In spite of a decline in online advertising growth, affiliate marketing is growing at a pretty good pace and should continue to increase as more advertisers turn to performance based marketing.

eMarketer expects online advertising in general will increase by 8.9% in 2009. However, Jupiter Research predicts affiliate marketing will grow 13% each year through 2012. The reasons affiliate marketing will grow during an economic downturn seem fairly obvious — however, for a much deeper look check out this in-depth article by Martin-Gill, director of Internet marketing for eBay, Inc.

Why Affiliate Marketers Will Win Big In 2009 — And How They Will Do It “However, marketers must approach affiliate marketing with a clear understanding — like any other worthwhile advertising medium, one can’t simply assign bodies and budget to the program, back away and expect success. Instead, advertisers and affiliates must form highly productive relationships, keep communications open and work hard at making creative and targeting more effective. Look for more programs to pour resources into such efforts this year.

So to those dismayed at the news circulating about traditional advertising channels, take heart — affiliate marketing can open doors even in a recession, as long as the advertiser and affiliate communities work together to engage customers, find efficiencies and drive results, building revenue for all parties.”