Q4 affiliate marketing round-up: Consumer confidence grows despite 2023 cost-of-living crisis

While brands were affected by the cost-of-living crisis and Q4 recession in 2023, our data from the golden quarter reveals a number of positive and unexpected affiliate marketing insights on sector performance during the period. Looking back at 2023, we have the analysis you need to help your brand succeed in the coming year.

Consumer confidence returns for travel and entertainment

2023 saw a resurgence in consumer confidence, evident in the remarkable shifts that took place with spending patterns in certain sectors. Travel, Entertainment, and Outdoor activity products experienced significant upticks, with increases of 51%, 69%, and 43%, respectively. Fashion and Footwear remained steady, while Home & Garden and Health products witnessed substantial growth.

Q4 highlights: Food and wellness take the lead

Despite concerns over the impact of brands distancing themselves from Black Friday sales, Q4 remained a strong sales period for many sectors.

1. Food & Drink: This sector experienced a substantial increase, with food subscriptions, hampers, and both alcoholic and non-alcoholic beverage brands seeing a 100% YoY boost in revenue compared to Q4 2022.

2. Health & Wellness: This sector continued its upward trajectory, registering a significant 67% YoY increase during the winter months. Smoking alternative products were the unexpected star performer throughout 2023, sustaining its momentum with a 51% increase in revenue.

3. Home & Fashion: Home & Garden (+46%), Fashion (+40%), Footwear (+45%), and Gifts & Jewellery (+33%) all witnessed an uplift on the previous quarter, which showcased the enduring appeal of these sectors during the festive season.

4. Entertainment: The Entertainment sector, with theatre playing a big role, saw a remarkable YoY increase of 78% in Q4. This surge can be attributed to the seasonal demand for both gifting and pre-Christmas entertainment for families and friends.

5. Electronics: Surprisingly, Q4 witnessed a downturn in high-ticket items, with a 34% decrease in revenue compared to previous years. This trend was recorded across the Awin network, showing that the cost-of-living crisis potentially dissuaded consumers from indulging in brands’ pricier offerings.

What’s next for affiliate marketing?

In 2023, many businesses were faced with a difficult consumer landscape to navigate due to shifting consumer priorities and economic challenges. The resilience of certain sectors and unexpected downturns in others underscores the need for brands to remain agile and attuned to evolving market trends. To stay on top of 2024’s affiliate marketing trends, download this free e-guide and subscribe to our monthly newsletter.