The affiliate marketing industry is booming. Globally, the market currently generates around $17 billion per year, and the US is by far the largest market, responsible for almost 50 percent of global sales. Much is currently made of the transformative influence of AI, but this is one area in which there is still no substitute for the human touch and the sector is predicted to grow at a compound rate of 10 percent per year over the next three years.
Personalized gift affiliates among the fastest growing niches
Evolving buyer habits have placed the personalized gift niche among the best affiliate programs. Two out of three Americans do at least some of their shopping online and affiliate marketing is responsible for 16 percent of web sales in the US. This makes the personalized gift niche highly attractive to US affiliate marketers.
Gifts are a niche that appeals to every shopper. While niches like beauty products, games or pet products have very specific target demographics, every one of us buys gifts from time to time, for Thanksgiving, Christmas, Mother’s Day and special events like birthdays, graduations or retirement.
One of the perceived downsides to shopping online is that it does not always have the personal touch associated with a gift that is chosen by hand in a physical store. But specialist online vendors are addressing this by offering highly tailored gifts ranging from keychains to personalized wooden signs that are handmade and can be personalized with a name, monogram or short message for the recipient.
Getting social is key to success for affiliates
Almost 80 percent of US adults use social media, so it should come as no surprise that this is a popular tool for American affiliate marketers. Facebook and Instagram are the most popular channels, and both are used by the majority of affiliate marketers. Pinterest, YouTube and X complete the top five.
The average affiliate who uses social media uses three different platforms. Building a significant number of followers is, of course, important, but that doesn’t mean you need hundreds of thousands of followers. In fact, more than 85 percent of affiliate markets have fewer than 10,000 followers on their social media platforms.
Meeting the needs of buyers
It is easy to get caught up in the tech side of affiliate marketing, but for niches like gifts in particular, it is the human factor that counts for most. According to Lucasgift, the key to being a successful affiliate for a gift site is bound up with one of the oldest and most basic marketing tenets of all: understanding the needs of the buyer.
This is borne out by statistics collated by AuthorityHacker showing that almost nine out of ten online shoppers start the buying process by researching products and the same proportion have been inspired to make a purchase by an online influencer. The message is clear: online shoppers crave help and advice in their purchasing decisions. Clearly, the less familiar they are with what they are buying, the more advice they will want.
Again, this explains why the personal gift niche is trending as much as it is in the affiliate world. It is natural that purchasers will have a greater need for advice when buying a special gift such as a custom leather wallet for someone else than when purchasing something for themselves. An effective affiliate can fulfil the combined role of trusted friend and product expert by delivering accessible and engaging content that answers the questions to which shoppers need answers.
Looking to the future of affiliate marketing in the US
Research by Demandsage found that more than eight out of ten US brands use affiliate marketing, a number that is increasing year on year. Favorable reviews by a trusted affiliate are tantamount to a personal recommendation, and brands are getting wise to how powerful that can be. Affiliate marketing allows them to win credibility in an age when buyers are increasingly cynical towards conventional advertising media such as pop up ads. All this will drive continued growth in America’s affiliate marketing sector.
To ride this wave, affiliates will need to understand the human drivers already mentioned. However, they will also need to combine this with smart use of emerging technology. For example, AI can be a powerful tool for better data-driven decisions and resource allocation.