UK affiliate marketing sector worth more than £4bn
London, May 1, 2009 (source E-Consultancy.com
)
The UK affiliate marketing sector will be worth more than £4bn in online retail sales in 2009, according to a report released this week by Econsultancy.
Research published in the Affiliate Marketing Buyer’s Guide 2009 estimates that the market grew by 22% in 2008 to a value of £3.82bn.
According to the report, an estimated £227m was paid in commissions and fees to affiliate publishers and networks last year as the performance-based advertising model continues to attract advertisers.
According to figures from IMRG and Capgemini, overall UK online retail sales grew by 25% in 2008 to £43.8 billion. The affiliate marketing industry was therefore responsible for nearly a tenth of all online sales during 2008, according to these figures.
Econsultancy’s Research Director, Linus Gregoriadis, said: “Because it is rooted in performance, affiliate marketing is continuing to prosper as an industry and we believe the affiliate sector will remain at the forefront of e-commerce as it continues to drive a high proportion of online sales.
“Although the slashing of marketing budgets and well-documented collapse of companies such as Woolworths has had a negative impact, the increased appetite for performance-based advertising is making up for some of that downside.”
About the Affiliate Marketing Buyer’s Guide
The guide is aimed at organisations and businesses trying to understand and select a supplier from within the affiliate marketplace, or who are currently reviewing their activity in this area. It is also relevant for anyone wishing to engage, understand or research the complexities involved in this market.
Affiliate marketing enables advertiser to share revenue with other websites (known as affiliates) which feature ads and content designed to drive traffic to the advertiser’s site. Affiliates receive commission on sales (or leads, or sign-ups).
Affiliate marketing works on a cost-per-acquisition model whereby advertisers only pay when there is a lead or sale.
Key market trends in 2009
· CPA (cost per acquisition) model goes from strength to strength
· Consumers turn to voucher code and cash-back websites
Valiant movie download · Issues surrounding “last-click-wins” become more apparent
Memento download · Affiliates call for a greater emphasis on transparency & communication across the sector
· Publishers develop innovative media methods
· More agencies offer affiliate marketing services to clients
Which vendors/technology platforms are featured in the buyer’s guide?
Se7en rip The Riddle full movie The networks profiled are:
Affiliate Window, affilinet, Clash-Media, clixGalore, Commission Junction, dgmAffiliates, LinkShare, Online Media Group, Paid On Results, Platform-A, TradeDoubler, Webgains, Zanox.
The agency suppliers profiled are:
AffiliateProgramAdvice, Altogether Digital, Arctic Sunrise, bigmouthmedia, Blue Barracuda, Coast Digital, Equator, Existem, i-level, MVi, R.O.EYE, Steak, Stream:20, Zed
Report URL http://econsultancy.com/reports/affiliate-marketing-buyers-guide
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Comments
Hi Gordon, I agree with you that affiliate marketing is one of the ways to go and no more so then in the current economic climate.
In answer to your question with regards to the health related sector…
Main stream meds online is always going to be a sticky wicket where by end user is requesting a prescribed drugs. But the alternative pain relief and cosmetics market is thriving, down side with that is there are loads of companies selling lotions and potions that may not always have the professional body endorsement. In three words, research, research, research.
You wont find too many affiliates wanting to give up numbers in terms of income generated but in my experience, if you ask merchants/agencies/account managers with/running an affiliate program within the sector directly most (I hope)will give you some kind of an indication or yard stick. Due to data protection any merchant/agency giving out real affiliate info could land themselves in hot water.
Most well run affiliate programs will have an account manager or some point of contact for the merchant who will be able to supply you with top ten… fifty best selling products, tip… ask what the best converting product is, again in my experience, some times the analytics is not always looked at and what the perceived or is wanted to be a best seller can be misleading. A lot of good affiliate networks already have loads of metrics for affiliates to make an informed choice before they join a program, example, some networks will give you merchants site conversion, earnings per click, some even have merchant comparison information. But always, do your research first, there is loads of free info out there. In 30 second…
http://www.policyinnovations.org/ideas/briefings/data/organic_cosmetics
Up and coming brands http://www.paiskincare.com/ are to keep an eye open for.
But being an affiliate and promoting other people’s products is always going to be about your own traffic aggregation methods and my advice would be don’t look at what other affiliates are doing per say, the real challenge is looking at being a little different, don’t try to cover the entire market, take a tiny piece and build from there.
Good luck!
Jessica :0)
Thanks for the detailed response, I really appreciate it. I especially agree that it is a team effort to get the affiliate program working, merchants should give tips to affiliates and affiliates in turn should also be working to make their websites more attractive.
Affiliate marketing is the way to go people! I am really interested in finding out how health-related affiliate programs are doing since pain relief is more of a need than a want. Products like Facial Massagers and Aromatherapy Diffuser are especially selling well nowadays. So is there any information on which products are earning affiliates the most money?