US Affiliate Census 2009 – Significant Findings Uncovered
The US Affiliate Census sponsored by MediaTrust.com and produced by e-Consultancy in association with AffiliateProgramAdvice.com has uncovered some very interesting statistics governing the health of affiliate marketing in the United States and moreover, the interaction by US affiliates in the Global Market.
Affiliate marketing has stepped up a gear with more respondents now declaring they engage in affiliate marketing full time as opposed to part time. Just over half of all affiliate respondents declaring they now devote all their working time within the industry. This is a very significant statistic. It clearly indicates that what ten years ago was regarded as a hobbyist activity and a way of earning a little extra towards the household budget has now progressed and transformed itself into a highly professional and marketing oriented industry. What is extremely significant is that there is still scope for a strong expansion in the industry with 85% of affiliates working from home. This indicates that whilst many affiliates are engaged in full time activity, in terms of numeral quantity regarding commercial interlinking, affiliates are still on the whole small operators in the commercial sectors. It indicates that affiliate marketing has grown from a part time activity over the last decade to a full time commercial prospect for many individuals but that there is still significant room for expansion with affiliates directly employing others as the industry expands further.
This clear indication that affiliate marketing is growing and that there is significant room for expansion also highlights that there is room for many more individuals to participate in affiliate marketing and that new “blood” to the industry can benefit the merchant and also that existing affiliates can have the interoperability to expand into major companies.
Nearly a quarter of all affiliates are reporting they are at the lower end of productivity, generating around $50 a month in revenue. Just under a fifth of all affiliates who responded to the survey report conversely that they generate in excess of $50,000 every month in revenue for a merchant. This is a significant figure. What is even more interesting is that more than 32% of affiliates generate $10,000 a month or more for merchants.
There is an extremely close differential between paid search activity and true content undertaken by affiliates from which affiliates indicate as their priority of importance. More true content is now being generated and this can only strengthen Brand awareness, particularly for smaller merchants wishing to expand into the market place.
More US affiliates promote UK retailers proportionately than UK affiliates promote US retailers. This clearly indicates particularly amongst established affiliates, a willingness to embrace new markets. 98% of US affiliates promote US merchants.
The strongest US sector promoted by affiliates in the US is the Health, Sports & Fitness sector. This sector is heavily promoted by 41% of all affiliates. Two fifths of all US affiliates promote 10 merchants or less and this could be an indication when put together with the information revealed that a significant number of affiliates are lone operations. It means that at present the industry is growing but that it is not in a position to absorb greater and heavier intensive promotional activity by the majority of affiliates.
One interesting demographic about affiliates is that everyone has misconceived what age an affiliate is. I had always assumed that young people (the tech savvy new age) were the main recruitment source for people wishing to be part of the affiliate industry. It shocked me to discover that half of all affiliates are actually aged 31 – 50. Looking at these figures in closer detail I can see why. Many affiliates still consider affiliate marketing activity to be part time and a supplementary income stream. What is clear is that as more affiliates expand into outright commercial enterprises employing staff, younger people will become more involved in the industry as affiliates or working for an affiliate company.
54% of all affiliates in the industry joined prior to 2007 so a massive 46% are new entrants with less than two years in the industry as affiliates. This is highly significant as it demonstrates that affiliates who are newly joined are looking for additional income sources and with further experience could themselves expand into full time commercial operations employing others. This clearly identifies that the economic downturn is also playing a part in affiliate recruitment with more people looking for supplementary income. What is encouraging is that the number of women involved in the industry is increasing with 28% of all respondents indicating they are women affiliates. The industry however is still far too male oriented but the improvement in women affiliate numbers is encouraging. As an Agency, we know very clearly that some of the best producing affiliates in many sectors are women and that this industry needs more women to participate.
Affiliates are also getting smarter with many more people from the “professional classes” (people with BA/BS or higher) now participating as affiliates.
Little Fish full Just under a third of all affiliates are generating significant traffic (over 10,000 visitors) every month and this reflects the high earning potential being indicated by affiliates who responded to the survey.
What has seriously interested me is that two fifths of respondents use a blog for marketing.
What has shocked me is that only a quarter of affiliates use a datafeed. More stimulating is that text with embedded links accounts for half of all preferred activity. This lack of use by datafeeds has come as a shock. Far too often I read in forums complaints by affiliates about datafeed quality. So my questions here are supplementary to the report. Are datafeeds NOT used because they are rubbish, they are not in depth, they are not suitable, they are not needed or because the affiliate does not know how to use them? Why is it that only a quarter of affiliates use material from a datafeed?
The strongest affiliate network by revenue in the US as indicated by affiliates is Commission Junction with half of all affiliates indicating it is in their top three. A third of all affiliates indicate Linkshare in their top three. A surprising newcomer is Google Affiliate Network with just over a fifth of all affiliates indicating this in amongst their top three.
The two most important aspects indicated by affiliates as to which network they would participate in are a broad range of merchants and tracking. Surprisingly payment terms came very low on affiliates criteria of importance. The size of a network was not an important issue, indicating that smaller networks can attract a loyal following of affiliates if they excel in many key strategic areas.
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The key point that affiliates have indicated in terms of merchant approachability is that too many merchants are stand off in their approach. Affiliates clearly (two thirds) indicate they want someone to talk to. Merchants would be well advised to have someone dedicated to the needs of affiliates as many indicate they will not promote a merchant who ignores them.
The US Affiliate Census strongly indicates that the industry is maturing with many older affiliates becoming involved. It also indicates that if you are prepared to take the time to learn the industry you can make significant sales turnover. I am very encouraged that US affiliates are embracing non US markets although this seems mainly restricted to Canada and the UK with few venturing beyond that.
I am delighted to see more women affiliates. From a male perspective it makes those important affiliate get togethers all the more convivial. Women account for half this planets population. We need even more women affiliates. They are highly motivated and extremely successful carving out niches and maximising revenue for merchants.
Dirty hd As indicated, communication between affiliate is vital. This does NOT mean that affiliates wish to be bombarded with information overload. What they want is communication and action taken when they raise an issue. They wish to communicate and they do not wish to be ignored, but a fine balance has to be drawn between the desires of the merchant to get greater exposure and sales and the needs of the affiliate to be allowed to just get on with things without being constantly called on.
What has clearly come across in this survey is that merchants now have at their disposal an effective marketing team with many highly professional affiliates capable of taking their programs to greater levels of achievement. I have great hopes for the future of affiliate marketing and US affiliates are now seriously becoming highly professional in their expertise and activity.
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