Europeanaffiliatelandscapereport2012

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Europeanaffiliatelandscapereport2012

  1. 1. Created by PerformanceIN and in association with Webgains;the second annual European affiliate landscape survey includes input from over 900 European affiliates.[ European Affiliate MarketingLandscape Report 2012 ]
  2. 2. European Affiliate Marketing Landscape Report 2012In Association with WebgainsAll rights reserved. Existem Events Ltd grants you to store and print from this material for your own personal and commercial use.No part of this publication may be reproduced without prior permission from the publisher. Copyright © 2012 Existem Events LtdPage 2ContentsForeword.................................................................................................................................................4Landscape Report 2012 Highlights..........................................................................................................5European Demographic Data, Geographies and Affiliate Information...................................................7Figure 1: Gender .................................................................................................................................7Figure 2: Age .......................................................................................................................................7Figure 3: When Did You Start Work In Affiliate Marketing?...............................................................8Figure 4: Which Of The Following Best Describes You?......................................................................8Figure 5: Including You, How Many Employees Work In Your Affiliate Business? .............................8Figure 6: Have You Been Financially Funded In Any Way?.................................................................9Figure 7: In Which Country Is Your Primary Operation?.....................................................................9Figure 8: Which Territories Are You Planning To Expand Into During 2012? (43% are planning toexpand) .............................................................................................................................................10Figure 9: Which Verticals Do You Work In With Your Affiliate Activity? ..........................................11Figure 10: What Is Your Preferred Payment Model?........................................................................11Figure 11: How Would You Rate These Issues In Order Of Importance Within The Country YouConduct The Largest Amount Of Business?......................................................................................12Figure 12: On Average, How Much Commission Do You Earn Per Month?......................................12Figure 13: What Percentage Of Your Overall Company Turnover Is Attributed To PerformanceMarketing?........................................................................................................................................13Figure 14: Which Affiliate Models Do You Work With?....................................................................14Figure 15: How Important To Your Earnings Is Contextual Advertising? (i.e Adsense)....................14Figure 16:How Do You Generate The Majority Of Traffic To Your Website? ...................................14Figure 17: Have You Used Pay Per Call?............................................................................................15Figure 18: Which Is Your Preferred Network You Currently Work With? ........................................16Figure 19: Which 5 Of These Are Most Important To You When Working With An Advertiser /Merchant?.........................................................................................................................................16Figure 20: Which 5 Attributes Would Encourage You To Work More Closely With An Advertiser? 17Figure 21: How Would You Rate The Quality Of The E-mails You Receive From Agencies,Advertisers and Networks?...............................................................................................................17How can a Network / Advertiser / Agency improve their relationship with you? ...........................17Figure 22: Do You Think Your Commissions Earned In 2012 Will Be More Or Less Than In 2011?..18
  3. 3. European Affiliate Marketing Landscape Report 2012In Association with WebgainsAll rights reserved. Existem Events Ltd grants you to store and print from this material for your own personal and commercial use.No part of this publication may be reproduced without prior permission from the publisher. Copyright © 2012 Existem Events LtdPage 3Figure 23: What Do You Expect To Be The Biggest Threat To Your Earnings This Year?..................19Figure 24: How Positive Are You Regarding The Future Of Your Performance-Related ActivityWithin Your Business? ......................................................................................................................20Why?.................................................................................................................................................20Figure 25: Have You Taken Any Steps To Conform To The EU Privacy Directive?............................21If No, Why Not?.................................................................................................................................22
  4. 4. European Affiliate Marketing Landscape Report 2012In Association with WebgainsAll rights reserved. Existem Events Ltd grants you to store and print from this material for your own personal and commercial use.No part of this publication may be reproduced without prior permission from the publisher. Copyright © 2012 Existem Events LtdPage 4ForewordIt does not seem like a year since we launched the inaugural pan-Europeanaffiliate survey; partly because, as I suspect, we are all busy aligning ourresources to the incredible growth we have seen in the affiliate marketingindustry over the past decade. However, a whole year it has been, and theexciting thing about this year’s survey is that we now have data tocompare with last year’s survey and see how things have changed intwelve months. Two survey’s data certainly does not give us the fullpicture, but does allow us to start reflecting on potential trends and thedirection things are moving.The logic for carrying out the survey is indisputable. Our industry hasreached a size and a level of maturity that makes understanding the key drivers imperative and no-one underestimates the importance of the vital services affiliates perform. Only by such detaileddata collection and analysis can we plan our businesses to respond properly to any identified issues.We need to be able to structure our organisations to deliver what the market requires now and inthe future in order to ensure the growth continues. A detailed understanding of the nature,composition, promotional techniques and concerns of affiliates, both in their home markets, andacross the whole of Europe is absolutely essential.The survey this year was filled out by over 900 affiliates in 40 countries. Questions from the firstpart of the survey were aimed at discovering the key characteristics of active affiliates (gender, age,company size, earnings etc). Who exactly are these people at the heart of our industry? The surveyalso examines how international our European affiliates really are; and how much cross-borderpromotion takes place.Understanding how affiliates choose to promote our merchants is an essential part of the puzzle,and the survey examines in depth the tools, techniques and promotional biases employed. Thedifferences (and similarities) between countries paint a fascinating picture.Of particular value are the views expressed by the affiliates on how our industry is evolving and howthey see the future unfolding. Do affiliates see earnings rising or falling? Where are the threats toearnings? Which countries are optimistic and which are less so?I sincerely hope you enjoy reading and absorbing the results of this survey, and I want to take theopportunity to thank the affiliates who gave of their time to contribute to this most important pieceof analysis. I would also like to thank the team at PerformanceIN.com and Chris Johnson inparticular for writing and undertaking the survey, compiling the data, completing the analysis andfinally writing this report. I am sure you will find it compelling reading and a useful tool in planningyour business going forward.Managing Director, Webgains
  5. 5. European Affiliate Marketing Landscape Report 2012In Association with WebgainsAll rights reserved. Existem Events Ltd grants you to store and print from this material for your own personal and commercial use.No part of this publication may be reproduced without prior permission from the publisher. Copyright © 2012 Existem Events LtdPage 5Landscape Report 2012 Highlights- As much as 55% of European Affiliates really heavily on Search Engine Optimisation togenerate traffic to their website. Still a high amount but the figure is down from 65% in2011 as affiliates explore new avenues to generate traffic. Social Media (13%) and PaidSearch (12.7%) have increased in popularity compared to 2011 figures of 8% and 10%respectively.- Content-driven Affiliates are on the decrease across Europe, when compared to 2011’sfigures (figure 14) which was down 5% year-on-year.- Affiliate companies are expanding throughout Europe. Results show a decrease in affiliatebusinesses with 1-4 employees and an increase in businesses with 10-19 and 20-29employees respectively.- The biggest threat to Affiliate Earnings is still ‘Google Updates / Slaps’, however this figure isdown 5% on last years’ results.- Of Affiliate Window’s 15% share of votes as preferred network, 25% of votes came fromaffiliates based in European countries outside of the UK, despite not having a Europeanoperation in place.- The voucher affiliate model continues to grow despite an increasing saturation across themarket, up 4% year-on-year.- 43% of European affiliates are planning to expand internationally over the course of 2012,with the United States, United Kingdom, Spain, Germany and France being the most popularcountries for planned expansion.- The tightening of consumers’ purse strings can be seen in the big-earning respondents withall monthly commission-earning brackets (figure 12) over €500 dipping slightly.
  6. 6. European Affiliate Marketing Landscape Report 2012In Association with WebgainsAll rights reserved. Existem Events Ltd grants you to store and print from this material for your own personal and commercial use.No part of this publication may be reproduced without prior permission from the publisher. Copyright © 2012 Existem Events LtdPage 6- The proliferation of the voucher model continues (figure 14) with a rise in its usage byrespondents. These figures will doubtless fuel debate that how this model is developed willlikely shape the future of the industry over the next few years.- Social media’s standing in the spectrum of digital marketing is climbing, a fact that’sprobably in line with the heightening piles of investment cash being shovelled into servicessuch as Facebook and Pinterest.- Bizarrely - even after months and months of headlines - nearly half of all respondents haveyet to take steps towards conforming to the E-Privacy Directive (figure 22).
  7. 7. European Affiliate Marketing Landscape Report 2012In Association with WebgainsAll rights reserved. Existem Events Ltd grants you to store and print from this material for your own personal and commercial use.No part of this publication may be reproduced without prior permission from the publisher. Copyright © 2012 Existem Events LtdPage 7European Demographic Data, Geographies and Affiliate InformationFigure 1: GenderFigure 2: Age73%27%MaleFemale83%17%2011 ValuesMaleFemaleMaleFemaleUnder 18 18-24 25-34 35-54 55-64 65+20122011Under 18 18-24 25-34 35-54 55-64 Over 65UKFranceGermanySpain
  8. 8. European Affiliate Marketing Landscape Report 2012In Association with WebgainsAll rights reserved. Existem Events Ltd grants you to store and print from this material for your own personal and commercial use.No part of this publication may be reproduced without prior permission from the publisher. Copyright © 2012 Existem Events LtdPage 8Figure 3: When Did You Start Work In Affiliate Marketing?Figure 4: Which Of The Following Best Describes You?Figure 5: Including You, How Many Employees Work In Your Affiliate Business?19941995199619971998199920002001200220032004200520062007200820092010201120122012201150.70%26.70%22.60% I own a registered affiliatecompanyI work for an affiliate companyI do my affiliate activity part-time1-4 5-9 10-19 20-49 50-99 100-499 500-999 1000+201220111-4 5-9 10-19 20-49 50-99 100-499 500-1000 1000+UKFranceGermanySpain
  9. 9. European Affiliate Marketing Landscape Report 2012In Association with WebgainsAll rights reserved. Existem Events Ltd grants you to store and print from this material for your own personal and commercial use.No part of this publication may be reproduced without prior permission from the publisher. Copyright © 2012 Existem Events LtdPage 9Figure 6: Have You Been Financially Funded In Any Way?Figure 7: In Which Country Is Your Primary Operation?Other Countries Specified:9.80%90.20%YesNo11.61%88.17%2011 ValuesYesNo20122011Females working with the industry have jumped by 10% compared to our figures in 2011.Germany has the largest number of female-to-male ratio, followed closely by the UnitedKingdom.Results show a decrease in affiliate businesses with 1-4 employees and an increase inbusinesses with 10-19 and 20-29 employees respectively.
  10. 10. European Affiliate Marketing Landscape Report 2012In Association with WebgainsAll rights reserved. Existem Events Ltd grants you to store and print from this material for your own personal and commercial use.No part of this publication may be reproduced without prior permission from the publisher. Copyright © 2012 Existem Events LtdPage 10Figure 8: Which Territories Are You Planning To Expand Into During 2012?(43% are planning to expand)AustriaBelgiumDenmarkFinlandFranceGermanyGreeceItalyNetherlandsNorwayPolandPortugalROISpainSwedenSwitzerlandTurkeyUKUSAOther20122011UK France Germany Spain
  11. 11. European Affiliate Marketing Landscape Report 2012In Association with WebgainsAll rights reserved. Existem Events Ltd grants you to store and print from this material for your own personal and commercial use.No part of this publication may be reproduced without prior permission from the publisher. Copyright © 2012 Existem Events LtdPage 11Figure 9: Which Verticals Do YouWork In With Your Affiliate Activity?Figure 10: What Is Your PreferredPayment Model?Broadband & Internet Services Casino, Bingo & GamingFashion FinanceMobile Online datingRetail Travel & LeisureOtherCPA (Cost Per Acquisition) CPC (Cost Per Click)CPM (Cost Per Mille) Hybrid / TenancyRevenue Share OtherBroadband Fashion Casino,bingo &gamingFinance Mobile OnlinedatingRetail Travel &leisureOtherUK France Germany SpainCPA CPC CPM Hybrid/tenacy Revenue share OtherUK France Germany SpainFor those providing services in the casino & gaming sector, it was once considered a gold rush. Sincethe various US lawsuits that have hit service providers, though, interest in the sector has waned. Proofof this can be seen in the performance space where casino, bingo and gaming plays second fiddle tonearly all other sectors in Europe’s four biggest regions (figure 9).
  12. 12. European Affiliate Marketing Landscape Report 2012In Association with WebgainsAll rights reserved. Existem Events Ltd grants you to store and print from this material for your own personal and commercial use.No part of this publication may be reproduced without prior permission from the publisher. Copyright © 2012 Existem Events LtdPage 12Figure 11: How Would You Rate These Issues In Order Of Importance Within TheCountry You Conduct The Largest Amount Of Business?Figure 12: On Average, How Much Commission Do You Earn Per Month?20122011The tightening of consumers’ purse strings can be seen in the big-earning respondents withall monthly commission-earning brackets (figure 12) over €500 dipping slightly from 2011.
  13. 13. European Affiliate Marketing Landscape Report 2012In Association with WebgainsAll rights reserved. Existem Events Ltd grants you to store and print from this material for your own personal and commercial use.No part of this publication may be reproduced without prior permission from the publisher. Copyright © 2012 Existem Events LtdPage 13Figure 13: What Percentage Of Your Overall Company Turnover Is Attributed ToPerformance Marketing?UK France Germany Spain20122011
  14. 14. European Affiliate Marketing Landscape Report 2012In Association with WebgainsAll rights reserved. Existem Events Ltd grants you to store and print from this material for your own personal and commercial use.No part of this publication may be reproduced without prior permission from the publisher. Copyright © 2012 Existem Events LtdPage 14Figure 14: Which Affiliate Models Do You Work With?Figure 15: How Important To YourEarnings Is Contextual Advertising?(i.e Adsense)Figure 16:How Do You Generate TheMajority Of Traffic To Your Website?2012201121.20%3.50%25.10%27.30%23%Dont Use Contextual Advertising Not Very ImportantSemi-Important ImportantVery ImportantCo-Reg CPL LeadGenPaidSearchSEO SocialMediaOther20122011As much as 55% of European Affiliates rely heavily on Search Engine Optimisation togenerate traffic to their website (figure 16) This is still a high amount but the figure is downfrom 65% in 2011 as affiliates explore new avenues to generate traffic. Social Media (13%)and Paid Search (12.7%) have increased in popularity compared to 2011 figures of 8% and10% respectively.The proliferation of the voucher model continues (figure 14) with a rise in its usage byrespondents. These figures will doubtless fuel debate that the model will soon hit its ceiling.
  15. 15. European Affiliate Marketing Landscape Report 2012In Association with WebgainsAll rights reserved. Existem Events Ltd grants you to store and print from this material for your own personal and commercial use.No part of this publication may be reproduced without prior permission from the publisher. Copyright © 2012 Existem Events LtdPage 15Figure 17: Have You Used Pay Per Call?UKFranceGermanySpain11.70%88.30%YesNo9.00%91.00%YesNoUsage of pay per call (figure 17) services has seen a gradual upturn even with the lack oflocal offerings in Europe. Companies such as AdInsight, Ring Revenue and Freespee willlikely spur the technology to new strengths over the coming year.The proliferation of the voucher model continues (figure 14) with a rise in its usage byrespondents. These figures will doubtless fuel debate that the model will soon hit its ceiling.
  16. 16. European Affiliate Marketing Landscape Report 2012In Association with WebgainsAll rights reserved. Existem Events Ltd grants you to store and print from this material for your own personal and commercial use.No part of this publication may be reproduced without prior permission from the publisher. Copyright © 2012 Existem Events LtdPage 16Figure 18: Which Is Your Preferred Network You Currently Work With?Figure 19: Which 5 Of These Are Most Important To You When Working With AnAdvertiser / Merchant?Affiliate Window15% Affiliate Future2%Affilinet8%CommissionJunction7%Paid on Results2%TradeDoubler15%Webgains17%Zanox12%LinkShare3%Google AffiliateNetwork2%Other13%Webgains, Tradedoubler and Affiliate Window head up the list of preferred networks in thisyear’s list, with Webgains replacing Tradedoubler as most preferred for 2012 EU-Wide.New to the UK, Google Affiliate Network hasn’t been resting on the laurels it built in theUSA. In the two months since its official UK launch, the network has mustered a 2% marketshare (figure 18). The next 12 months for Google Affiliate Network will be of great interestto performance industry onlookers.
  17. 17. European Affiliate Marketing Landscape Report 2012In Association with WebgainsAll rights reserved. Existem Events Ltd grants you to store and print from this material for your own personal and commercial use.No part of this publication may be reproduced without prior permission from the publisher. Copyright © 2012 Existem Events LtdPage 17Figure 20: Which 5 Attributes Would Encourage You To Work More Closely WithAn Advertiser?Figure 21: How Would You Rate The Quality Of The E-mails You Receive FromAgencies, Advertisers and Networks?How can a Network / Advertiser / Agency improve their relationship with you?“Better reporting tools so that we can providemore accurate data to our users.”“Provide deeplinks to the offers they wantaffiliates to promote. I still see Voucher Codesreleased without me receiving an email andsometimes without a ready-made link.”“Making account managers more accessible.” “By bringing on more big-brand advertisers.”“More support, advice and tips on how to turntraffic into sales.”“Transparency on all levels from engagement toprofit.”4.20%18.40%46%27.60%3.80%Very poor Poor Neutral Good Very good
  18. 18. European Affiliate Marketing Landscape Report 2012In Association with WebgainsAll rights reserved. Existem Events Ltd grants you to store and print from this material for your own personal and commercial use.No part of this publication may be reproduced without prior permission from the publisher. Copyright © 2012 Existem Events LtdPage 18“By offering more technology solutions that canhelp manipulate the volumes of data we haveaccess to.”“By having a website that is easy to understandand use for beginners, including a clearexplanation of all terms (acronyms).”“Maintaining three-way meetings between theadvertiser, the network itself and the affiliate.”“Giving me access to stats on the go. A mobileversion / app would suffice!”“By respecting their payment terms!” “By working with us as introducers of business,not minions.”“Transparency on deals, codes, and re-activity” “More transparency in the validation of sales.”Figure 22: Do You Think Your Commissions Earned In 2012 Will Be More Or LessThan In 2011?2012 2011UK France Germany Spain
  19. 19. European Affiliate Marketing Landscape Report 2012In Association with WebgainsAll rights reserved. Existem Events Ltd grants you to store and print from this material for your own personal and commercial use.No part of this publication may be reproduced without prior permission from the publisher. Copyright © 2012 Existem Events LtdPage 19Figure 23: What Do You Expect To Be The Biggest Threat To Your Earnings ThisYear?20122011UKFranceGermanySpain
  20. 20. European Affiliate Marketing Landscape Report 2012In Association with WebgainsAll rights reserved. Existem Events Ltd grants you to store and print from this material for your own personal and commercial use.No part of this publication may be reproduced without prior permission from the publisher. Copyright © 2012 Existem Events LtdPage 20Figure 24: How Positive Are You Regarding The Future Of Your Performance-Related Activity Within Your Business?Why?Positive - “I’m only scratching the surface of what’spossible so I’m confident that with a little work myaffiliate earnings will increase.”Positive - “We still have a margin largeenough to evolve throughout the course ofthis year.”Negative – “The effort becomes too large relative to Neutral – “Difficulty in increasing organic22.30%48.60%25.30%3% 0.60%Very positive Positive NeutralNegative Very negative19.12%41.77%35.75%3% 0.71%Very positive Positive NeutralNegative Very negativeVery positive Positive Neutral Negative Very negativeSpainGermanyFranceUKGoogle updates and slaps are going concerns for UK survey participants, more so than anyother country (figure 23).France’s big fear is the culling of affiliates on programmes (figure 23).
  21. 21. European Affiliate Marketing Landscape Report 2012In Association with WebgainsAll rights reserved. Existem Events Ltd grants you to store and print from this material for your own personal and commercial use.No part of this publication may be reproduced without prior permission from the publisher. Copyright © 2012 Existem Events LtdPage 21my earnings.” traffic.”Very Positive – “Many advertisers and biggercompanies are only just getting started.”Very Positive – “Increasingly people areprocessing more and more online. This isonly good news for us.”Positive – “Because Advertisers will always dependon the support of other marketing channels.”Neutral – “It is difficult to predict the futurein a rapidly changing environment.”Negative – “Frequent Google updates and never-ending internet-related legislation worldwide.”Very Negative - “With more big companiesentering the space causes us problems.”Figure 25: Have You Taken Any Steps To Conform To The EU Privacy Directive?57.60%42.40%YesNo020406080UK France Germany SpainYesNoInterestingly more respondents are positive about the future of their performance-related activity(figure 21) that not. The Spanish seem the most cynical of the larger four countries.Compared to 2011’s figures, more respondents were either ‘very positive’ or ‘positive’ regarding thefuture of their Performance Marketing Activity.
  22. 22. European Affiliate Marketing Landscape Report 2012In Association with WebgainsAll rights reserved. Existem Events Ltd grants you to store and print from this material for your own personal and commercial use.No part of this publication may be reproduced without prior permission from the publisher. Copyright © 2012 Existem Events LtdPage 22If No, Why Not?“Haven’t got to grips with it yet. Need to analysesite.”“I want to see how bigger players deal with it.”“Fear it will reduce traffic” “I don’t think they will take anybody to court,and eventually it will be dropped.”“Awaiting more precise information” “I did not know about this – but will look into itnow!”“Lack of information” “Ignorance”“We are not aware of it” “Because it is not clear, it’s an ambiguous law.”Bizarrely - even after months and months of headlines - nearly half of all respondents have yetto take steps towards conforming to the E-Privacy Directive (figure 22).

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