Affiliate marketing is on the rise in the U.S. and AI could take it even further
The affiliate marketing industry in the U.S. is experiencing significant growth. According to a recent study conducted by the Performance Marketing Association (PMA), spending in the sector rose to $13.62 billion in 2024.
This means the sector has grown by 49.8% in three years, at a compound annual growth rate (CAGR) of 14.42%.
As more and more brands recognize the potential of affiliate marketing, the role of this sector in digital advertising increases. Its performance-based structure makes it ideal for both brands and content creators looking for new opportunities in the market.
Companies across all industries are now working with affiliate marketers as they seek ways to reach their target audiences.
For years, fashion has been a staple in affiliate marketing, with influencers and content creators promoting clothes, accessories, and beauty products across blogs and social media. As sustainable and eco-friendly products gain more popularity, green brands are launching affiliate programs of their own.
The online casino industry also has some of the most prominent affiliate markets. Within that context, different websites are joining affiliate communities and networks to increase their traffic. The likes of Ghost Partners and similar platforms create user-friendly guides, overviews, and general content about iGaming to generate commission revenue from every purchase carried out through their recommendations. In turn, the iGaming websites that publish on such platforms get more visitors, while players collect more valuable information about available playing options.
With more and more people entering affiliate marketing, the industry is becoming more competitive and professionalized.
Commenting on the numbers from 2024, Matt Gilbert, CEO of Partnerize, said that they look impressive but added that there’s a lot more work to be done. His stance is that it’s now time to take the sector to the next level and drive it to $100 billion.
Gilbert said that this can be done not only through more partnerships and better strategies, but also through embracing new technologies, artificial intelligence (AI) in particular.
AI is already impacting all industries by streamlining their day-to-day operations and handling data for them. In Pennsylvania, the state government is using ChatPGT to speed up the hiring process, cutting the average time from 90 to 58 days.
Sure, the affiliate marketing sector can use the tech in similar ways, but there’s even more opportunity on the horizon.
Gilbert said that major AI platforms, like ChatGPT, could soon adopt affiliate marketing as their primary revenue model. The talk about AI monetization has been circling for quite some time, and if they really go in that direction, it could redefine the entire affiliate marketing industry.
Even Sam Altman, CEO of OpenAI, has said that the company would prefer to monetize through an affiliate model, rather than traditional advertising. So, if a person runs a deep search using ChatGPT and buys something through the results, the company would charge an affiliate fee.
Should this become a standard for all large language models (LLMs), it could open the door to a whole new world of growth for the affiliate marketing industry.
Gilbert said that one of the key reasons AI companies are looking in this direction is because of affiliate marketing’s ability to combine relevance and monetization without disrupting the user experience, something that traditional advertising has long struggled to achieve.
He added that the industry isn’t just imagining this new era, but it’s already creating it. With the right tools, partnerships, and mindset, he believes the affiliate marketing sector is poised for success.