Saturday, June 15, 2024

EXCLUSIVE: Why India’s Affiliate Industry Will Be Worth Nearly $1 Billion Dollars By 2025

Industry experts at IAMAI’s Affiliate Summit voiced the tremendous productive capacity of India’s affiliate industry. Parul Bhargava, CEO of India’s leading affiliate network, ’vCommision’, highlighted the potential for the space to become worth approximately $835 million in the next four years. With this in mind, why is the affiliate space in India expanding so strongly?

The switch to digital – Whilst many institutions were affected by the pandemic, Bhargava made it clear that the affiliate marketing industry has grown and ‘still contributes about 10% of digital marketing budgets.’ (this was quoted in the press release, idk how you’d like me to hyperlink it) It is clear then that the transition for consumers from physical stores to online shopping accelerated the need for more and more brands to have affiliate programs in order to accelerate their growth. Co-Founder of CashKaro, Rohan Bhargava, supports the importance of this trend, particularly within the last two years, as ‘Indian e-commerce has seen a massive growth in consumer behaviour’ with increased favour towards D2C brands.(again, quoted from press release). Naturally then, affiliate programs have gained heightened traction in the increased emphasis upon digital platforms as a point of consumerism.

The power of influencers – as much as many hate to admit it, social media is probably the most powerful manipulator we all know. Because of this, GenZ, the self proclaimed social media generation, has an inescapable experience from influencer affiliate marketing. With the ability to build huge followings on Instagram, YouTube and, most recently, TikTok, individuals are able to use their social channels to acquire huge revenues for themselves as affiliates of certain products and services. As one begins to build their social empire, the simultaneous effect is a huge boost to the affiliate marketing industry. Many brands recognise this positive outcome, as collaborating with influencers to expand their bandwidth in business results in more customers, more sales opportunities and more profit. ShareASale, Shein and Awin act as some of the biggest affiliate networks that proudly welcome influencers to be affiliates, offering a range of products and services in digital, fashion, and home and lifestyle spaces.

Technological advancements – Ashok Reddy, Founder of GrabOn, (quoted from press release) voiced how the improvements in technology has allowed the affiliate marketing industry to establish itself with greater authority. As the Fintech industry attracts more and more innovative minds each day, the artificial intelligence used in the space evolves at a tremendous rate. In using AI, affiliates are able to use data to further their understanding and predictions about consumer habits. This allows them to formulate important insights into potential areas that customers want to purchase in, boosting the possibility of traction, traffic and, thus, the likelihood of a sale. The result is that mobile first strategy and video-based content marketing will likely see an upward trend for the next few years.

Although not directly linked, it can be argued that greater innovation into India has all helped develop the digital space. Companies like Cashfree have become the leaders of payment innovation in India and by providing full-stack payment solution platforms to over 100,000 growing businesses, Indian companies are able to accept and disburse payment online through a single integration. This all contributes to an environment where people are more aware of how to make money effectively in a global, efficient manner, especially amongst the younger generation who, as TR Ramachandan puts it, are seeking user experiences that are unique and personalized.

Whilst the market has huge potential to grow, this does not come without the threat of fraud. The rising fraudulent activities in the affiliate industry are definitely a cause for concern; whether it be scamming links that seek to rob individuals of valuable personal data, cookie stuffing, click spamming or geomasking, the industry seems to have major challenges to overcome. As aforementioned, technology is improving to combat this, but further measures and a legitimitate regulatory body are definitely needed for the entire ecosystem to function safely.

Although Fintech grows day by day, and the youth get more confident with the transition to it, many still have doubts about the safety and legitimacy of certain affiliate programmes. To successfully proceed, affiliate marketing in India will have to be monitored. One thing that all observers can be sure of though, is that the affiliate marketing space in India is ripe for opportunity, excitement and likely the right place to be for real results in the present and in the near future.

People In This Post

  1. Doha Bank and Mastercard Announce Long-Term Strategic Partnership to Shape Qatar’s Payments Landscape Read more
  2. eBay Launches Venmo as a Payment Option Read more
  3. CRIF Completes Bond Issue With Another US Institutional Investor Read more
  4. Payzli Announces Strategic Leadership Restructuring to Accelerate Growth Read more
  5. Bank for International Settlements and Bank of Canada launch BIS Toronto Innovation Centre Read more
More On