What You Need To Know
Fintech Author Luigi Wewege on the 2021 Outlook for Ecommerce and Affiliate Industry

The digital advertising industry currently stands at more than $300 billion annually and there is no expectation that this number will stop

Tags: ecommerce
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  • The digital advertising industry has a value of in excess of $300 billion annually.

  • Affiliate marketing is predicted to reach $8.2 billion by 2022.

  • Mobile shopping and social media are two ecommerce trends to look out for

  • Luigi Wewege, digital banking and FinTech, author, and instructor shares what brands should consider in affiliate marketing and ecommerce

The digital advertising industry currently stands at more than $300 billion annually and there is no expectation that this number will stop growing at a significant pace. Those investing in CRM and digital advertising are clearly betting on an industry that is as much in demand during pandemic times as it has been in recent years when the cloud rose to prominence.

Inasmuch as retailers seek to have a diverse omnichannel approach to drive business, they seek to dodge the bullet from ad fraud where billions of dollars is lost in the EU and US alone for accidental and invalid clicks. Hence the rising popularity of “CPA and CPL” models of publisher compensation - something that squares up firmly to Facebook, Outbrain, Linkedin Marketing Services and others.

Known as the “affiliate marketing industry”, it is a fragmented scenario where major publishing houses earn hundreds of thousands monthly, whereas part-time affiliates earn on average $4,000 per month in profitable segments. Those who bet on traditional CPA methods to bypass ad fraud from pay per click ecosystems, typically commit by allocating the necessary capital, including sales professionals with a wealth of experience to augment publishing businesses.

An insider scoop on this booming sector:

Luigi Wewege is no stranger to the ecommerce industry, and his illustrious career has been centered on his aptness in predicting important market trends, especially in the ecommerce, affiliate, and fintech industries. Wewege demonstrates a wide knowledge of many jurisdictions some of which include the: United States, Belize, New Zealand, Panama, the UAE and Bahrain. Currently, Luigi Wewege serves as the Senior Vice President and Head of Private Banking at the award-winning Central America based Caye International Bank. Using his experience in the FinTech industry, he teaches as an instructor at the FinTech School in California which offers online training courses focusing on the latest technological and innovation developments which have a significant impact on the financial services industry.

He also shares what he has learnt through an authoritative FinTech Guide found for sale on Amazon. This is a well-researched book which details the manner in which FinTech businesses are altering the retail banking industry because of a focus on financial innovation based on using state-of-the-art technology.

The future of the global affiliate marketing industry, opportunities

Starting in the 2010s, affiliate marketing has undergone exponential growth and has cemented itself as one of the most well-known ways of not only driving sales, but also of establishing passive income.

Data by Statista show that affiliate marketing in the United States is projected to reach $8.2 billion by 2022. This is three times what it was worth only ten years ago. In 2017 alone, Awin Report suggests that advertisers spent $13 billion in affiliate marketing.

According to Wewege, “there is no doubt that this upward trend will continue, and the affiliate marketing industry will continue to see significant growth especially seeing as online activity has increased dramatically because of the pandemic. The loss of many jobs and the subsequent need for supplemental income has had a significant impact on the affiliate marketing industry and this is unlikely to subside.”

These are the market leaders in affiliate marketing

As requested by Rakuten, a Forrestor report indicates that advertisers and publishers use affiliate marketing to a large extent with 84% of publishers using affiliate marketing and 81% of advertisers doing the same. This has been used with good results as more than 50% of affiliate publishers who were surveyed indicated that affiliate marketing stood in excess of 20% of their annual revenue.

However, interest is growing in different industries. Google Trends indicate that between 2015 and 2020, search interest has increased by more than 200% and this trend speaks to the increase in online shopping instead of visiting brick-and-mortar places of business.

These are the most profitable affiliate segments opening up:

For those publishers switching to CPA, the first question is often: “What is the highest paying affiliate program in terms of cost per referral?”. They ask this in order to identify new profitable segments for content creation, in order to guide future investments and hiring. Below are just a few:

Sitetrail

Sitetrail.com touted as the highest paying program for B2B affiliates. It is well-known and well-established in the digital marketing industry and provides end-to-end management of marketing to services to businesses all around the world. However, their B2B Affiliate Marketing program is one of the most popular aspects of the company and they boast an average commission of around $500 for every sale, with customer lifetime values exceeding $4000.

Shopify

The Shopify program is a challenge for Jeff Bezos, the man who once became the richest in the world thanks to affiliates who raised Amazon from the ground. Shopify is an ecommerce service which has emerged as a very popular and well-known option for many who want to open an online store. As a B2B affiliate who aims to promote Shopify’s services, you’ll be targeting those who have little experience in the ecommerce industry and are unsure of how to really create an online store that will succeed. With the ecommerce industry as it currently is, this is a lucrative opportunity.

Promo

According to 92% of marketers, video is one of the most important aspects of their marketing strategies. However, not all advertisers know how to create videos which are effective, but also cost-effective. As an affiliate, there is the possibility of helping them and earning good money. Promo is a popular and established marketing video creation platform and has a high-demand B2B affiliate marketing program.

Legal Zoom

Who would have thought that the legal industry would tap into affiliate marketing? A plethora of companies like Zen Business, Legal Zoom and others jumped onto Shareasale in order to offer legal and incorporation services that pay affiliates up to a whopping $300 depending on the customer spend.

Other very important trends in ecommerce

Mobile Shopping

Wewege notes that mobile shopping is one of the most significant ecommerce trends emerging - since 2016, sales originating from mobile devices have increased by 15% and Statista predicts that 73% of ecommerce sales will be made from mobile devices by the end of 2021.

According to Wewege, the trust placed in online shopping has never been higher and the prevalence of mobile devices worldwide means that mobile shopping is expected to rise. This trend is especially relevant to Millennials and Gen Z for whom computers, mobile devices, and the internet are a part of daily life.

Social Media

Instagram Checkout and Facebook’s Buy button has led to an increase in social shoppers. Luigi notes that social media has had an impact on how we conduct our daily lives - and this includes how we purchase goods and services. By considering how to best portray themselves on social media platforms, brands can reach consumers through platforms which they use every day.

Final take:

As predicted, 2021 will be a banner year for ecommerce. The rise in AI, effects of the pandemic, coupled with general changes in consumer behaviour all line up to create the perfect moment for this sector, regardless of alarming macro economic trends.



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