As the global business news informs, affiliate marketing is one of the most popular and profitable industries. This marketing is known for high return on investment rates (ROIs). According to the Forrester Research company, more than 80% of all brands and 84% of publishers use affiliate marketing. Besides, 15% of total digital media revenue and 16% of global eCommerce sales belong to affiliate marketing.
At the same time, the competition in the affiliate niche is fierce. That is why it is important to pick the right niche. To simplify the process, we’ve selected the seven best niches for affiliate marketers in 2022.
What is affiliate marketing?
Affiliate marketing is a type of marketing activity where a publisher promotes another company’s products or services for a commission.
At its core, affiliate marketing is based on the relationship between:
- Advertiser, or merchant, who pays an affiliate for promotion of their products and services;
- Publisher (or an affiliate), who earns commission by driving traffic to merchant’s platform, generating conversions, leads, or sales;
- Consumer, who is a target customer of an affiliate program.
Tips for choosing the best niche for an affiliate marketer
Affiliate marketing can be conducted almost in every sector of the economy. For better results, however, an affiliate should focus on one or two niches. By targeting a more specific audience, marketers can increase conversions, customer retention, and, as a result, increase their profits.
Before picking a suitable affiliate niche, experts advise to:
- Consider your expertise and relevant experience;
- Asses monetization potential;
- Identify competitors and search volume;
- Learn about available traffic sources;
- Conduct keyword research;
- Determine deficiencies of market competitors;
- Establish your unique selling point.
Top-seven affiliate niches in 2024
Technology
One of the most lucrative niches for affiliate marketing is the technology market. The software market alone is expected to generate $626.5 billion in revenue in 2022. Statista reports that by2026, it is forecasted to reach $824.8 billion in 2026.
The most popular products in this niche are:
- Enterprise software;
- Mobile technologies;
- Online streaming;
- Video games;
- Business software, etc.
The global pandemic only boosted the development of the tech sector. With an increasingly high number of people working from home, the demand for hardware and software has spiked as well.
Gaming
According to the NewZoo forecast, in 2021, the global gaming market revenue amounted to $175.8 billion, with 2.9 billion players across the globe. These players purchase not only games but also in-game products. Overall, the gaming market involves games on:
- PCs ($35.9 billion in 2021);
- Consoles ($49.2 billion in 2021);
- Mobile devices ($90.6 billion in 2021).
And mobile gaming is swiftly climbing to the top ranks. So, it is not surprising that many affiliates want to enter the gaming niche Twitch and YouTube streamers, other gaming influencers on Instagram, TikTok, etc. often sign affiliate contracts with gaming brands.
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Health and wellness
This health and wellness industry covers all activities related to physical and mental wellbeing, including:
- Nutrition and weight loss;
- Healthy eating
- Yoga and exercise products and services;
- Meditation;
- Spa facilities;
- Workplace and tourism wellness.
The global COVID-19 pandemic only increased the popularity of this sector. According to Research and Markers, in 2020, the global health and wellness market was worth $3.31 billion. By 2026, it is expected to reach $4.24 billion, with a CAGR of 4.1% between 2021 and 2026.
Top-five market players are:
- Fitness First;
- Beiersdorf UK;
- Procter & Gamble;
- Unilever;
- David Lloyd.
Affiliate marketers that want to enter this niche should consider the fact that most wellness products target certain demographics. The factors of age and gender play a huge role in targeting. Concerns and needs of the audience are constantly evolving, so marketers have to stay on top of the industry changes.
As the competition in this niche is fierce, novices in affiliate marketing are advised to focus on narrower categories, such as yoga, weight loss, or fitness.
Finance
The financial sector covers dozens of different micro-niches, such as banking., peer-to-peer payments, investment, stock trading, insurance, credit cards, loans, etc. GlobeNewswire reports that in 2020, the financial services market reached $20.4 trillion and was forecasted to grow to $22.5 trillion.
The fintech sector is especially attractive to the affiliates, as, by June 2021, investments in this market amounted to $8.7 billion. The increasing popularity of cryptocurrencies and blockchain technology also contributes to market growth.
Some affiliates don’t enter this niche because they assume the competition is too high. However, hundreds of companies in the financial sector launch affiliate programs to promote their services.
When targeting financial campaigns, affiliate marketers should consider age and income level. Factors like financial security and opportunity for growth are also important.
Beauty and cosmetics
This highly competitive niche is very popular among both influencers and video bloggers and web-based affiliates. The beauty and personal care market, however, is constantly growing and expanding. According to the Global Beauty Industry Statistics report, the market value increased from $483 billion in 2020 to $511 billion in 2021.
The study also suggests that more and more customers in the sector are willing to pay more for higher-quality products. Besides, affiliates can choose one of the dozens of sub-niches, such as:
- Skincare;
- Nail care;
- Haircare;
- Male cosmetics, etc.
Dating
The dating sector includes online matchmaking services, like Tinder, Bumble, and Zoosk, offline dating agencies, speed dating events, etc. Statista estimates that in 2022, the revenue in online dating marketing will reach $3.68 billion with an annual growth rate of 6.25%.
The remote dating industry has a great number of available services and one of the largest numbers of users. The Statista study shows that at least 24% of the global population have used online dating platforms at least once.
In 2021, Tinder, Badoo, and Bumble were the leading applications in the global dating market.
Gambling
We couldn’t have finished this list without mentioning the gambling industry. According to the Global Gaming Report by Research and Markets, in the past year, the market value has grown from $465.76 billion in 2020 to $516.03 billion in 2021 at a CAGR of 10.8%. The global COVID-19 pandemic has only boosted demand for online gambling services, creating favorable conditions for the growth of affiliate marketing. In the near future, mobile gambling is set to dominate the industry, creating even more opportunities for affiliates.
As for the micro-niches, sports betting has attracted a lot of attention after its legalization in the US in 2018. EURO 2020 and Olympic Games have also increased the popularity of the bookmaking sector.
Hopefully, this list of the most prominent affiliate markets will be useful for marketers, influencers, bloggers, streamers, and other professionals who want to enter the market.
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