By 2024, more than two-thirds of the global ad spend will be digital ads, showing an amazing turn in where the advertisers are placing their budgets. This increase in digital ad revenues underlines the global trend for online marketing channels, benefiting affiliate marketing.
In contrast, it’s becoming a top channel for high-performance, ROI-driven advertising. The increasing shift online means that affiliates are well-placed to grasp every pixel, count every outcome, and make optimum use of every result from brands that want to outrun the competition.
We’ve researched the latest affiliate ad performance statistics to help affiliates dominate growth in ad revenue and discover the latest trends to prepare for the future.
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Key Affiliate Ad Performance Statistics
- 42.9% of marketers report that affiliate marketing brings in more revenue than ad monetization.2
- The good ROAS is often considered to be 4:1, or 400%, wherein you earn four dollars for every dollar you spend on advertising. It can also be related to the quality of your affiliate ad campaign.3
- Affiliate marketing averages a return of 12:1 about ad spend.6
- By 2025, half of all affiliates will employ programmatic advertising, allowing them to automate ad placements targeting specific groups.5
- Facebook Ads and Google Ads hold the highest ROI.5
Affiliate Marketing Takes The Lead
42.9% of marketers find affiliate marketing more profitable than ad monetization, reflecting a few key advantages. First, affiliate marketing runs on a performance-based model in which brands pay affiliates only when an action-partner sale or lead is completed.
This results-driven approach doesn’t require high upfront costs and reduces financial risk, making every dollar count toward measurable outcomes. On the other hand, monetization models concerning advertisements, such as CPM or CPC, are mainly cost-incurring models where views or clicks might not always translate to their conversion, making their returns less predictable.
Affiliate marketing also allows brands to reach highly targeted audiences through affiliates specializing in particular niches or communities. Affiliates often produce content, reviews, and recommendations that feel genuinely authentic and resonate with the audience in ways that traditional advertisements cannot.
This can make the potential customer feel much more connected to the recommendation, increasing the chances of conversion and extending the value an affiliate drives for a brand by growing revenue.
Last but not least, ad fatigue in ad monetization means audiences are increasingly tuning out traditional ads or using ad-blocking software. Returning to affiliate marketing, avoiding these problems, and integrating product or service recommendations more organically into the content for less disruption.
To marketers, this can mean longer-sustained, high-quality traffic that may convert better, which is perhaps why so many find affiliate marketing a more consistent revenue generator than ad monetization.
Affiliate Ad Fraud Statistics
- According to CHEQ, a cybersecurity firm currently monitoring the trend, some 17% of all Affiliate Traffic in 2022 came from ad fraud, which amounted to losses of $3.4 billion last year.1
- As many as 45% of all affiliate traffic is invalid. Ad fraud is expected to reach $100 billion globally by the end of 2023.4
How To Prevent Ad Fraud
Topping the list of digital marketing challenges is the statistic that 45% of all affiliate traffic is invalid. Of course, this refers to ad fraud, defined by invalid traffic with bots, fake clicks, or fraudulent affiliates that distort performance metrics, leading to incorrect insights.
Since such a huge percentage of the traffic is not valid, it essentially means that almost half of affiliate marketing traffic may not get any real engagement or conversions; it means advertisers are spending on actions that don’t drive real value.
This links to the broader trend in digital advertising, with ad fraud on pace to hit a whopping $100 billion globally by the end of 2023. Fraud has spiked because methods for creating fake traffic have become increasingly complex, with bots faking human-like behavior or networks creating fake affiliate sites that trigger payouts. These frauds may cost brands by getting chipped into their overall revenue, let alone all the time and resources you will have to invest in filtering and preventing fraud.
This means that, for marketers and brands reliant on affiliate marketing, the statistic indicates the need for investment in tools to detect and block invalid traffic. With fraud detection measures set up, regular auditing of affiliates, and third-party verification services, companies can significantly reduce manifestations of the impact brought about by invalid traffic.
Worldwide Ad Performance Statistics
- Affiliate spending, email marketing, and advertising on comparator sites reached €970 mln in France in 2023, compared to €905 mln a year earlier. Spending has increased seven percent year on year.7
- In a survey among decision-making marketers using affiliate marketing in France, Germany, the United Kingdom, and the United States, 28% said they believed affiliate marketing’s unique strength was that new innovative marketing partners always entered the channel.8
Affiliate Marketing vs.Traditional Marketing
The fact that 28% of decision-making marketers in France, Germany, the United Kingdom, and the United States believe affiliate marketing derives its strength from the constant influx of innovative partners speaks to one of the channel’s key advantages.
Unlike most traditional marketing channels, affiliate marketing benefits from diversity and flexibility by embracing new partners who bring new approaches, emerging technologies, and niche audiences. This influx of innovation in the channel keeps it agile and ensures brands reach audiences ever-creatively.
- In 2023, affiliate advertising expenditures in Japan reached 73.2 billion Japanese yen, a decline of more than 23 billion yen compared to the previous year.9
- A 2021 survey of digital content creators found that 60 percent had not yet chosen to monetize their content, while less than one in 10 said they were earning more than 10,000 U.S. dollars. 10
- Among the niche creators that successfully monetized their online efforts, 23 percent of those surveyed said they were selling their physical products.10
How To Monetize Your Content
The 2021 survey’s finding that 60% of digital content creators had not monetized their content and less than 10% earned more than $10,000 underlines the complexity and challenge of turning digital content into a profitable venture.
Most creators, especially at the starting levels, focus on building an audience rather than rushing into monetizing. Other creators could start by focusing on the credibility they must have in the industry and dependable followers, as once the base is strong, other options for monetizing could be sought. Early monetizing might lead to losing the audience or hamper these influencers’ earning consistency if their following isn’t good.
Lastly, less than one in 10 creators make more than $10,000, which emphasizes the dire difficulty of making a high income solely from content creation.
Bottom Line
Since over two-thirds of the world’s ad spend is expected to be digital in 2024, affiliate marketing would be a top choice for brands needing high-performance, ROI-driven campaigns.
Affiliate marketing is inherently dynamic; adding new affiliate partners brings new strategies, technologies, and niche audiences to keep the channel relevant but dynamic. This is of great value to brands, as it allows them to differentiate in meaningful ways by reaching audiences that might be missed through traditional ad channels.
As digital advertising continues to grow, affiliate marketers must be attentive to the challenges that can arise, such as ad fraud and invalid traffic. By investing in solid fraud detection, regular partner auditing, and adherence to best practices, brands will be better positioned to utilize the affiliate budgets where they belong to legitimate, high-quality traffic delivered through real engagement.
Frequently Asked Questions
How do I start affiliate advertising?
First, choose a niche and find affiliate programs that pertain to that sector. Afterwards, you can promote affiliate links through blogs, socials, or email.
How to create an affiliate ad?
With the affiliate link, promote the product by content marketing, such as social media posts, blogs, or videos showing people how good the product is and why they should click it.
Are affiliate marketers paid just for the clicks?
EPC is an abbreviation of earnings per click. It describes how much one can make average when one of his affiliate links is clicked. 15 Sept 2024
How much money can a beginner affiliate make?
Earnings can vary, though. They can start at $10 and go up to above $100,000 monthly, depending on the volume of traffic being built, the niche in concern, and the strategy behind all of these combined.
How do I get affiliates to sell my product?
Join affiliate networks and offer competitive commissions, providing your affiliates with marketing materials and resources to succeed in selling your product.
