Affiliate Marketing: Market Size and Total Addressable Market

The global market size of the affiliate marketing amounted to $16 billion in 2016 and its calculated current global revenue from all participating brands is over $25 billion in 2025. The calculated total addressable market (TAM) for an affiliate marketing platform targeting the global market is a $3 billion annual revenue considering 100% market share.

About this report: From our market research of the affiliate marketing industry, you will be able to understand the current market value or size and its annual growth trend. You will also be able to understand its total potential market, total addressable market, serviceable available market and serviceable obtainable market and potential annual revenues.

(What you see below is just part of the analysis and some figures here were purposely hidden; this analysis can be purchased at a very reasonable price; you can see the checkout button at the end of this article)

Affiliate Marketing Industry Market Research Requirements

  • To provide the global market size of affiliate marketing, including its total addressable market, serviceable available market and serviceable obtainable market.

What is affiliate marketing?

Affiliate marketing is the process by which an affiliate earns a commission for marketing another person’s or company’s products. 

Quote:

When you sell anything for anyone else and you receive a commission for it, you’re marketing as an affiliate. You’re not just a salesperson working for that company. You’re independent and on your own. There are no thresholds that need to be met. But the more you sell, the more you earn.

The beauty of affiliate marketing is that there are no limitations and you can effectively earn money by marketing for many companies at one time. This offers a low-friction-to-market opportunity because you don’t need to create your own products or services to earn money selling anything in this format.

– The Definitive Guide To Affiliate Marketing, Forbes article

Affiliate Marketing Platform serves as a connection between companies and affiliate fans who promote the product they love. It provides its clients with the necessary accessible tools such as affiliate link, landing page, Facebook/Instagram ads, email copy, banners, and video testimonials for effective promotion of a product. 

Affiliate marketing is a subset of performance-based marketing which pays Internet publishers (affiliates) to promote a particular product or service, paying a commission for each lead or sale generated by the affiliate website. 

Defining Your Target Audience

To penetrate the market, the target audience or target market for an affiliate marketing platform are all companies or product brands who want to increase revenues and gain more customers to buy or purchase their products or services. These brands are allocating budgets for affiliate marketing solutions. The scope is worldwide.

Before we deep dive into the TAM, SAM and SOM analysis, let us first look into the market trends or how the general market industry for affiliate marketing is doing. 

Affiliate marketing market size

According to a comprehensive report which analyses the global affiliate marketing industry, the global size of this market in FY2016 was at $13 billion. Currently, this market is worth $25 billion. The market is anticipated to grow at a CAGR of –% until 2031. The affiliate marketing platform market is gaining popularity among small brands and publishers because it is easy to operate and involves a small investment. 

[Year-by-year affiliate marketing size globally]

2016: $13 billion

2025: $25 billion

2026: $– billion

2027: $– billion

2028: $– billion

2029: $– billion

2030: $– billion

2031: $– billion

Annual market size of the affiliate marketing sector globally 2016, 2022 to 2032

In the United States, according to a 2016 report by market research firm Forrester, the country’s affiliate industry is set to grow by around 10.1% on average per year and assessed the current state of the affiliate industry in the US in 2016 and found that advertisers were spending around $5 billion on affiliate partnerships which would posed to be responsible for almost $7 billion ($6.815 billion) in fees and publisher commissions by 2020. 

Accordingly, more than 80% of advertisers and 84% of publishers revealed they either run an affiliate program or use it regularly to monetize their content. 

Target audience/market statistics, data and calculations

A brand is a name and/or a symbol that uniquely identifies a seller’s goods or services in the market. Nielsen Media Research lists more than — brands worldwide in more than 2,000 product categories. Brands enable customers rapidly to recognize the makers of goods or providers of services. 

  • According to statistics, –% of companies are active or have online presence.
  • It’s estimated that –% of brands have affiliate programs.

Total Addressable Market (TAM)

As per above data, the total addressable market or the potential total users for affiliate marketing platforms are all brands as every brand’s goal is to increase revenues, get more sales and increase visibility to all their potential customers.

BrandsTotal number globally
Total number of brands worldwide that may utilize affiliate marketing platform

Average spending for affiliate marketing

Companies have allocated –% of all marketing budgets to affiliate marketing. On average, from analysis of various sectors worldwide, about –% of each company’s revenue is budgeted for marketing purposes. An average SME company generates a median revenue of $– per year. We will assume –% of the average revenue will go to a platform.

Average affiliate marketing spending per brand

= $–

Possible TAM Value and potential revenues assuming 100% market penetration of the target market

TAM value assuming 100% market penetration of the target market

= Total possible brands that could use affiliate marketing * average affiliate marketing spending * platforms commission fee

= $– billion

Serviceable Available Market (SAM)

The serviceable available market’s target market for an affiliate marketing platform are brands who are already actively utilizing online presence and solutions to engage with their potential customers. They are the brands that most likely will readily adopt and utilize affiliate marketing platforms’ solutions. From the above statistics, we will use the 64% percentage share.

SAM potential users assuming 100% of the specific target market

= (provided in the report)

Possible SAM Value and potential revenues assuming 100% market penetration of the specifc target market

SAM value assuming 100% market penetration of the target market

= SAM potential users * average affiliate marketing spending * platforms commission fee

= $– billion

Serviceable Obtainable Market (SOM)

The serviceable obtainable market’s target market for an affiliate marketing platform are brands who are already actively utilizing online presence and solutions to engage with their potential customers and even have their own affiliate marketing budget. From the above statistics, we will use the –% percentage share

SOM potential users assuming 100% target audience penetration globally

= (data is provided in the report)

Possible SOM Value and potential revenues

SOM value assuming 100% market penetration of the specific target market

= $– billion

SUMMARY (TAM, SAM and SOM)

The above estimated values for TAM, SAM and SOM are based on 100% market share at full market or target audience penetration. It is important to note that there are competitors that will be offering the same products and services that will race for a higher market share. Assuming that the company will aim for 5% market share based on the SOM target audience, then the potential revenue will be $– million.

Potential revenue at 5% market share

= SOM potential revenue * 5%

= $– million

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market analysis for total addressable market bottom up method

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SOURCES AND REFERENCES

  1. Be a Big Fan Pro
  2. 20+ Best Affiliate Marketing Platforms and Networks of 2020 – Which is the Right One for You?
  3. https://s3.amazonaws.com/docs.awin.com/marketing/US/The+Awin+Report+2017-2018+US.pdf
  4. 2019 Affiliate Marketing Market Size
  5. Affiliate Marketing Industry to Grow to $6.8 Billion Over Next Five Years 
  6. SEMrush Market Share and Competitor Report | Compare to SEMrush, Yoast SEO, All in One SEO Pack
  7. SEMRush to hit $80m ARR This Year, Here’s How
  8. Success Stories
  9. SEMrush
  10. SEMrush Affiliate Program question – Contact SEMrush

At Mhojhos Research, we deliver outstanding market report results across many industries. Market research is key to a new business becoming a profitable entity. It anticipates and minimizes risk, identifies potential customers and helps ensure success.

Top Affiliate Marketing Companies

Below are affiliate companies that offer top paying affiliate programs and best affiliate programs for beginners.

1. eBay Partner Network

The eBay Partner Network has been around for a long time. And the commission rates are up to 70% of the auction fees. But the auction template itself might turn small businesses people away.

2. Jet

This affiliate marketing program sells everything including groceries. And the commission rate is 2.5%.  Jet offers free returns and free shipments over $35. So it may serve smaller food retailers well.

3. Amazon Associates

Amazon Associates offers an overwhelming number of products.  The fixed standard program fee stands at 10% for women’s fashions. And that rate represents the highest. The program makes over 1 million products available. So this make the Amazon affiliate program a possibble choice for lots of small businesses.

4. Gearbest

Gearbest offers Chinese electronics in its store. And joining their affiliate program costs nothing.

5. GoDaddy

Web marketers looking to make extra should pay attention here. Because GoDaddy offers a 40% commission. And the service remains popular with Web designers.

6. HostGator

HostGator offers big time web hosting with a large affiliate opportunity. And you can earn $125 per signup.

7. ShareASale

You’ll find over 1000 exclusive merchants on ShareASale. The company also enjoys a good reputation for paying commissions on a regular basis.

8. ClickBank

These folks specialize in delivering lifestyle products worldwide with a team of digital marketing associates. And the program effectively teams the best products with digital marketers reaching their target audience.

9. Rakuten

Rakuten offers another opportunity for businesses seeking to drive  customers their way. Because the company offers commissions in the form of cash back to customers who buy from you.

10. CJ Affiliate

CJ Affiliate maintains 15 offices worldwide. And the company enjoys relationships with some major brands. Partner with big names like GoPro to earn commissions for your small marketing business in the digital space.

11. Wide Markets

If you’re an online business looking to get involved with an ecommerce specific affiliate marketing program. Wide Markets is the one for you.  As a publisher, you can get access to budgets from 11 thousand advertisers.

12. CPAmatica

CPAmatica is an affiliate network based in the Ukraine. They offer a variety of payment methods that includes Paxum and Payoneer.

13. Commission Factory

Commission Factory boasts  “little to no barrier to entry.” And the company offers an ever expanding user base. Their software works in real time to show you your stats.

Skimlinks has a great selection of retail merchants and offers  a 25% commission percentage. The platform offers ease of use and regular payments. But some judge its dashboard mediocre.

15. Avangate

This cloud based affiliate network services over 180 countries.  Avangate was built to tackle items like subscription billing and global payments.

16. FlexOffers

FlexOffers provides 20 million products that cover both digital and physical goods. Commission rates vary by the vendor but there are some big brands. There’s an easy to understand contract.

17. MoreNiche

If having lots of skin in the affiliate marketing game is what you’re looking for, MoreNiche has been in the business since 1999. Bi weekly payments and live earning stats are available.

18. MunchEye

You can use MunchEye to advertise and/or promote launches. Featured launches costs $200 per.

19. Tradedoubler

If volume in active publishers ( the small business that actually place affiliate links on their websites) is what you ‘re looking for consider this. Tradedoubler has 180,000 active publishers and 20 years of experience.

20. JVZoo

This is an award winning affiliate marketing company. The JVZoo website says they’ve been recognized by Inc.5000 as one of the fastest growing companies in America. Small business can boost their traffic by advertising here too.

21. REI

REI offers a wide variety of trusted gear in the outdoor space. You’ll get access to a loyal customer base here of over 5 million .

22. BodyBuilding.com

There’s a lot to choose from in the Health and Fitness vertical. BodyBuilding.com pays 5% for returning customers and 15% for new ones. They’re also a trusted source in the industry.

23. iAffiliates

iAffiliates is a casino affiliate program, good for small businesses that want to do business with the likes of Casino.com. Their affiliate deals are customized with bi-monthly payments.

24. VetShop

This site offers animal supplements. VetShop offers customer service seven days a week and their commissions are 10 %.

25. CornerStorkBabyGifts

Baby gifts for sale at CornerStorkBabyGifts so you cant go wrong signing up to be an affiliate. Good commissions at 12% is another incentive.

Affiliate Marketing Platform Market Size

The affiliate marketing platform market is projected to grow significantly in the coming years. Here are some key insights into the market size and growth forecast from different sources:

At Mhojhos Research, we deliver outstanding market report results across many industries. Market research is key to a new business becoming a profitable entity. It anticipates and minimizes risk, identifies potential customers and helps ensure success.

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