UK Affiliate Census 2009


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The UK Affiliate Census 2009, which is backed by Affiliates4U and the leading affiliate networks, is the most detailed study available about the make-up of the affiliate community.

The study, carried out in association with Affiliate Window, is essential reading for those who want to know more about affiliates, including how much revenue they are generating, how they are getting their traffic and which linking methods they are using.

The 60-page report, based on a survey of more than 1,000 affiliates, looks in detail at the nature and quality of relationships affiliates have with networks and merchants.

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UK Affiliate Census 2009

  1. 1. UK Affiliate Census 2009 In association with Affiliate Window Linus Gregoriadis Research Director Email: [email_address] Website:
  2. 2. Overview UK Affiliate Census | <ul><li>Methodology </li></ul><ul><li>Findings </li></ul><ul><ul><ul><li>Affiliate businesses </li></ul></ul></ul><ul><ul><ul><li>Networks </li></ul></ul></ul><ul><ul><ul><li>Merchants </li></ul></ul></ul><ul><ul><ul><li>Communication and resources </li></ul></ul></ul><ul><ul><ul><li>Questions </li></ul></ul></ul>
  3. 3. Methodology <ul><li>Online survey in January 2009 </li></ul><ul><li>Two years after the inaugural affiliate census </li></ul><ul><li>Promoted by all leading networks to members </li></ul><ul><li>Over 1,000 respondents </li></ul><ul><ul><ul><li>34% full-time </li></ul></ul></ul><ul><ul><ul><li>46% part-time </li></ul></ul></ul><ul><ul><ul><li>20% hobbyists </li></ul></ul></ul><ul><li>All respondents UK based </li></ul>UK Affiliate Census |
  4. 4. | 13 January 2008 | Course Title | Affiliate businesses
  5. 5. Revenues generated from affiliate businesses <ul><ul><ul><li>A third of affiliates (31%) earn less than £50 per month. </li></ul></ul></ul><ul><ul><ul><li>13% earn more than £50,000 per month (for merchants) </li></ul></ul></ul><ul><ul><ul><li>True content (36%) and PPC (20%) top-rated categories. </li></ul></ul></ul><ul><ul><ul><ul><li>PPC more important for full-time. </li></ul></ul></ul></ul><ul><ul><ul><li>Text links ( 35%) and banners (26%) top-rated linking methods. </li></ul></ul></ul><ul><ul><ul><ul><li>Banners more important for part-time. </li></ul></ul></ul></ul>Ranking of affiliate categories and linking methods UK Affiliate Census |
  6. 6. Voucher-code / cashback sites <ul><ul><ul><li>Seen as a threat by 43% of affiliates. </li></ul></ul></ul><ul><ul><ul><li>Could increase awareness about the sector. </li></ul></ul></ul>UK Affiliate Census | “ They will educate and reassure the public masses about various sectors (cash-back, bingo, discounts), opening up a much larger customer base for us all.” “ Voucher code and incentive-based sites are going to destroy affiliate marketing for normal people and small businesses completely if the systems that are currently allowed for them remain unchecked.” “ Cash-back incentives don't stop people from searching for a still better deal, or reviews before they buy. Not necessarily a threat - depends on how you present the merchant to buyers, and what niche you're in for competitor reasons.” “ These will of course damage existing content sites as more people are aware of cash-back models.”
  7. 7. Last click wins rewards model UK Affiliate Census |
  8. 8. | 13 January 2008 | Course Title | Networks
  9. 9. Ranking of different networks UK Affiliate Census | <ul><li>Percentage of affiliates ranking #1 network </li></ul>43% 18% 10% 9% 8% 5% 2% 2%
  10. 10. Most important criteria for selecting a network UK Affiliate Census | <ul><li>Range of advertisers and tracking reliability deemed most important </li></ul>
  11. 11. Role of networks <ul><li>Includes both positive and negative sentiment </li></ul><ul><ul><ul><li>Failure to take responsibility for dubious affiliates. </li></ul></ul></ul><ul><ul><ul><li>Lack of good support from some networks. </li></ul></ul></ul><ul><ul><ul><li>Need for more transparency. </li></ul></ul></ul><ul><ul><ul><li>Appreciation of networks and satisfaction. </li></ul></ul></ul><ul><ul><ul><ul><li>Delivery of a professional service and tech support. </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Saves on time and effort. </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Recognised/established networks can be trusted. </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Can help increase revenue streams. </li></ul></ul></ul></ul>UK Affiliate Census |
  12. 12. “ They still have a long way to go in terms of providing a high quality, professional service.” “ I think networks are a fantastic idea…It cuts out all the hassle of dealing with individual advertisers and it saves the bother of joining dozens of individual affiliate programmes...” UK Affiliate Census | “ There is a need [for] more transparency about how merchants are ‘policed’, to ensure valid sales are logged.” “ I would prefer quicker responses to request for assistance with technical issues, and would prefer to discuss issues and solutions over the phone, rather than via email.” “ There appears to be a lack of training to affiliate managers (on both a network and merchant level) in understanding an affiliate.” “ Trust is an important issue, when it comes to networks.” “ As affiliate marketing moves from an unregulated profession to a reputable marketing channel, networks will be relied upon to clamp down upon the ‘cowboys’ within the industry.” “ They need to be more aggressive in policing bad affiliates, even if it costs them income.”
  13. 13. | 13 January 2008 | Course Title | Merchants and sectors
  14. 14. Most widely promoted sectors UK Affiliate Census | Travel / flights: 33% Electrical goods: 29% Gifts / gadgets: 28% Fashion / Clothes / lingerie / accessories: (27%) Entertainment / music: 26% Computers / laptops / peripherals: (25%) Home / Gardening: 23% Books: 22%
  15. 15. Biggest climbers since 2007 UK Affiliate Census | % Change Home / Gardening (+ 8%) Gifts / Gadgets (+ 6%) Electrical goods (+ 5%) Health / Sport / Fitness (+ 5%) Computer games and consoles (+ 5%)
  16. 16. Reasons for not promoting a merchant UK Affiliate Census |
  17. 17. Reasons for dropping a merchant UK Affiliate Census |
  18. 18. Demonstrating loyalty to affiliates <ul><ul><ul><li>Honesty </li></ul></ul></ul><ul><ul><ul><li>Flexibility </li></ul></ul></ul><ul><ul><ul><li>Better communication </li></ul></ul></ul>“ Open communication is good. [It is important] to work as a team. After all, both the affiliate and the merchant have a common goal – sales.” “ Be willing to look at alternative ways of promoting the company, beside the traditional methods.” “ Why should a merchant show loyalty? I have no loyalty; if another merchant pays me, then I will redirect traffic there. I don’t expect loyalty, as I can’t reciprocate.” “ Better communication, fair incentives, maximum notice when terms change.” UK Affiliate Census |
  19. 19. Reasons for working with merchants directly UK Affiliate Census |
  20. 20. Reasons for not working with merchants directly UK Affiliate Census | <ul><li>Direct relationships: time-consuming </li></ul>
  21. 21. | 13 January 2008 | Course Title | Communication and resources
  22. 22. Ranking of different sources of information UK Affiliate Census |
  23. 23. Level of communication with merchants UK Affiliate Census |
  24. 24. Opportunities and threats UK Affiliate Census | Opportunity Threat <ul><ul><ul><ul><li>Mobile internet 55% 10% </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Recession 55% 30% </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Google 30% 44% </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Super-affiliates 22% 36% </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Voucher-code sites 20% 43% </li></ul></ul></ul></ul>
  25. 25. How to revolutionise the industry <ul><ul><ul><li>Enforcing stricter rules for voucher code sites. </li></ul></ul></ul><ul><ul><ul><li>Skills and training. </li></ul></ul></ul><ul><ul><ul><li>Better tracking to ensure fair commissions. </li></ul></ul></ul><ul><ul><ul><li>Communication and transparency. </li></ul></ul></ul><ul><ul><ul><li>Competition to prevent over-saturation in the industry. </li></ul></ul></ul>UK Affiliate Census | “ Consolidate the number of networks and agencies. Hopefully, the forthcoming recession will bring this about.” “ Decent analytics for merchants to see the sales process and the ways the affiliate sectors influence it. i.e. late stage addition of voucher code or cash-back affiliate. They will then see the true benefit of content vs. non content affiliates.” “ Technological advances in tracking and monetising links from social networking sites and blogs in unobtrusive formats.” “ Training merchants to understand online marketing.”
  26. 26. Questions? All rights reserved. No part of this presentation may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright © Ltd 2009. <ul><li> </li></ul>UK Affiliate Census |