Are companies pulling back on affiliate marketing?

Gartner  (a research and advisory company) asked clients how they expect their marketing budgets will change with this COVID-19 pandemic.

The results suggest that marketing leaders must make difficult and rapid decisions. Almost two-thirds of the marketing leaders expect to face moderate or significant budget cuts in 2020.

Walmart suspended influencer affiliate programs with social commerce site MagicLinks and e-commerce giant Rakuten.

Walmart isn't alone in cutting affiliate programs, per the Business Insider report, which notes that retailers Macy's, Patagonia and Victoria's Secret have taken similar steps.

The impact of the coronavirus on affiliate marketing also depends on your chosen industry.

Compared to an e-commerce business, for example, affiliates have more flexibility to switch to products that are in high demand at the moment.

Obviously, this doesn’t apply in every case since you also need to be specialized in the niche where you operate. Switching to a completely new product category takes time and makes sense only if you can expect long-term benefits.

When it comes to choosing profitable niches right now, bear in mind that using the word “coronavirus” or “COVID” as part of your offer is forbidden in most traffic channels.

Publishers could take a hit if the pullback on affiliate marketing continues.

All the best,

Luc

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