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  1. #1
    Nwtwork Rep maranda's Avatar
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    Effect of US Economy on Affiliate Marketing
    Just read this article from eMarketer discussing how the US economy may affect e-commerce:

    When asked how their discretionary e-commerce spending would change in 2008 versus 2007, 33% plan to purchase less online, while only 12% will purchase more and 55% will purchase the same amount.

    On the other hand, 21% of respondents said they would increase their online shopping due to a recession or concerns about the economy; 65% said they would not.
    The full article can be read here .

    Has anyone here noticed any difference in traffic or click-to-sale conversions on their site? Do you think the US economy will have any impact on your campaigns?
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  2. #2
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    I think it'll be alright. One thing to keep in mind, 5% off all retail sales are online, still 95% offline. So much room for growth. Plus the one thing I like to remind myself of, are the kids growing up today very comfortable with computers and the internet, sooner or later they will have credit cards in their hands.

    "Despite the bum economy, Internet retail sales will rise 16.6 % in 2008 to $204 billion, about the same rate of growth as in 2007, according to the latest annual study by Forrester Research"

    http://www.forbes.com/business/2008/...408retail.html

  3. #3
    Nwtwork Rep maranda's Avatar
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    I agree with you. There's such a wide audience out there of users from different backgrounds and of different ages who will likely continue to look online for interesting offers. US economy likely won't have too much of an impact.

    There's also other markets to explore like Europe, Asia, Africa and the Middle East. Lots more potential out there. Are you looking at any other countries for traffic?
    Last edited by maranda; April 9th, 2008 at 02:33 PM.
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  4. #4
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    Quote Originally Posted by Trust
    One thing to keep in mind, 5% off all retail sales are online, still 95% offline. So much room for growth.
    Thanks for reminding me about that - those figures always blow my mind. Yes, there is so much room for growth. I think affiliate marketing will be OK.

  5. #5
    The Seal of Aproval rematt's Avatar
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    As gas prices get higher more and more people willing start to shop online as it will become an even cheaper alternative. Another factor is that Cities, States and Counties around the country are starting to raise sales taxes to compensate for their higher fuel expenses. Cook county Illinois will have the highest sales tax in the country starting this fall. Find a deal on shipping and you can save a ton.

    -rematt
    "I know that you believe you understand what you think I said, but I'm not sure you realize that what you heard is not what I meant." - Richard Nixon

  6. #6
    ABW Ambassador
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    Remember that UPS rates MUST go up BUT online sales will still go UP.

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