliate marketing program payment structure
Nearly half (48.9%) of affiliate programs offer flat-rate payments. Only 42.4% pay percentage commissions, and fewer than 5% of programs use other incentive types.
Most affiliate marketers earn less than $10,000 per year from affiliate partnerships
Although successful affiliate marketers can make hundreds of thousands of dollars per year, the average affiliate marketer earns significantly less. Research shows that 57.6% of affiliates earn less than $10,000 in affiliate income annually.
Marketers attribute unique strengths to affiliate marketing programs
According to one 2024 survey, 28% of marketers believe that providing clear, incremental value is a unique strength of affiliate marketing, and 24% say that the opportunity to partner with a variety of marketing partners distinguishes this strategy. Other commonly cited differentiations are simplicity, transparency, and reliability as a revenue source.
Over half of US marketers use affiliate marketing for pre-purchase outreach
Affiliate marketing is most popular as a pre-purchase tactic, with 56% of marketers using it at the awareness stage, 58% at the consideration stage, and 50% at the conversion stage. For post-purchase retention, 32% of marketers report using affiliate marketing.
Over half of brand marketers rank affiliate marketing as one of their top three customer acquisition channels
Affiliate marketing is one of the top three customer acquisition channels for 54% of marketers, and 20% rank it as their most successful channel.
Most affiliate advertisers say that affiliate programs account for between 21% and 60% of their total marketing spend
According to one 2022 survey, 26% of marketers allocate between 21% and 40% of their total marketing budgets to affiliate marketing efforts, and 25% of marketers allocate between 41% and 60% of their marketing budgets to affiliate marketing.
Affiliate marketing fraud costs businesses billions of dollars each year
Fraud is a major problem in the affiliate marketing world. Cybersecurity firm CHEQ reports that ad fraud generated 17% of all affiliate traffic in 2022 and caused $3.4 billion in losses in that year alone. Analysts expect losses to mount as affiliate marketing grows more popular. To avoid affiliate fraud, keep an eye out for affiliates that have a much lower sales conversion rate than usual—they may be sending fake traffic to your store.
Amazon Associates is the largest affiliate network
Amazon Associates has the most affiliate programs of any network, as well as the greatest number of advertisers. The network commands 21.65% of affiliate market shareand partners with nearly one million affiliate publishers worldwide.
The majority of affiliate advertisers say that affiliate marketing brings in high-quality leads
According to Forrester Research, 52% of marketers believe that their affiliate programs provide high-quality prospects. Over half of marketers also say that these programs promote customer loyalty and improve performance transparency.
Over half of consumers have purchased a product from an affiliate website
Top coupon affiliate websites like Groupon (which share discounts and offers on behalf of companies) can generate hundreds of thousands of dollars each year, and 56% of online consumers have bought something via an affiliate site like Wirecutter (which reviews products and generates revenue when readers purchase those products).
The average affiliate manager salary in the US is $67,562 per year
US affiliate managers earn between $51,000 and $91,000 per year in base pay and between $83,000 and $152,000 in total compensation.
Affiliate marketing statistics FAQ
How does affiliate marketing work?
Affiliate marketing is a partnership between a business and an individual content creator, or affiliate. The affiliate promotes the business’s products or services, and the business pays the affiliate a commission for specific customer behaviors (such as purchases) resulting from the affiliate’s activities.
Is affiliate marketing in high demand?
Yes. According to Forbes, 83% of marketers used affiliate marketing as of 2023, and analysts expect the affiliate marketing industry to grow at a compound annual growth rate (CAGR) of 18.6% between 2023 and 2032.
What is the average ROI for affiliate marketing?
The return on investment for affiliate marketing programs varies widely. As a performance-based marketing strategy, affiliate marketing also offers businesses the unique opportunity to set ROI themselves. They can use a commission-based payment structure and factor in the costs of joining an affiliate network or purchasing the right affiliate management tool.
Is affiliate marketing oversaturated?
Some affiliate marketing niches are competitive, but high-earning affiliate marketers can still earn significant income promoting affiliate links. Although it can be difficult and time-consuming, affiliate marketing is far from oversaturated; success primarily comes down to your ability to build a following and offer products that genuinely interest them.
