Affiliate marketing sales to hit £4.6bn in 2010

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By: Wise Marketer Staff |

Posted on August 25, 2010

Affiliate marketing sales to hit £4.6bn in 2010

The affiliate marketing sector will drive an estimated £4.62 billion in UK online retail sales during 2010, according to a recent report published by Econsultancy.

The Affiliate Marketing Buyer's Guide 2010, estimates that the UK's digital performance marketing sector grew by 8% in 2009 and will expand by a further 12% in 2010.

According to the report, the sector was worth £4.13 billion in 2009, when an estimated £245 million was paid in commissions and fees to affiliates and networks.

In line with the sector's overall growth, the value of commission and fees will increase to £275 million for 2010, according to the report.

The 4.62 billion figure should be seen in the context of figures released by the Interactive Media in Retail Group (IMRG), which predict that online sales during 2010 will reach some £56 billion.

The affiliate marketing industry will be responsible for 8% of all online sales within the UK during 2010 according to these figures.

According to Econsultancy's research manager, Aliya Zaidi, "Econsultancy believes that the sector will continue to add value to the customer journey and drive significant sales for companies which they wouldn't have otherwise made."

And, although the recently harsh economic climate has caused problems for the sector, it has also benefited from a shift in marketing emphasis to performance-based marketing and online channels.

"There is also increased consumer demand for bargains, coupled with the growing trend toward researching purchases online. Increased consumer thriftiness has meant opportunities for affiliates offering deals, discounts and voucher codes," said Zaidi.

The Econsultancy/ExactTarget Marketing Budgets 2010 Report, published at the beginning of 2010, found that 36% of responding companies were planning to increase their affiliate marketing budgets compared to only 9% who said that they were planning to decrease them.

Among the key affiliate marketing trends identified in the report for 2010 and beyond:

  • Affiliate marketing prospers in difficult economic climate;  
  • Transparency holds key to enhancing industry reputation;  
  • Consumers turn to voucher-code and cash-back websites;  
  • Case for multi-attribution model gains momentum;  
  • Emerging channels drive affiliate marketing innovation.

The affiliate networks profiled in the report include Affilinet, Commission Junction, Digital Window, LinkShare, Online Media Group (OMG), Paid On Results, TradeDoubler, and Webgains, and the agencies profiled include 7thingsmedia, Affiliate programme Advice, Altogether Digital, Azam Marketing, bigmouthmedia, Existem Affiliate Management, Media Contacts, R.O.EYE, Stream:20 and ZenithOptimedia.

The full report can be purchased directly from Econsultancy's web site - click here.

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