2. Methodology
Objective: To size the growth of advertising spend on affiliate
marketing channel, map trends, and identify sector
hotspots and opportunities
Sample: Based on 115 advertiser & merchant companies.
Methodology: Online survey, hosted on Survey Gismo
Survey: 5-10 minute survey live during September –
October 2012
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 affiliates
Source: IAB A4U Affiliate Marketing Survey, October 2012
4. Market sectors surveyed
Qn: What market sector do you operate in?
Qn: What market sector do you operate in?
Retail: Other*
Food
Cosmetics/toiletries
Home & garden
Fashion / clothing
* Retail: Other includes: health, Other includes: Business and Industrial,
jewellery, software, multi- Utilities, Health, Pets,
category, music cds
Source: IAB A4U Affiliate Marketing Survey, October 2012
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?
Qn: What is your company’s online turnover per annum?
Over half of the advertisers
surveyed reported
£10million + annual online
sales revenues, a strong
indicator that the affiliate
channel is attracting high
spending brands
Source: IAB A4U Affiliate Marketing Survey, October 2012
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 aarise or fall in affiliate commission payments during the next 12 months?
Qn: Do you forecast rise or fall in affiliate commission payments during the next 12 months?
Expect increased payments (72%) Expect decreased payments (12%)
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 note),
say they’re increasing investment in their affiliate
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. Advertisers making monthly commission
payments of over £31K significantly increased
Qn: What is your average monthly affiliate commission payment?
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%
34% 41%
Source: IAB A4U Affiliate Marketing Survey, October 2012
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?
Qn: What % of your overall online marketing spend is attributed to affiliate marketing?
Programmes investing less than 10% Programmes investing more
of their marketing budget in the than 31% of their marketing
affiliate channel decreased by: budget in 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 content
Source: IAB A4U Affiliate Marketing Survey, October 2012 marketing.
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?
Qn: Are you planning to increase your affiliate spend during the next 12 months?
Almost 2/3 of all
advertisers surveyed said
they would be increasing
their investment in the
affiliate channel in 2013.
Source: IAB A4U Affiliate Marketing Survey, October 2012
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)
Qn: How long have you been running your affiliate programme? (to the nearest full year)
23% of respondents report their affiliate
programmes were established within the
last 12 months indicating that the
channel has significant attractions to
marketers
58% respondents are running seasoned
affiliate programmes, more than 3 years
old. 28% report their programmes are 6
years and older
Source: IAB A4U Affiliate Marketing Survey, October 2012
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?
Qn: Which affiliate type provides your principle revenue?
Advertisers benefiting from growing
consumer trend to ‘deal-search’ online.
Source: IAB A4U Affiliate Marketing Survey, October 2012
12. Branded affiliate sites producing reliable
advertiser revenues
Qn: What type of affiliate / /publishers do you work with?
Qn: What type of affiliate publishers do you work with?
Qn: Which affiliate type provides your principle revenue?
Qn: Which affiliate type provides your principle revenue?
Publishers worked with
Principle revenue sources
Source: IAB A4U Affiliate Marketing Survey, October 2012
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:
Qn: Thinking about how you plan and manage your affiliate programme, is the main strategy generated:
Note: In 2011 there was no “A combination of two or more” option
Source: IAB A4U Affiliate Marketing Survey, October 2012
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?
Qn: How many affiliate networks do you work with?
Source: IAB A4U Affiliate Marketing Survey, October 2012
15. For more information
For more information contact:
Clare O’Brien, Industry Programmes Consultant
clare@iabuk.net
020 7050 6963
