Bad Economy On AF

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afftm1

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Oct 18, 2008
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Do you believe that the bad economy will have a major effect on affiliate marketing?
 


No, I think people would appreciate buying things at the click of a button as opposed to burning gas getting to stores. It might translate into more dough for us :). Though, I could be wrong.
 
I think so. Advertising is usually the first to take the hit. I've been a webmaster since 2000. I used to work for a Northern California-based VC firm before I became a webmaster. I've seen my share of the original Dot Bust carnage of the early 2000s.

With that said, it depends on which market niche you're focused on. Adult is pretty much recession-proof. As for other segments, it depends.
 
I think so. Advertising is usually the first to take the hit.
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ah madison square advertising thinking at its best. of course advertising takes a hit. that is because most advertising is based on the brand awareness strategy. ie "get the brand out there and we'll make sales". of course in the real world this isn't the case. just look at myspace advertising. doesn't matter how flashy/pretty/clever i make an ad it WILL be beat out CTR and CR wise by a silly ad written by a two year old but with the correct type.

why?

because we work in direct marketing not advertising.

so no, sales will continue to increase and the savvy amongst us will reap huge rewards as the market copes with the new economic climate and the "advertisers" cut back on costs lowering the competition for direct marketers.
 
itchy said:
ah madison square advertising thinking at its best. of course advertising takes a hit. that is because most advertising is based on the brand awareness strategy. ie "get the brand out there and we'll make sales". of course in the real world this isn't the case. just look at myspace advertising. doesn't matter how flashy/pretty/clever i make an ad it WILL be beat out CTR and CR wise by a silly ad written by a two year old but with the correct type.

why?

because we work in direct marketing not advertising.

so no, sales will continue to increase and the savvy amongst us will reap huge rewards as the market copes with the new economic climate and the "advertisers" cut back on costs lowering the competition for direct marketers.
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dead on...
 
Of course what most of you are failing to realize is that people and consumer spending fuel the economy, not major corporations.

If consumer spending is down you can be sure this isn't just going to affect brick and mortar businesses, it will affect us too.

However, how much that affects us could probably be very little. Considering we all are building our businesses more and more as each day goes on, our earnings will improve over time... not go down because of the economy.

In summary: Yes of course it affects us. Should you worry? No, not really, unless there was another great depression.
 
I think niches like Travel , forex , stock, luxury items etc are hit but credit , make money online , mortgage , CC , education and career etc niches are surged by bad economy.
 
Well in economic downturns like these it's only natural for people to tighten their belts. Having said that, there are always opportunities out there for us to take advantage of. Like what has already been pointed out, we should see an increase in conversion rates for niches like credit and mortgages.
 
Adapt. I have a buddy that made a shitload of money doing home loans. Then the market took a shit, now he makes a shit load of money doing loan modifications for people that are trying to avoid foreclosure. With a great economy comes opportunities, and with a bad economy comes opportunities in much different places.
 
Agree with Itchy and NickyCakes. Yeah the highstreet is taking a hammering, but online is doing better than ever in most areas; so I would anticipate affiliate marketing will continue to grow.
 
Online Ad Spending Will Keep Growing
Online Ad Spending Will Keep Growing - eMarketer

Marketers should rightly ask, “What is behind the bullish projections for online ad spending, especially when most traditional media are taking the financial equivalent of body blows?” The seven reasons are as follows:

  1. The Internet is inherently more measurable and accountable than are traditional channels.
  2. The Internet allows for better, more-granular targeting than do other forms of media. That reduces media waste and can save marketing dollars.
  3. The Internet is interactive, thereby allowing for a higher degree of engagement with consumer and business prospects and customers.
  4. Particularly among younger consumers, the Internet is accounting for a larger and larger share of total media time; numerous studies demonstrate that teens, millennials and other younger cohorts are spending more time online per week than they are watching television.
  5. The Internet plays into the consumer-in-control movement and therefore provides new opportunities for marketers to be a part of their conversations about interests, attitudes, shopping plans and even brands.
  6. New Web 2.0 phenomena such as blogs, social networks and Twitter provide marketers with the potential to gain rich insights into consumer behavior and attitudes (the Internet is like a perpetual focus group on steroids).
  7. The Internet, unlike any other medium or channel, allows marketers to reach prospects throughout the entire consumer buying cycle, from initial awareness through pre-information-gathering to sales and post-sale feedback and support.
Click to expand...

Taken from emarketer.com - their newsletter has tons of info like this
 
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