The landscape of affiliate marketing got a notable transformation, with the home improvement vertical emerging as a particularly intriguing and potentially lucrative niche. Home improvement has seamlessly woven into the fabric of contemporary homeownership, becoming an inseparable part of individuals’ pursuit of perfect living spaces. This growing trend has paved the way for a thriving ecosystem within affiliate marketing, capitalizing on the increasing demand for a diverse array of products and services aimed at enhancing homes.Â
As the home improvement sector continues to evolve, at ClickDealer, we have invested substantial time and resources in studying the nuances of the home improvement market. In this article, I will share some trends that are important for understanding this niche.
Impressive Growth and Financial Potential
In 2021, home improvement sales in the United States reached an impressive 538 billion U.S. dollars. What’s even more intriguing is that experts anticipate this figure to skyrocket to over 620 billion U.S. dollars by 2025, showcasing an astonishing growth pattern that’s hard to ignore. These numbers, sourced from data by Statista, offer a resounding testament to the growing popularity and financial potential of the industry.
The Dominance of Major Players
To substantiate this trend further, let’s delve into the dominance of major players in the field. Notably, The Home Depot, a household name in the home improvement sector, emerged as the leading chain in the United States in 2020, raking in sales that surpassed a staggering 130 billion U.S. dollars. Paired with other formidable competitors such as Lowe’s, Tractor Supply, and 84 Lumber, this data showcases the industry’s vibrant and competitive landscape.
Taking a closer look at The Home Depot, its status as the largest home improvement retail store in the United States speaks volumes about the industry’s popularity. Established in Atlanta, Georgia, in 1978, the company has cemented itself as a go-to destination for consumers seeking home improvement solutions. Remarkably, consumers spent around 74.32 U.S. dollars per visit to The Home Depot in 2020, indicating a strong willingness to invest in their home improvement projects. On the other hand, Lowe’s, a direct competitor of The Home Depot, garnered an average spend of approximately 85.67 U.S. dollars per customer visit in the same year.
The global scale of this trend is equally noteworthy. According to Statista, the worldwide home improvement market boasted a value of 763 billion U.S. dollars in 2020. With a compound annual growth rate (CAGR) of over four percent, experts projected the industry’s value to surpass the trillion-dollar mark by 2027.Â
Changing Homeowner Spending Patterns
As per findings from the 2022 U.S. Houzz and Home Study, there was a notable surge in homeowners’ median spending, which saw a 20% increase, rising from $15,000 in 2020 to $18,000 in 2021. This marked a significant departure from the trend observed since 2018, where homeowners consistently planned to allocate higher budgets for their home renovations each year. However, it’s worth noting that Houzz’s initial forecast for 2022 anticipated a return to a median spending level of $15,000.
External Factors at Play
The ongoing evolution of the home improvement sector is significantly shaped by external factors, including natural disasters and severe weather conditions. In a recent survey by Angi involving 1,000 participants from across the United States, individuals were asked to provide insights into their recent home repair experiences and the associated costs.Â
The survey revealed that a substantial 63% of respondents expressed surprise at the cost estimates for home repairs, highlighting a notable variation in costs from one state to another. Furthermore, the survey’s findings indicated that homes in states prone to a higher frequency of natural disasters and extreme weather conditions tend to be more susceptible to exterior damage. As a result, it was established that the states with the highest maintenance costs for homeowners included Missouri, New York, Pennsylvania, Ohio, North Carolina, Georgia, Illinois, California, Florida, and Texas.
Home Improvement Vertical in Affiliate Marketing
Considering the worldwide data within the home improvement niche and examining this vertical through the lens of affiliate marketing, we can identify the following characteristics:
- Product Diversity. Unlike many other niches, home improvement offers a wide spectrum of products to promote. From tools and appliances to home decor and furniture, marketers have an expansive range of offerings to choose from.
- Steady Demand. Home improvement products enjoy an ever-present stream of potential customers as homeowners are always on the lookout for ways to enhance their living spaces. The correlation between rising mortgage rates and increased investment in home improvement further fuels this demand.
- High Commissions. The home improvement sector boasts substantial earning potential for marketers due to its high-ticket products and services, making it an enticing vertical to explore.
- Seasonal Opportunities. The home improvement sector follows distinct seasonal trends, such as spring remodeling and winter weatherproofing, allowing marketers to tailor their campaigns to capitalize on these fluctuations.
- Educational Content. Home improvement contributes to educational content, such as how-to videos and renovation blogs. These resources not only attract leads but also help retain them through valuable insights.
Affiliate marketers specializing in the home improvement vertical often concentrate on promoting highly rewarding services like roof repair and replacement, bathroom and kitchen makeovers, window installation, HVAC upgrades, solar solutions, flooring, siding, and guttering. Beyond these core services, the vertical also extends its reach to encompass a wide range of home-related offerings, including home cleaning, interior painting, lawn care, and more.
The allure of the home improvement vertical for affiliates is multifaceted. It can be attributed to the combination of generous commission rates, a consistent demand for home enhancement services, and the wide array of products and services available for promotion. This confluence of factors creates an environment that is highly conducive to affiliate success.
The home improvement sector’s growth trajectory remains positive, underpinned by factors such as increasing homeownership rates and the evolving trends in remote work and online education. With more time spent at home, individuals are progressively investing in their living spaces, creating a robust demand for the services affiliates promote.
Noteworthy trends within the home improvement vertical include the integration of smart home technologies, sustainable living solutions, and updates designed to accommodate the growing prevalence of home offices. These emerging trends present ample opportunities for affiliates to tap into expanding markets, further solidifying the appeal of the home improvement vertical in the affiliate marketing world.
Connecting Homeowners and Contractors: The Rise of Contractor-Matching Services
In recent years, the home improvement industry has witnessed a notable transformation. The emergence of contractor-matching services has revolutionized the way homeowners and contractors interact, making the process of enhancing living spaces more accessible and efficient. These platforms, like MyHomeQuote or Houzz, provide an array of services and resources tailored to the diverse needs and preferences of both parties, offering a streamlined journey from ideation to project completion.
One standout example of this evolution is MyHomeQuote, a contractor-matching service that has seen remarkable growth. MyHomeQuote has strategically broadened its range of service categories, ensuring it caters to an even wider spectrum of home improvement requirements. This expansion has not only diversified its audience but also created solutions for ambitious renovations and minor fixes alike.
MyHomeQuote‘s remarkable success can be attributed to its adept use of targeted marketing strategies, effectively reaching homeowners in search of trustworthy contractors. This strategic approach has particularly benefited local contractors, who have found MyHomeQuote to be an indispensable tool for reaching their target audience and expanding their clientele.
For marketers seeking new and promising verticals to explore, platforms like MyHomeQuote offer an intriguing opportunity. These innovative platforms, which facilitate connections between homeowners and skilled contractors, can be a captivating choice for those looking to expand their marketing horizons. MyHomeQuote, in particular, stands out as an exceptionally interesting option for affiliates seeking a reliable partner.
Contractor-Matching Services Market Insights
Our research on this case also revealed some other trends. From Q2 to Q3 2023, the largest percentage increases in demand on MyHomeQuote were observed in categories such as kitchen renovation, with an increase of over 400%; siding installation, with a rise of over 400%; and home warranty, with an increase of more than 1500%. These figures suggest a significant surge in interest in these areas.
Certain categories of home improvement services are experiencing notable trends. Some sectors, such as solar and roofing, are witnessing substantial increases in demand, reflecting a growing interest in these particular services. Conversely, there are categories like HVAC and Walk-in Tubs that have seen a decrease in leads. This decline may be attributed to seasonal fluctuations or shifts in market demand.
These trends are not unique to one platform; they are consistent across multiple platforms, like Houzz. These platforms continually enrich their collections with a growing number of interior and exterior home photos, showcasing a diverse range of design styles. Additionally, platforms like Angi and others are actively contributing to the evolution of this dynamic landscape.
Disclaimer: Insights from ClickDealer CEO, Taras Kiseliuk.
In crafting this article, invaluable insights were drawn from the CEO of ClickDealer, Taras Kiseliuk.
Conclusion
The home improvement industry, with its diverse audience, high conversion potential, targeted marketing capabilities, and localized opportunities, presents a promising niche for marketers to explore and capitalize on. The home improvement vertical in affiliate marketing presents an exciting and lucrative opportunity for marketers. Its unique characteristics, broad product range, consistent demand, and potential for high commissions make it likely to become a standout niche within the marketing landscape. As the home improvement industry continues to evolve, savvy affiliates are poised to thrive by aligning their strategies with the evolving needs and preferences of homeowners seeking to enhance their living spaces.
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