The State of Affiliate Marketing in 2012

by Jason Acidre on February 3, 2012 · 19 comments · Search


A few weeks ago, Google rolled out Search Plus your World on US and UK search result pages, a new format that merges social and personalized search results for logged in users, which also includes relevant Google+ pages in the results.

This is clearly another attempt from Google to put affiliate marketers out of business, seeing that this major change in search engine optimization is more focused on their users’ social activity. Affiliate marketing has been an industry for over a decade (since 1994), serving as a marketing tool for ecommerce sites, helping them get more sales and is projected to help the ecommerce industry reach almost $300 billion in sales in 2015.

However, with all the changes that Google is continuously implementing on their search engine algorithms such as last years’ Google Panda update, Freshness update as well as the use of social signals in determining quality and popular content over the web, this only entails that affiliate marketers must also step up to keep up with imminent changes that have always been a part of this industry and become savvier in terms of how they use multiple marketing platforms to reach their target audience.

I recently had the chance to ask some of the most renowned thought-leaders in the field of Search and affiliate marketing about their views on the current and future state of the affiliate industry, particularly when it comes to affiliate sites’ search visibility.

Simon Slade, CEO of Affilorama, relates that:

“Since we launched Affilorama in 2006, there have been many changes in affiliate marketing but many core principles remain the same and it’s something we try and educate our members about.

Never rely solely on one form of traffic. If you are relying single handedly on Google to drive you visitors, you are in huge danger as a lot of people found out with Vince, May Day and more recently Panda. We strongly encourage members to diversify their traffic sources whether it is social, paid or direct forms of generation. Not only is it smart risk management, but it also presents other more viral opportunities as well.

The other piece of advice I would have is to think outside the square and try to offer a unique solution that solves your users’ problems. Don’t try and copy what everyone else is doing, be creative and come up with a unique way to give your customers what they need. Think software, mobile, gaming – these are different platforms that are open for affiliates to monetize.

The web is moving very fast and you need to move with the times.”

According to Rand Fishkin, Founder and CEO of SEOmoz:

“I think it’s a great topic. Sadly, for a lot of affiliate marketers, I think Google’s intent is to put them out of business, or at least make things much tougher for them in search/SEO. If I were doing any form of affiliate stuff, I’d be thinking extremely hard about how to build a unique value proposition, a recognizable, memorable, beloved brand and earn enough press and awareness, particularly in the tech community, so as to limit the potential damage of future Google updates targeted as eliminating these types of operators. I’d also try to diversify my traffic to get no more than 40% of visits from search (which likely means investing in a lot of content marketing, social media, blogs, etc).”

Wil Reynolds, Founder and CEO of SEER Interactive, shares:

“Google is learning more and more to things that favor people who look and act like brands. So my advice for affiliates will be “to look more like a brand” – so for instance big brands didn’t get hit by Panda because they don’t usually create a bunch of garbage pages on their sites.  Google+ is going to impact things, so if that is the case who gets a lot of people to add them to circles? Brands do, thought leaders do. Then go look at their sites, how many have like 4-5 ads above the fold? Not many.”

There is a unified thought based from what these experts have shared. Apparently, affiliate marketing this year would be more about building affiliate brands, rather than just building an affiliate website. Shaun Anderson recently published a guide on how to create a real Google-friendly website in 2012, which also depicts important phases that can be implemented when creating an affiliate site.

Create a website that Google will certainly rank, by simply understanding how and why they rank pages from their indices. And don’t just focus on a single channel for traffic generation, because SEO, social, content marketing and paid methodologies are all just a part of a whole online marketing strategy.

Affiliate marketing is still a growing community, and has proven to be a very promising business model for merchants, affiliate networks and affiliates over the years. They’ll just need to educate future practitioners on how they can monetize their efforts and prolong the industry.

Article first published as The State of Affiliate Marketing in 2012 on Technorati by Jason Acidre

If you liked this post, you should subscribe to my feed and follow me on Twitter @jasonacidre.

Jason Acidre

Jason Acidre is Co-Founder and CEO of Xight Interactive, marketing consultant for Affilorama and Traffic Travis, and also the sole author of this SEO blog. You can follow him on Twitter @jasonacidre and on Google+.

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{ 19 comments… read them below or add one }

Albin February 4, 2012 at 12:43 pm

One question I start to wonder about is if the PPC or the affiliate business is the won which will be the biggest in five years. Which will be the easiest to monitize on? What do you think? Affiliate networks or Adsense (or equivalent)?

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Rorry February 6, 2012 at 5:09 pm

As usual, great article and resources Jason. Cheers!

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Bose February 7, 2012 at 4:31 am

Google is making a lot of changes of late, today again the home page PR was dropped and gave more importance to internal pages of worth. I also heard from some one that, a site which contained Adsense and after 1 years the owner added Affiliate ads and Google saliently removed adsense, without informing, is this really true? Thanks !@bose

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Sung February 8, 2012 at 9:50 am

superb post! Keep up the awesome work!

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Neil February 15, 2012 at 1:14 am

This is definitely true. On days when I’m trending well and seeing a lot of visits from reddit, I also see a big spike in my google visitor numbers. Create content that will perform well on mulitple platforms and you’ll have a diverse traffic source as well as a higher chance of getting those all important hits from google.

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Alan February 15, 2012 at 1:22 pm

I don’t think that affiliate marketing is going to become obselete. Affiliate marketing is taking about the retail business. Now you can set up your shop online. So maybe affiliate marketing will change but I don’t think it’s going away for good. The best kinds of traffic to get are free search engine traffic, PPC(if you know how to do it correctly) and social networking traffic.

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Robert March 1, 2012 at 7:46 am

Alan,

I agree strongly with you. The concept of affiliate marketing won’t be going away, but how affiliate marketers do business will certainly change. Social media is going to continue to grow in importance, and Google+ could be absolute huge if Google ever get people to really latch onto it.

I really think the Internet is going to continue to grow into building relationships with other people. Instead of sticking up a page and doing tons of link pyramids/wheels to drive traffic to your site, it’s going to be more so about going out there and developing real relationships with your customers.

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Luke Tetrabyte February 21, 2012 at 8:36 am

Hopefully this won’t make affiliate marketing obsolete, but it will move them to be less spammy in their message to users. although it’s hard that Google keeps changing the rules of the market place, it’s beneficial to not let the market become a stagnant place to do business.

Regards

Luke

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tim February 28, 2012 at 1:30 pm

Definitely a further step by Google toward the social-built SERP. A multifaceted strategy is certainly necessary for anyone to stay on top of the SEO industry.

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Jasmine February 29, 2012 at 10:41 pm

Great article Jason. I’ve already followed you Twitter. Nice to know you

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Haroun @Affiliate Marketing May 22, 2012 at 11:34 am

I like your idea of building an affiliate brand. Being an authority, and a recognisable feature of any business is the key to building a sustainable business

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Tania September 22, 2012 at 10:38 am

Excellent article, I believe affiliate marketing will still be with us in the future but in a different form. I agree Google is shifting their stance to a more brand orientated approach with circles, networks and if Google + really gets adopted in greater numbers things will change again.

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Giuseppe@Sofa Royal January 6, 2013 at 6:56 pm

of course like your web site however you have to check the spelling on quite a few
of your posts. Several of them are rife with spelling
issues and I to find it very bothersome to inform the reality then again I’ll definitely come again again.

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Howie Perks @Pure Leverage April 6, 2013 at 1:13 pm

Hey Kaiser, thanks for the great article! I will be back.

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Gintare April 29, 2013 at 5:26 am

Hi Jason, thank you for nice article, it is always nice to read good articles from you

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Shelly May 6, 2013 at 5:30 am

Great article on affiliate marketing.I got more knowledge about it.It’s true that affiliate marketing would be a very hopeful bussiness over the years.

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Mark Silet May 21, 2013 at 9:41 pm

Good post. If you look at it from the perspective of Google, they have been moving up the food chain for many years now. They want the end brands to be bidding on their keywords as they are able and willing to pay far more than affiliates were or are. Facebook isn’t horribly different. They embraced affiliates long enough to draw interest from the big brands and then they started changing their policies to push out the affiliates.

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shelly J June 22, 2013 at 3:32 am

Hi,
Great Information about affiliate network, i want also start affiliate marketing business and i have good knowledge about SEO ,So i think , it will be helpful for me in this business.
Thanks

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Nana Kofi October 16, 2013 at 3:53 pm

I have no doubts that, affiliate marketing will be the best in the years to come all though Google is try his best to do all that it can. Creating or getting a brand for a company as not been easy as most companies will like to do similar brands with companies who are already making it.
It was not easy when are started I have to do all that i can to convince a company to get their own brand and when you tell them about that, most of them site back and wait for you to come up with an idea how you think their brands should be. It was not easy for me, but thank God i was able to go through and now my clients enjoy what I do most.
So lets not keep up yet…..the future belongs to us!

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