Is affiliate marketing dead, or is it simply evolving? This article reviews current data, industry trends, and changes in online marketing to answer whether affiliate marketing is still a viable business model in 2023—and what shifts are necessary to succeed.
If you want to learn more about the industry in general, read the following article that answers the question “What is affiliate marketing?‘.
Is Affiliate Marketing Still Profitable? What Do the Numbers Say?
The figures are clear: money spent on affiliate marketing in the United States alone is steadily going up. And there are more numbers to back up the idea that affiliate marketing is very much alive:
Most brands and advertisers use it to some extent.
15% of the whole digital advertising revenue can be attributed to affiliate marketing.
The industry itself is booming. People are making money out of it.
The whole industry is now worth $13 billions, a steep rise from 2022’s worth of $8 billion.
Some people make very good money with it.
The more our activities move online, the more important affiliate marketing should become.
The rising tide lifts all boats.
At least it should.
If you look at the ‘affiliate marketing’ search query in Google Trends, you will see that the trend is rising. This may be the indicator of the growing importance of the industry. However, it may also mean that more and more people join the game.
This brings us to the second part…
Is Traditional Affiliate Marketing Dying?
At least, the affiliate marketing as we have used to know it.
Hastily written product reviews with affiliate links in them are fading away.
Pervasive banners are no more.
Forced continuity offers are getting blocked by banks.
Affiliate marketing is no longer a secret and exclusive club for initiates.
When there are too many boats to lift, the tide may leave some of them behind.
What Are the Main Challenges Facing Affiliate Marketing?
Growing competition
More people want to become affiliate marketers than ever. The idea of working from home is getting more and more attention, especially in troubled times such as ongoing coronavirus epidemic. This drives people to search for job opportunities that can be done solely from the confinements of their homes.
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There will be more affiliates fighting for the same offers and bidding for the same (but growing) traffic.
Affiliate Marketing is transforming
Internet giants are tightening their ad policies. Pressured by governments or public opinions, they ask for better content regulations.
In general, affiliate marketing is actively being shaped into a brand-safe place. For brands, affiliate marketing offers a semi-organic way of reaching the right people.
A usual way of brand advertising are generally-targeted sponsored posts on social media or editorial-like native ads. In affiliate marketing, those ads are precisely targeted, aimed at people with the highest chances of engagement.
This is because affiliate marketers want to make profit – so they do everything they can to fulfill a brand’s goal, and have some additional money left for themselves. In short, today’s affiliate marketers are pros.
Inclusivity
While more people will be jumping on the affiliate train, big companies hosting affiliate programs may become more careful when accepting new program joiners. They may try to vet people more, put requirements such as having a successful site and so on.
The importance of lead quality will grow. Beginner affiliates are less likely to deliver it.
SEO changes
Search engine optimization is an ongoing game where affiliates try to decipher and keep up with the newest algorithm changes.
But the overall trend is clear: it is harder to rank on the first spot in Google. With the growing expansion of ads in SERP and featured snippets, the first spot may not even be visible. On top of that, what algorithm deems important may change overnight.
Read this great article on the importance of SEO in the times of COVID-19.
The only way to stay visible will eventually be to pay.
Already spending money on Google Ads? Visibility will cost you a lot. The average cost of traffic will rise. Affiliate marketing will become a game for those with bigger budgets.
The rise of brands
For all the “make a quick buck” affiliates: a change is coming. Google and Facebook always liked brands and they will grow to love them even more.
If you have run some generic offers, it is time to invest in building your own brand. Brands are the future.
Is Affiliate Marketing Really Over or Just Transforming?
You may have noticed that the part of the article listing arguments supporting the death of the affiliate marketing is much longer than the part about how thriving it is as a business.
All the arguments in the world shouldn’t cloud the fact that it’s still a 12-billion-dollar pie to share.
What’s the final answer?
The “death of affiliate marketing” is just a figure of speech pointing out the fact that it is undergoing a significant change. It will still be profitable.
Maybe not for all.
Maybe not for the unprepared ones.
But the money is still there and it will stay that way till the end of the Internet.
How Did the Pandemic Impact Affiliate Marketing?
The times of the global coronavirus pandemic has turned the traditional knowledge about what works upside down. What used to work may not work anymore and things that you may have not even thought of are performing like crazy.
We have an extensive article describing what works during the coronavirus crisis.
We can safely say that affiliate marketing is a line of work that is very desirable right now for a few good reasons:
- It allows people to work from home
- It requires relatively low initial investments
- It doesn’t require any specific skills or educations
The virus didn’t kill the affiliate marketing definitely. But it had an impact on it, in a good way as well:
- There are a lot of offers to choose from
- Average CPC has dropped, even by 70 – 80 % in some cases
- There are more potential eyeballs as everyone are on the Internet right now
The good summary of the current situation was given by Luke Kling, affLIFT Founder:
The affiliate industry as a whole seems to do better when there is uncertainty in the economy.
One way is certain: what we have used to know as ‘affiliate marketing’ is dying.
All hail the new affiliate marketing. Which will be very similar to the old one in some aspects but very different in others.
Is Affiliate Marketing Still Worth Pursuing in 2023?
Affiliate marketing is a great earning opportunity in 2023, with earnings reaching up to $150k per year. The global uncertainty and threats of recession only fuel searches for the best online deals.
It is worth remembering that affiliate marketing is, above all, a normal business rather than a ‘get rich quick’ scheme, where some investments are required, and the learning curve is steep.
Affiliate marketing is and will be profitable only if you are willing to put some effort int mastering it. Unlike other businesses, it has relatively low barrier of entry and may serve great as a additional income channel.
What Skills and Tools Do Affiliates Need for Success in 2023 and Beyond?
The death and re-birth of affiliate marketing will put an even bigger emphasis on knowing your audience.
On being clever with your targeting and optimizing options.
On affiliate tracking of all your costs and profits.
On more testing and smart traffic redistribution.
As affiliate marketing evolves, advanced tracking is more essential than ever. Using a comprehensive affiliate tracker like Voluum helps you monitor performance, optimize campaigns, and stay competitive in a rapidly changing landscape.
Frequently Asked Questions
Question: Is affiliate marketing dead in 2023?
Affiliate marketing is not dead. The industry is growing, with spending and revenue still rising. However, it is becoming more competitive, regulated, and professionalized, requiring new strategies and tools for success.
Question: What are the biggest challenges for affiliate marketers today?
Key challenges include increased competition, more selective affiliate programs, higher costs for paid traffic, SEO changes that reduce organic reach, and a shift toward brand-focused campaigns.
Question: How can affiliate marketers succeed in the new landscape?
Success now requires strong audience targeting, continuous testing and optimization, advanced tracking tools like Voluum, and a focus on building trust and delivering genuine value to both brands and customers.
Question: How did COVID-19 affect affiliate marketing?
The pandemic increased online activity and lowered CPC in some niches, creating new opportunities. However, affiliates needed to adapt quickly, as the effectiveness of traditional tactics changed.
Question: Is affiliate marketing still worth starting in 2023?
Yes, affiliate marketing remains a viable and profitable business, especially for those willing to invest in learning, adapt to market shifts, and use the right tracking and optimization tools.
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