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In addition to the affiliate marketing stuff I do with eBay (ePN) I’m also pretty involved in two other niches that I’ve promoted with both SEO methods and PPC. For the latter two niches it has been a lesson in shifting economic trends as well as what areas seems to resist economic downturns.

I won’t discuss how to do market research since this is a complex topic that gets discussed to death everywhere. It’s certainly a very important topic and it’s one of the first things newbies get initiated into when first venturing online.

The litany of research tools and methods runs the entire gamut from looking at the number of Adwords ads, browsing eBay Pulse, and even trying to decipher the Google Trends tea leaves. Certainly all useful resources and techniques, but the only indicators I pay attention to now are what actually converts visitors into buyers.

The best way I’ve found to test the buying mood of a particular market and demographic is via PPC.

PPC is fast, it doesn’t usually lie, and you can gather a lot of data to base an assessment on. Baring the ever present Google Slap, using Adwords PPC is not subject to the the number of incoming links to your site or the periodic ranking adjustments for your targeted keywords in the major search engines.

This was very apparent in a women’s clothing niche that I’ve been involved with for about three years now.

There were two seasonal niches that did very well last year, but absolutely tanked this year. Not much changed in the my Adwords campaigns. Similar placements, though the average CPC was a bit higher, but I chalked that up to Adwords inflation.

What was really different is the number of conversions.

The bottom had just dropped out.

One of the merchants had changed their site around a bit, but not to the point that I felt it would kill conversions to the extent that  I was seeing. The other merchant that I did well with last year also tanked horribly and their site remained virtually unchanged from last year.

So with all things being equal, the only conclusion  I could come to was that the market wasn’t in much of a buying mood.

The first merchant somewhat confirmed that to me and attributed it to the poor economy.

I tend to agree with this assessment. These particular products are not cheap, though they aren’t ridiculously expensive either. However, if you’re getting squeezed with $4 per gallon gas and rising food costs, you could probably make do without purchasing these particular garments.

Heck, the one from last year could suffice very nicely.

I certainly can relate to this mindset as I’m extremely frugal and only buy something if I absolutely need it or absolutely want it.

Please be aware of the distinction between “needing” and “wanting”.

I recently purchased a fairly expensive tennis racket. My old one was really a piece of crap, but certainly was still usable. But since I have begun taking private tennis lessons and practicing more, I just felt it was time to upgrade.

My car is a different story altogether.

It’s over 17 years old and on its last legs, but I pray I can keep it running til the end of the year.

It’s also interesting to note that two other sub-niches in the clothing niche I’m in still had rather strong seasonal sales this year. One of them is a lower-priced item that is easy to justify spending on, however, the other is more expensive and still sold briskly.

The latter one is in the “absolutely want” category much like my new tennis racket was for me.

A lot of people just will not allow themselves to be denied when it comes to certain consumer items.

What I’ve observed in my own affiliate marketing niches was somewhat confirmed by a talking head I recently saw on CNBC. He stated that the apparel and home-related markets were off, but the fitness and entertainment markets were still holding up.

I think it’s really a question of how people decide they want to live their lives. You can work really hard, but if that’s all you have, then your life is pretty boring and unfulfilling. Simple things like watching DVDs, playing video games, or indulging in a sport or hobby can take your mind away from the grind of the 9-5 work-a-day world.

That’s why I’m also finding that hobby and collectibles niches on eBay do better than many of the others I’ve tried.

Just something maybe you can take to the bank