IAB Affiliate Advertiser SurveyIn association with A4UOctober 2012
MethodologyObjective:   To size the growth of advertising spend on affiliate             marketing channel, map trends, an...
Quick summary     • 100% of advertisers survey expect their online revenues to grow in 2013, with 44%         estimating r...
Market sectors surveyed   Qn: What market sector do you operate in?                               32%      Retail: Other* ...
Affiliate channel is engaging more brands with high                  online revenues: 52% report £10m+ annual t/o  Qn: Wha...
Affiliate channel‟s growth in 2013 fuelled by increased                        marketing investment in affiliate programme...
Advertisers making monthly commission                payments of over £31K significantly increased  Qn: What is your avera...
Affiliate‟s increased share of marketing investment is                clear indication of the channel‟s strengthening role...
Greater need for marketing ROI continues: increased                marketing investment in affiliate channel predicted  Qn...
As the affiliate sector matures, it‟s attracting a                   significant volume of new advertisers, indicating    ...
Growing consumer „deal searching‟ trend through cashback                and voucher code sites produce principle revenue s...
Branded affiliate sites producing reliable                advertiser revenues  Qn: What type of affiliate / publishers do ...
Collaborative style emerging as advertisers blend affiliate                programme planning between in-house teams, agen...
Majority still using 1 affiliate network, but                declining, while users of 2/3 networks growing               ...
For more informationFor more information contact:Clare O‟Brien, Industry Programmes Consultantclare@iabuk.net020 7050 6963
Upcoming SlideShare
Loading in …5
×

Affiliate survey-2012

542 views
469 views

Published on

Survey A4U & IAB UK

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
542
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
3
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Affiliate survey-2012

  1. 1. IAB Affiliate Advertiser SurveyIn association with A4UOctober 2012
  2. 2. MethodologyObjective: To size the growth of advertising spend on affiliate marketing channel, map trends, and identify sector hotspots and opportunitiesSample: Based on 115 advertiser & merchant companies.Methodology: Online survey, hosted on Survey GismoSurvey: 5-10 minute survey live during September – October 2012
  3. 3. Quick summary • 100% of advertisers survey expect their online revenues to grow in 2013, with 44% estimating revenue increases of between 11-25% • Affiliate marketing spend share is increasing and the survey show a 45% uplift in the number of advertisers spending more than 31% of their online marketing budgets in the affiliate channel • More than a quarter of the advertisers surveyed (28%) are running seasoned affiliate programmes that are 6 or more years old • The channel continues to grow rapidly: advertisers with new affiliate programmes set up during the last year, accounted for 23% of respondents. • Over half of the respondents have annual online revenues of over £10 million • Over half of the advertisers said that their monthly affiliate commission payments rose in the last year • 72% expect affiliate commission payments to rise in the next 12 months • 61% are planning to increase their affiliate marketing spend during the next 12 months • 49% of principle revenues are from cashback and vouchercode affiliatesSource: IAB A4U Affiliate Marketing Survey, October 2012
  4. 4. Market sectors surveyed Qn: What market sector do you operate in? 32% Retail: Other* Food 22%Cosmetics/toiletries Home & garden 14% 10% 10% Fashion / clothing 4% 3% 3% 2% * Retail: Other includes: Other includes: Business and Industrial, health, jewellery, software, mult Utilities, Health, Pets, i-category, music cdsSource: IAB A4U Affiliate Marketing Survey, October 2012
  5. 5. Affiliate channel is engaging more brands with high online revenues: 52% report £10m+ annual t/o Qn: What is your company’s online turnover per annum? Up to Over half of the advertisers 500k, 12% surveyed reported £10million + annual online £500k - £2.5 sales revenues, a strong million, 13% indicator that the affiliate Over £10 million, 52% channel is attracting high £2.6 million spending brands - £5 million, 12% £5.1 million - £9.9 million, 13%Source: IAB A4U Affiliate Marketing Survey, October 2012
  6. 6. Affiliate channel‟s growth in 2013 fuelled by increased marketing investment in affiliate programmes: 72% say commission payments will continue to increase Qn: Do you forecast a rise or fall in affiliate commission payments during the next 12 months? Decrease, 1 2% Expect decreased payments (12%) Expect increased payments (72%) Stay the same, 17% Increased Improved publisher Other investment in network Economic Appropriateness Reduced Other Rise, 72% conditions of product / investment in affiliate programme service for affiliate affiliate channel programme Expect payments to stay the same (17%) • Significantly almost three quarters of respondents expect monthly commission payments to rise during 2013 • 81% of those expecting increased payments (see Economic conditions Appropriateness of Other note), say they‟re increasing investment in their affiliate product / service for affiliate channel programmes pointing to greater reliability of and confidence in the channel. • Only 12% expect commission payments to decrease and 54% of those cite economic conditions for their prediction. NOTE: base size of reasons for rise, fall and no change inconsistent and so regard charts as narrative indicators only.Source: IAB A4U Affiliate Marketing Survey, October 2012
  7. 7. Advertisers making monthly commission payments of over £31K significantly increased Qn: What is your average monthly affiliate commission payment? • (Commission payments over £31K show a 21% uplift from 2011 to 2012) • Advertisers paying out more than £100K per month in payments increased by 16% 19% 34% 41% 22% 15% 19% 25% 100k+ 19% 31 - 100k 11 - 30k 0 - 10k 41% 41% 2011 2012Source: IAB A4U Affiliate Marketing Survey, October 2012
  8. 8. Affiliate‟s increased share of marketing investment is clear indication of the channel‟s strengthening role within the marketing mix Qn: What % of your overall online marketing spend is attributed to affiliate marketing? Programmes investing less than 10% Programmes investing more than of their marketing budget in the affiliate 31% of their marketing budget in channel decreased by: the affiliate channel rose by: 18% Advertisers investing less than 10% of their 45% Advertisers investing more than 31% of their marketing budget in the affiliate channel fell marketing budget in the affiliate channel rose from 51% (2011) to 42% (2012) from 11% (2011) to 16% (2012) NOTE: Online marketing spend defined as media spend within paid search, online display, email marketing, lead generation, social media channels and contentSource: IAB A4U Affiliate Marketing Survey, October 2012 marketing.
  9. 9. Greater need for marketing ROI continues: increased marketing investment in affiliate channel predicted Qn: Are you planning to increase your affiliate spend during the next 12 months? Dont Almost 2/3 of all Know, 2 advertisers surveyed said 3% they would be increasing their investment in the affiliate channel in 2013. No, 16% Yes, 61 %Source: IAB A4U Affiliate Marketing Survey, October 2012
  10. 10. As the affiliate sector matures, it‟s attracting a significant volume of new advertisers, indicating recognition of the channel‟s effectiveness Qn: How long have you been running your affiliate programme? (to the nearest full year) 6 6 or more months, 1 years, 28 2% % 1 23% of respondents report their affiliate year, 11% programmes were established within the last 12 months indicating that the channel has significant attractions to marketers 5 2 years, 6% years, 18 4 3 % years, 13 years, 11 6 % % 6 or more months, 1 years, 28 2% % 1 58% respondents are running seasoned year, 11% affiliate programmes, more than 3 years old. 28% report their programmes are 6 years and older 5 2 years, 6% years, 18 4 3 % years, 13 years, 11 % %Source: IAB A4U Affiliate Marketing Survey, October 2012
  11. 11. Growing consumer „deal searching‟ trend through cashback and voucher code sites produce principle revenue streams for 49% of advertisers surveyed Qn: Which affiliate type provides your principle revenue? 29% 18% 20% 15% 11% 3% 3% 2% Advertisers benefiting from growing consumer trend to „deal-search‟ online.Source: IAB A4U Affiliate Marketing Survey, October 2012
  12. 12. Branded affiliate sites producing reliable advertiser revenues Qn: What type of affiliate / publishers do you work with? Qn: Which affiliate type provides your principle revenue?100% 35% Publishers worked with 90% 90% Principle revenue sources 81% 30% 80% 75% 70% 29% 67% 25% 20% 60% 20% 51% 50% 18% 43% 15% 40% 35% 15% 11% 30% 10% 20% 3% 2% 5% 10% 2% 3% 0% 0%Source: IAB A4U Affiliate Marketing Survey, October 2012
  13. 13. Collaborative style emerging as advertisers blend affiliate programme planning between in-house teams, agencies and networks Qn: Thinking about how you plan and manage your affiliate programme, is the main strategy generated: 2012 7% 26% Network 18% 2011 Agency 15% In House 21% A combination of 64% two or more 50%Source: IAB A4U Affiliate Marketing Survey, October 2012 Note: In 2011 there was no “A combination of two or more” option
  14. 14. Majority still using 1 affiliate network, but declining, while users of 2/3 networks growing significantly Qn: How many affiliate networks do you work with? 59% 52% 26% 2011 21% 2012 11% 13% 10% 7% 1% 1% 0 1 2 3 More than 3Source: IAB A4U Affiliate Marketing Survey, October 2012
  15. 15. For more informationFor more information contact:Clare O‟Brien, Industry Programmes Consultantclare@iabuk.net020 7050 6963

×