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The Covid-19 pandemic has put a significant impact on each industry, shaking up businesses and customer behavior on a larger scale. As all services and operations halted by the virus, small businesses are the ones that are hit hard in the global economy. Even it has deeply hurt the economy whose effects can be seen for the long-term. In this entire scenario, affiliate marketing is one industry where Covid-19 has put a huge pressure.

Despite belonging to digital industries, affiliate marketing has also affected by the outbreak like others. With people sheltering in place, or self-quarantining in their homes, affiliate marketers are facing unprecedented disruptions to their business as affiliate programs are cut and commission rates get slashed. According to a survey report, 74 percent of marketers foresee the coronavirus pandemic will be worse for their businesses than the 2008 financial crisis. Surveyed of nearly 400 media buyers and brands by the Interactive Advertising Bureau, the research reveals that approximately a quarter of all respondents have stopped all advertising for the first and second quarters, while almost 46 have adjusted or plan to adapt spending during the first half of this year.

Impact on Affiliate Sales

The impact of Covid-19 on affiliate marketing is manifold as the industry covers a multiple of niches whose demand can react differently. The buying trends due to the outbreak demonstrate deep changes that may affect Google Ads, affiliate earnings and publisher advertising earnings. Considering reports, Amazon has been gradually minimizing their Google Ads spend.

Businesses that give offers have completely bygone while others have burst out, including health, entertainment, supplements, medical supplies and oxygen and breathing items. Conversely, affiliate offers for gyms, certain types of education and others get down.

Earlier, some digital marketing disciplines were an integral part of affiliate networks, including SEM and SEO and all types of display advertising. Some of these disciplines have evolved into independent advertising channels, while others have been added over the years. Today, affiliate networks offer a various number of traffic sources that would otherwise be difficult for advertisers to access.

While major digital marketing disciplines are tied to leading market leaders, such as search engine marketing on Google and social marketing on Facebook, affiliate marketing is relentlessly changing and creating ways for new and creative methods of how advertisers can reach their target groups.

In the SEO and content affiliate marketing, there has been a considerable decline in organic search traffic. However, it was said that as billions of people confined to their homes this could lead to the growth of organic traffic for most businesses, but it doesn’t translate. It gave rise to the steep downward trend around mid-March. Furthermore, several affiliate marketing companies that have multiple product verticals are seeing products, which were not stapled in the past, now doing quite well amid Covid-19. Thus, as one area of affiliate marketing might be on the declining side, other affiliate services are seeing positive signs.