2013 Industry survey Dgm affiliate survey final chris garner

2013
AUSTRALIAN AFFILIATE
BENCHMARKING SURVEY
Survey ResultsAn independent study into the current usage and intention
of Australian companies engaging in affiliate marketing,
commissioned by dgmAustralia and conducted by edentify
in September 2013
Supported By

2For more information contact enquiries@dgm-au.com | +61 2 8569 0000 | www.dgm-au.com
COntents
Executive Summary / Five Key Findings ........................................................................ 03
Finding 1: There are signs of solid growth for both agencies and direct advertisers ............ 04
Finding 2: Fashion Retailers are the newcomers while Finance are the old-hands .............. 14
Finding 3: Coupons, cash back and loyalty/rewards are growing ....................................... 27
Finding 4: Lots of new entrants indicate more room for growth......................................... 30
Finding 5: Mobile has more potential ........................................................................... 33
Methodology .............................................................................................................. 36
About dgm
dgm works with Australia’s leading advertisers, web site publishers and agencies to devise and
deliver online marketing campaigns across key areas of search engine marketing, affiliate marketing
and display advertising. dgm’s clients have access to sophisticated proprietary technology and are
guided by experienced account management and consultancy teams, to achieve high-performing
online marketing campaigns that fulfill their business objectives such as more leads, more sales and
greater brand awareness.
Web: www.dgm-au.com
Follow: http://twitter.com/dgmAustralia
Facebook: http://www.facebook.com/dgmaustralia
LinkedIn: http://www.linkedin.com/company/684702?trk=NUS_CMPY_FOL-nhre
About edentify
Edentify focuses on developing consumer insight technology, finding new and innovative ways of
collecting information and providing businesses with the tools to quickly understand and analyse
results.
We combine innovations in technology with a high quality service performed by a dedicated research
project management team.
We have been developing our research tools and service in Australia and overseas since the beginning
of 2000, being one of the first companies specialising in online research in Australia.
Web: http://www.edentify.com.au

Executive
Summary
dgm is pleased to announce the results of our second Australian Affiliate Benchmark Survey. The study,
conducted by edentify, commissioned by dgm and supported by PerformanceIN had a total of 156
respondents, with 39 respondents from media agencies and 117 from client side.
This is the second annual study into the use of affiliate marketing by media agencies and advertisers
in Australia. This year, the study received a total of 156 responses, with media agencies accounting for
39 respondents and direct clients 117 respondents.
This year, a series of questions on mobile were added, as that channel continues to grow in
importance.
The dominant sectors among direct clients were Finance and Retail, with a high number of new
entrants this year from Fashion Retail.
Overall indications are that there is still plenty of room for growth in affiliate marketing as spending
levels and intentions for the future remain strong.
Key Findings
Finding 1
There are signs of solid growth for the affiliate marketing channel across both media agencies and
direct clients
Finding 2
Fashion Retailers are the newcomers to the affiliate marketing channel, while Finance are the old-hands
Finding 3
Coupons, cash back, and loyalty/rewards have experienced growth in popularity as types of affiliate
marketing being undertaken
Finding 4
The high number of new entrants to affiliate marketing indicates there is more room for growth in the
channel
Finding 5
There is more potential for the mobile channel to deliver more sales, as well as more companies to
adopt a mobile optimised web presence

Finding 1
There are solid signs of growth for the Affiliate Marketing sector overall. For the past year, 65% of
respondents said they increased spend in the channel, and 18% said their spend remained the same.
This is slightly higher than last year’s results of 63% and 14% respectively.
Expectations for the coming year are also strong, with around 6 in 10 respondents anticipating
an increase in spend for 2014. This is similar for both agencies and direct clients. Overall, 17% of
respondents expect their spend to remain static for 2014.
Compared to other online channels, 43% of respondents claim an increase in spend on affiliate over
2012 (vs 40% last year). For agencies, there has been a drop in those claiming an increase in spend
on affiliate over other online channels, at 44% compared to 61% in 2012, which may be explained
by agencies funnelling more spend into other Performance Channels including their trading desks.
However for direct clients there has been an increase in those claiming greater affiliate spend at the
expense of other online channels, at 43% this year compared to 29% last year.
Average spend is down for both agencies and direct clients, with 24% spending over $25,000 per
month compared to 44% in 2012. However, there is a much higher number of respondents spending
<$5,000 per month in this year’s survey, at 47% of respondents compared to 22% in 2012, and
importantly, a much higher number of respondents saying they have engaged in affiliate marketing for
less than a year (29% in 2013 vs 12% in 2012). This indicated a significant influx of new users to the
channel and accounts for the drop in average spend.
Proportion attributed to the channel
This year, the gap has narrowed between agencies and direct clients when it comes to the amount of
their budget allocated to the affiliate channel. While in 2012, 67% of agencies were spending upwards
of 10% of their budgets on affiliate compared to 46% of direct clients, for 2013 the results are 48%
for agencies and 39% for direct clients.
Cap or no cap
The number of respondents who are capping their monthly spend on affiliate has halved since last
year, to 22%. The most significant change in attitudes towards affiliate budgets has been in agencies,
where now just 22% of respondents are capping budgets compared to 63% last year. For direct clients,
capping has dropped from 34% of respondents in 2012 to 21% this year.
While there has been a slight decrease in respondents allocating their affiliate spend from the
marketing budget, this remains largely true across the board with 79% saying their affiliate spend
comes from marketing compared to 83% last year. However, the decrease in capped spending appears
to be recognition that the affiliate channel is more closely related to sales than marketing – as
publishers are only paid when transactions are verified.
Overall, three in four respondents indicated they currently engage in affiliate marketing, which is a
slight drop from last year. While direct clients are still more likely to engage in affiliate marketing than
agencies, the gap has narrowed, with 74% of agencies saying they engage in affiliate marketing this
year compared to 69% last year. The gap between direct clients and agencies has dropped to 7 points,
compared to 12 points last year.
There are signs of solid growth for the affiliate marketing
channel across both media agencies and direct clients

Usage of Affiliate
Marketing
❱ In total, three quarters of respondents indicated that they currently engage in affiliate marketing. This
has dropped slightly from last year.
❱ As last year, direct clients are more likely to engage in affiliate marketing than agencies, however this
gap has narrowed since last year to 7%pts (vs 12%pts).
Figure One: “Do you currently engage in affiliate marketing?”
ffiliate
Marke,ng
Use
by
Company:
2012
vs.
2013

2012
n=134/2013
n=156

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Total
Agency
Direct

Q5:
Do
you
currently
engage
in
Affiliate
Marke,ng?

2012

2013

•  In
total,
three
quarters
of
respondents
indicated
that
they
currently
engage
in
Affiliate
MarkeOng.

This
has
dropped
slightly
from
last
year.

•  As
last
year,
direct
clients
are
more
likely
to
engage
in
Affiliate
MarkeOng
than
agencies,
however

this
gap
has
narrowed
since
last
year
to
7%pts
(vs
12%pts).

Spend
❱ The proportion of advertisers spending $25k plus is down year on year, with 24% spending over
$25k, compared to 44% in 2012.
❱ This trend applies to both agencies and direct clients.
Figure Two: “What is your average monthly spend on affiliate marketing?”
❱ Last year’s gap in allocation of spend between agencies and direct clients has narrowed, with 48% of
agencies attributing 10% or more, compared to 39% of direct clients.
Figure Three: “What percentage of your online marketing spend is attributed to the affiliate channel?”
0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Total
2012
Total
2013
Agency
2012
Agency
2013
Direct
2012
Direct
2013

Q8:
%
of
online
marke,ng
spend
aSributed
to
the

affiliate
channel

51%+

31-‐50%

21-‐30%

10-‐20%

10%

Propor,on
of
online
spend
aSributed
to
the
Affiliate
Channel
by
Company
Type:

2012
vs.
2013

Base
2012:
Total
n=98,
Agency
n=37.
Direct
n=67

Base
2013:
Total
116;
Agency
n=27;
Direct
n=89

•  Last
year’s
gap
in
allocaOon
of
spend
between
agencies
and
direct
clients
has
narrowed,
with
48%

of
agencies
airibuOng
10%
or
more,
compared
to
39%
of
direct
clients.
This
is
mainly
due
to
an

increase
in
agencies
spending
under
10%.

Average
Monthly
Spend
by
Company
Type:
2012
vs.
2013

Total
2012
Total
2013
Agency

2012

Agency

2013

Direct
2012
Direct
2013

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Q7:
Average
Monthly
Spend
on
Affiliate
Marke,ng

$101k
+

$51k-‐$100k

$26k-‐$50k

$11k-‐$25k

$6k-‐$10k

$0k-‐$5k

Nil

Base
2012
n=104;
Agency
n=37;
Direct
n=67

Base
2013
n=116;
Agency
n=27;
Direct
n=89

•  Average
spend
is
down
year
on
year,
with
24%
spending
over
$25k,
compared
to
44%
in
2012.

•  This
trend
applies
to
both
agencies
and
direct
clients.

❱ The drop in capping on spending is most evident among agencies, from 63% in 2012 to just 22%.
❱ The number of agencies and direct clients who cap their spending is now equal.
Figure Four: “Do you cap your monthly affiliate spend?”
❱ As in 2012, the majority of respondents indicated an increase in spend on affiliate marketing during
the past year.
❱ This applies equally across agencies and direct clients.
Figure Five: “Over the past year, has your affiliate marketing spend…?”
Change
in
Spend
by
Company
Type:
Past
Year

Base
2012

n=94;
Agency
n=34;
Client
n
=60

Base
2013
n=116;
Agency
n=27;
Direct
n=89

•  As
in
2012,
the
majority
of
respondents
indicated
an
increase
in
spend
on
affiliate
markeOng
during

the
past
year.

•  This
applies
equally
across
agencies
and
direct
clients.

Total
2012
Total
2013
Agency
2012
Agency
2013
Direct
2012
Direct
2013

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Q10:
Over
the
past
year,
has
your
affiliate
marke,ng
spend:

Not
sure

Decreased

Stayed
the
same

Increased

Cap
on
Monthly
Affiliate
Spend
by
Company
Type:
2012
vs.
2013

Base
2012:
Total
n=98,
Agency
n=37.
Direct
n=67

Base
2013:
Total
116;
Agency
n=27;
Direct
n=89

Total
2012

Total
2013
Agency
2012
Agency
2013
Direct
2012
Direct
2013

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Q9:
Do
you
cap
your
monthly
affiliate
spend?

No

Yes

•  The
drop
in
capping
on
spending
is
most
evident
among
agencies,
from
63%
in
2012
to
just
22%.

•  The
number
of
agencies
and
direct
clients
who
cap
their
spending
is
now
equal.

Spend

❱ Positivity about future spend continues from last year, with 6 in 10 confident that spending will go
up over the next year – this applies to both agencies and direct clients.
❱ Direct clients intending to increase investment year on year increased from 53% in 2012 to 61% in
2013.
❱ The opposite was true of agencies with the number of respondents reporting an intent to increase
spend dropping from 71% in 2012 to 63% in 2013.
Figure Six: “Thinking about your affiliate marketing spend over the next year, will it…?”
❱ Fewer agency respondents claim an increase in spend compared to last year, however there has been
an increase in direct clients’ relative spend – 43% now claim an increase in spend compared to 29%
in 2012.
Figure Seven: “Has your percentage of affiliate marketing spend increased in relation
to your other online spend?”
Increase
in
Spend
on
Affiliate
Marke,ng
vs.
Other
Online
Spend
by
Company:
2012
vs.
2013

Total
2012
Total
2013
Agency
2012
Agency
2013
Direct
2012
Direct
2013

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Q12:
Has
your
%
of
affiliate
marke,ng
spend
increased

in
rela,on
to
your
other
online
spend?

Yes

Not
sure

No

•  Fewer
agency
respondents
claim
an
increase
in
spend
compared
to
last
year,
however
there
has

been
an
increase
in
direct
client’s
relaOve
spend
–
43%
now
claim
an
increase
in
spend
compared

to
29%
in
2012.

Base
2012

n=92;
Agency
n=33;
Direct
n=59

Base
2013:
n=116;

Agency
n=27;
Direct
n=89

Change
in
Spend
by
Company
Type:
Next
Year

Base
2012

n=94;
Agency
n=34;
Client
n
=60

Base
2013
n=116;
Agency
n=27;
Direct
n=89

•  PosiOvity
about
future
spend
conOnues
from
last
year,
with
6
in
10
confident
that
spending
will
go

up
over
the
next
year
–
this
applies
to
both
agencies
and
direct
clients.

Total
2012
Total
2013
Agency
2012
Agency
2013
Direct
2012
Direct
2013

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Q11:
Thinking
about
your
affiliate
marke,ng
spend
over

the
next
year,
will
it:

Not
sure

Stay
the
same

Go
down

Go
up

Spend

❱ Agency respondents remain slightly more likely to take their affiliate marketing spend from marketing
than direct clients.
❱ eCommerce was added as a category in this year’s survey due to an increase in retail clients utilising
the channel.
Figure Eight: “Which department does your affiliate marketing budget currently come from?”
Affiliate
Marke,ng
Budget
by
Company
Type:
2012
vs.
2013

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Total
2012
Total
2013
Agency
2012
Agency
2013
Direct
2012
Direct
2013

Q13:
Which
department
does
your
affiliate
marke,ng

budget
currently
come
from?

Other

eCommerce

Product

Sales

MarkeOng

•  Agency
respondents
remain
slightly
more
likely
to
take
their
Affiliate
MarkeOng
spend
from

markeOng
than
direct
clients.

Base
2012

n=92;
Agency
n=33;
Direct
n=59

Base
2013:
n=116;

Agency
n=27;
Direct
n=89

Spend

Number of
affiliate networks
❱ The majority of both agencies and direct clients use 1-2 affiliate networks to manage their
campaigns.
❱ Around 1 in 5 of both agencies and direct clients use four or more networks.
Figure Nine: “How many affiliate networks manage your current campaign?”
Number
of
Affiliate
Networks
by
Company
Type:
2012
vs
2013

•  The
majority
of
both
agencies
and
direct
clients
use
1-‐2
affiliate
networks
to
manage
their

campaigns.

•  Around
1
in
5
in
both
agencies
and
direct
clients
manage
their
own
campaigns.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Total
2012
Total
2013
Agency
2012
Agency
2013
Direct
2012
Direct
2013

Q16:
How
many
affiliates
manage
your
current
campaign?

We
don't
have
a
current

campaign

None,
we
manage
our
own

program

4
or
more

3

2

1

Base
2012

n=90;
Agency
n=31;
Direct
n=59

Base
2013:
n=116;

Agency
n=27;
Direct
n=89

De-duplication
❱ 84% of agencies indicated that they de-duplicate affiliate sales against other online channels.
This compares to just 64% for direct clients.
❱ There were no major changes between agencies and direct year on year.
Figure Ten: “Do you de-duplicate affiliate sales against other online channels?”
De-‐duplicate
Affiliate
Sales
by
Company
Type:
2012
vs.
2013

Total
2012
Total
2013
Agency
2012
Agency
2013
Direct
2012
Direct
2013

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Q17:
Do
you
de-‐duplicate
affiliate
sales
against
other

online
channels?

No

Yes

•  84%
of
agencies
indicated
that
they
de-‐duplicate
affiliate
sales
against
other
online
channels.

This
compares
to
just
64%
for
direct
clients.

Base
2012

n=89;
Agency
n=31;
Direct
n=58

Base
2013:
n=116;

Agency
n=27;
Direct
n=89

Likelihood of recommending
affiliate marketing
❱ 77% of all respondents said they would recommend affiliate marketing – a slight decrease from 2012
(85%).
❱ Perhaps not surprisingly, those who use affiliate marketing would be more likely to recommend it
than non users (84% vs. 58%).
Figure Eleven: “How likely are you to recommend affiliate marketing to someone in a similar
position to you?”
❱ As in 2012, agencies are more likely to recommend affiliate marketing than direct clients, however
the gap is marginally smaller in 2013 (10%pt difference in 2013, compared to 12%pts in 2012).
Figure Twelve: “How likely are you to recommend affiliate marketing to someone in a similar
position to you?”
Likelihood
of
Recommending
Affiliate
Marke,ng
by
Users/Non-‐users:
2012
vs.
2013

Do
not
use
Affiliate
MarkeOng
2013

Do
not
use
Affiliate
MarkeOng
2012

Use
Affiliate
MarkeOng
2013

Use
Affiliate
MarkeOng
2012

Total
2013

Total
2012

0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%

Q18:
How
likely
are
you
to
recommend
affiliate
marke,ng

to
someone
in
a
similar
posi,on
to
you?

Very
likely
Likely
Neutral
Unlikely
Very
unlikely

•  77%
of
all
respondents
said
they
would
recommend
Affiliate
MarkeOng
-‐

a
slight
decrease
from

2012
(85%).

•  Perhaps
not
surprisingly,
those
who
use
Affiliate
MarkeOng
would
be
more
likely
to
recommend

it
than
non
users
(84%
vs.
58%).

Base
2012
n=134;
Users
n=109;
Non-‐Users
n=25

Base
2013:
n=156;
Users
n=116;
Non-‐Users
n=40

Likelihood
of
Recommending
Affiliate
Marke,ng
by
Company
Type:
2012
vs.
2013

Direct
2013

Direct
2012

Agency
2013

Agency
2012

Total
2013

Total
2012

0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%

Q18:
How
likely
are
you
to
recommend
affiliate
marke,ng

to
someone
in
a
similar
posi,on
as
you?

Very
likely
Likely
Neutral
Unlikely
Very
unlikely

•  As
in
2012,
agencies
are
more
likely
to
recommend
Affiliate
MarkeOng
than
direct
clients,

however
the
gap
is
marginally
smaller
in
2013
(10%pt
difference
in
2013,
compared
to
12%pts
in

2012).

Base:
Total
2012
n=108;
Agency
n=42;
Direct
n=66

Knowledge of
affiliate marketing
❱ Perhaps unsurprisingly, CEOs at companies that don’t currently use affiliate marketing have less
knowledge of it.
❱ There is little difference year on year in CEOs’ knowledge of affiliate marketing.
Figure Thirteen: “How much knowledge of affiliate marketing does your CEO have?”
❱ Knowledge remains higher among direct clients – 58% of direct clients think their CEO has good or
excellent knowledge of affiliate marketing, compared to 49% of those at agencies.
Figure Fourteen: “How much knowledge of affiliate marketing does your CEO have?”
Knowledge
of
Affiliate
Marke,ng
by
Users/Non-‐users:
2012
vs.
2013

Do
not
use
Affiliate
MarkeOng
2013

Do
not
use
Affiliate
MarkeOng
2012

Use
Affiliate
MarkeOng
2013

Use
Affiliate
MarkeOng
2012

Total
2013

Total
2012

0%
20%
40%
60%
80%
100%

Q19:
How
much
knowledge
of
affiliate
marke,ng
does

your
CEO
have?

No
knowledge
Poor
knowledge
Good
knowledge
Excellent
knowledge
I
don't
know

•  Perhaps
unsurprisingly,
CEOs
at
companies
that
don’t
currently
use
Affiliate
MarkeOng
have
less

knowledge
of
it.

•  There
is
liile
difference
year
on
year
in
CEO’s
knowledge
of
Affiliate
MarkeOng.

Base
2012
n=134;
Users
n=109;
Non-‐Users
n=25

Base
2013:
n=156;
Users
n=116;
Non-‐Users
n=40

Knowledge
of
Affiliate
Marke,ng
by
Company
Type:
2012
vs.
2013

Direct
2013

Direct
2012

Agency
2013

Agency
2012

Total
2013

Total
2012

0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%

Q19:
How
much
knowledge
of
affiliate
marke,ng
does

your
CEO
have?

No
knowledge
Poor
knowledge
Good
knowledge
Excellent
knowledge
I
don't
know

•  Knowledge
remains
higher
among
direct
clients
-‐
58%
of
direct
clients
think
their
CEO
has
good

or
excellent
knowledge
of
Affiliate
MarkeOng,
compared
to
49%
of
those
at
agencies.

Base:
Total
2012
n=108;
Agency
n=42;
Direct
n=66

Total
2013
n=156;
Agency
n=39;
Direct
n=117

Finding 2
Fashion Retailers are the newcomers to the affiliate
marketing channel, while Finance are the old-hands
There are strong signs of growth in the Fashion Retail sector. While these respondents indicated the
lowest proportion of their spend in the affiliate channel, the sector also has the highest number of
respondents indicating they had been engaging in affiliate marketing for less than a year (42%). They
are also the category most likely not to engage in affiliate marketing with 30% not utilising the channel,
more than any other reported category.
They were the sector most likely to take their affiliate spend from their ecommerce budget, suggesting
a closer link between affiliate and sales, rather than marketing which is still the most common across
the board. Similarly, 85% said they do not cap their spend in the channel, which is slightly above
average.
Half of the Fashion Retail respondents indicated they are spending $5,000 per month in the affiliate
channel – reflective of the number of new entrants in the past year – while 73% said their affiliate
spend represented less than 10% of their overall online spend.
Fashion Retailers like a wide range of affiliate types, with content and aggregators the most popular at
58% of respondents, followed by comparison engines, coupons, loyalty/rewards and cashback.
This was the first year the survey separated Fashion Retail from other Online Retail, on the back of
significant growth in new entrants, and spend, in the sector. This means there are no comparisons to be
made from the previous survey.
The most mature sector in affiliate marketing is Finance. This sector engages in the highest
amounts of affiliate marketing, spends the most in the channel, is the most likely to manage their own
campaigns and most likely to de-duplicate affiliate sales against other online channels.
There has been an increase in Finance respondents engaging in affiliate marketing, with 88%
compared to 82% in 2012. Spend is the highest of any sector, with a third of Finance respondents
saying they spend $100,000 a month on affiliate marketing. This is double the response from last
year, and significantly more than the 47% of respondents overall who spend $5,000 per month.
One in 10 Finance respondents allocates half of their budget to affiliate marketing, compared to just
2% of respondents overall, while 68% of Finance respondents spend more than 10% of their online
budget on affiliate. This compares to around 40% for respondents overall. Additionally, almost 6 in 10
Finance respondents said they increased their affiliate spend from the previous year.
This sector has been engaging in affiliate marketing longer than any other sector, with 34% of finance
respondents saying they have used the channel for 6+ years, and two-thirds having used the channel for
4+ years.
Aggregators and comparison engines are by far the most popular types of affiliate marketing that
Finance respondents engage in, while the other sectors including Fashion Retail, Online Retail and
Consumer electronics prefer a wider range of affiliate types.

Usage of Affiliate
Marketing
❱ Those operating in the Finance sector are more likely to engage in affiliate marketing than those in
other sectors.
❱ Respondents from the Fashion Retail category were less likely to engage in affiliate marketing with
30% not using the channel.
Figure Fifteen: “Do you currently engage in affiliate marketing?
❱ Those operating in the Finance sector are the most likely to engage in Affiliate Marketing (88%).
❱ Engagement in Affiliate Marketing has increased year on year in the finance and fashion/online retail
sectors, but decreased in consumer electronics and other sectors.
Figure Sixteen: “Do you currently engage in affiliate marketing?”
Affiliate
Marke,ng
Use
by
Sector:
2013

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Finance
Online
Retail
Consumer

Electronics

Fashion
Retail
Other

Q5:
Do
you
currently
engage
in
Affiliate
Marke,ng?

Yes

No

•  Those
operaOng
in
the
Finance
sector
are
more
likely
to
engage
in
Affiliate
MarkeOng
than
those
in

other
sectors.

Base:
n=156

Affiliate
Marke,ng
Use
by
Sector:
2012
vs.
2013

•  Those
operaOng
in
the
Finance
sector
are
the
most
likely
to
engage
in
Affiliate
MarkeOng
(88%).

•  Engagement
in
Affiliate
MarkeOng
has
increased
year
on
year
in
the
finance
and
fashion/online

retail
sectors,
but
decreased
in
consumer
electronics
and
other
sectors.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Finance/
Insurance
Fashion/Online

Retail

Consumer

Electronics

Other

Q5:
Do
you
currently
engage
in
Affiliate
Marke,ng?

2012

2013

Spend
❱ Overall, spend on affiliate marketing is highest in the financial sector, with a third spending over
$100k per month.
❱ The most common level of spend is $0-$5k, with 47% spending in this bracket each month.
❱ 50% of Fashion Retailers and 57% of Online Retailers spend between $0-$5k a month.
Figure Seventeen: “What is your average monthly spend on affiliate marketing?”
❱ Overall, higher spends on affiliate marketing have decreased year on year, with 24% spending over
$25k, compared to 44% in 2012.
❱ However, top level spend in the finance sector has doubled year on year, with a third now spending
over $100k on affiliate marketing.
Figure Eighteen: “What is your average monthly spend on affiliate marketing?”
Average
Monthly
Spend
by
Sector:
2013

Total

Finance/

Insurance

Fashion

Retail

Online
Retail
Consumer

Electronics

Other

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Q7:
Average
Monthly
Spend
on
Affiliate
Marke,ng

$101k
+

$51k-‐$100k

$26k-‐$50k

$11k-‐$25k

$6k-‐$10k

$0k-‐$5k

Nil

•  Overall,
spend
on
Affiliate
MarkeOng
is
highest
in
the
financial
sector,
with
a
third
spending
over

$100k
per
month.

•  The
most
common
level
of
spend
is
$0-‐$5k,
with
47%
spending
in
this
bracket
each
month.

Base:
Total
n=116,
Finance
n=21.
Fashion
n=26;
Online
n=56;
Consumer
Elec
n=20;

Other
n=41

Average
Monthly
Spend
by
Sector:
2012
vs.
2013

Total
2012
Total
2013
Finance
2012
Finance
2013
Fashion/

Online
Retail/

Consumer

Electronics

2012

Fashion/

Online
Retail/

Consumer

Electronics

2013

Other
2012
Other
2013

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Q7:
Average
Monthly
Spend
on
Affiliate
Marke,ng

$101k
+

$51k-‐$100k

$26k-‐$50k

$11k-‐$25k

$6k-‐$10k

$0k-‐$5k

Nil

•  Overall,
higher
spends
on
Affiliate
MarkeOng
have
decreased
year
on
year,
with
24%
spending
over

$25k,
compared
to
44%
in
2012.

•  However,
top
level
spend
in
the
finance
sector
has
doubled
year
on
year,
with
a
third
now
spending

over
$100k
on
Affiliate
MarkeOng.

❱ Around 40% of those who engage in affiliate marketing allocate at least 10% of their online
marketing spend to this channel.
❱ The finance sector attributes the highest proportion of spend to affiliate marketing, with two thirds
allocating at least 10%, and 10% allocating over half their budget. The lowest is fashion retail, with
just 27% allocating over 10%, and 73% allocating under 10%.
Figure Nineteen: “What percentage of your online marketing spend is attributed to the affiliate channel?
❱ There has not been much change year on year across the sectors, although higher percentages of
spend have decreased this year among ‘other’ sectors.
Figure Twenty: “What percentage of your online marketing spend is attributed to the affiliate channel?
0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Total
Finance/

Insurance

Fashion
Retail
Online
Retail
Consumer

Electronics

Other

Q8:
%
of
online
marke,ng
spend
aSributed
to
the

affiliate
channel

51%+

31-‐50%

21-‐30%

10-‐20%

10%

Propor,on
of
online
spend
aSributed
to
the
Affiliate
Channel
by
Sector:
2013

•  Around
40%
of
those
who
engage
in
Affiliate
MarkeOng
allocate
at
least
10%
of
their
online
markeOng

spend
to
this
channel.

•  The
finance
sector
aiributes
the
highest
proporOon
of

spend
to
Affiliate
MarkeOng,
with
two
thirds

allocaOng
at
least
10%,
and
10%
allocaOng
over
half
their
budget.

The
lowest
is
fashion
retail,
with

just
27%
allocaOng
over
10%,
and
73%
allocaOng
under
10%.

Base:
Total
n=116,
Finance
n=21.
Fashion
n=26;
Online
n=56;
Consumer
Elec
n=20;

Other
n=41

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Total
2012
Total
2013
Finance
2012
Finance
2013
Fashion/

Online
Retail/

Consumer

Electronics

2012

Fashion/

Online
Retail/

Consumer

Electronics

2013

Other
2012
Other
2013

Q8:
%
of
online
marke,ng
spend
aSributed
to
the

affiliate
channel

51%+

31-‐50%

21-‐30%

10-‐20%

10%

Propor,on
of
online
spend
aSributed
to
the
Affiliate
Channel
by
Sector:

2012
vs.
2013

Base
2012
n=104;
Finance
n=46;
Retail
n=45;
Other
n=43

Base
2013
n=116;
Finance
n=21;
Retail
n=82;
Other
n=41

•  There
has
not
been
much
change
year
on
year
across
the
sectors,
although
higher
percentages
of

spend
have
decreased
this
year
among
‘other’
sectors.

Spend

❱ Overall, over 75% stated that they do not cap their monthly affiliate spend.
❱ The consumer electronics sector has a slightly greater propensity to cap its spend than other sectors,
at 30%.
Figure Twenty-one: “Do you cap your monthly affiliate spend?”
❱ Compared to last year, there has been a drop in capping on monthly spend across the board.
❱ Both the Finance and combined Fashion/Online Retail categories shifted 32 percentage points in
favour of not capping year on year.
Figure Twenty-two: “Do you cap your monthly affiliate spend?”
Cap
on
Monthly
Affiliate
Spend
by
Sector:
2013

•  Overall,
over
¾
stated
that
they
do
not
cap
their
monthly
affiliate
spend.

•  The
consumer
electronics
sector
has
a
slightly
greater
propensity
to
cap
its
spend
than
other

sectors.

Total
Finance/

Insurance

Fashion
Retail
Online
Retail
Consumer

Electronics

Other

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Q9:
Do
you
cap
your
monthly
affiliate
spend?

No

Yes

Base
2013:
Total
n=116,
Finance
n=21,
Fashion
Retail
n=26,
Online
Retail
n=56,
Consumer
Elec
n=20,
Other
n=41

Cap
on
Monthly
Affiliate
Spend
by
Sector:
2012
vs.
2013

Base
2013:
Total
n=116,
Finance
n=21,
Fashion
Retail
n=26,
Online
Retail
n=56,
Consumer
Elec
n=20,
Other
n=41

Total
2012
Total
2013
Finance
2012
Finance
2013
Fashion/

Online

Retail/

Consumer

Electronics

2012

Fashion/

Online

Retail/

Consumer

Electronics

2013

Other
2012
Other
2013

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Q9:
Do
you
cap
your
monthly
affiliate
spend?

No

Yes

•  Compared
to
last
year,
there
has
been
a
drop
in
capping
on
monthly
spend
across
the
board.

Spend

❱ Over the past year, 95% of spend in the finance sector increased or stayed the same. This is in
comparison to between 73-87% in the other sectors. However, only half of those in the finance sector
are predicting an increase in spend next year – this is lower than the other sectors, where 60-66%
are confident that spending will go up.
Figure Twenty-three: “In terms of affiliate marketing over the past year, has your spend…?”
Figure Twenty-four: “Now thinking about your spend over the next year, will it…?”
Change
in
Spend
by
Sector:
2013

•  Over
the
past
year,
95%
of
spend
in
the
finance
sector
increased
or
stayed
the
same.
This
is
in

comparison
to
between
73-‐87%
in
the
other
sectors.
However,
only
half
of
those
in
the
finance
sector

are
predicOng
an
increase
in
spend
next
year
–
this
is
lower
than
the
other
sectors,
where
60-‐66%
are

confident
that
spending
will
go
up.

Total

Finance/Insurance

Fashion
Retail

Online
Retail

Consumer
Electronics

Other

0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%

Q10:
Over
the
past
year,
has
your
spend:

Increased
Stayed
the
same
Decreased
Not
sure

Base:
Total
n=116,
Finance
n=21.
Fashion
n=26;
Online
n=56;
Consumer
Elec
n=20;

Other
n=41

Change
in
Spend
by
Sector
Past
Year:
2012
vs.
2013

Base
2012
n=104;
Finance
n=46;
Retail
n=45;
Other
n=43

Base
2013
n=116;
Finance
n=21;
Retail
n=82;
Other
n=41

Total

Finance/Insurance

Fashion
Retail

Online
Retail

Consumer
Electronics

Other

0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%

Q11:
Thinking
about
spend
over
next
year,
will
it:

Go
up
Go
Down
Stay
the
same
Not
sure

Spend

❱ Overall, increase in spend over the past year has remained relatively constant.
❱ There has been a drop in those who say spending has decreased (15% in 2012 to 9% in 2013).
Figure Twenty-five: “In terms of affiliate marketing over the past year, has your spend…?”
❱ A similar number to last year are predicting an increase in spend on affiliate
marketing next year (61%).
Figure Twenty-six: “Now thinking about your spend over the next year, will it…?”
Change
in
Spend
by
Sector
Past
Year:
2012
vs.
2013

Base
2012
n=104;
Finance
n=46;
Retail
n=45;
Other
n=43

Base
2013
n=116;
Finance
n=21;
Retail
n=82;
Other
n=41

•  Overall,
increase
in
spend
over
the
past
year
has
remained
the
same.

•  There
has
been
a
drop
in
those
who
say
spending
has
decreased
(15%
in
2012
to
9%
in
2013).

Total
2012
Total
2013
Finance
2012
Finance
2013
Fashion/

Online
Retail/

Consumer

Electronics

2012

Fashion/

Online
Retail/

Consumer

Electronics

2013

Other
2012
Other
2013

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Q10:
Over
the
past
year,
has
your
affiliate
marke,ng

spend:

Not
sure

Decreased

Stayed
the
same

Increased

Change
in
Spend
by
Sector
Next
Year:
2012
vs.
2013

Base
2012
n=104;
Finance
n=46;
Retail
n=45;
Other
n=43

Base
2013
n=116;
Finance
n=21;
Retail
n=82;
Other
n=41

Total
2012
Total
2013
Finance
2012
Finance
2013
Fashion/

Online
Retail/

Consumer

Electronics

2012

Fashion/

Online
Retail/

Consumer

Electronics

2013

Other
2012
Other
2013

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Q11:
Thinking
about
your
affiliate
marke,ng
spend
over
the

next
year,
will
it:

Not
sure

Stay
the
same

Go
down

Go
up

•  A
similar
number
to
last
year
are
predicOng
an
increase
in
spend
on
affiliate
markeOng
next
year

(61%).

Spend

❱ The highest proportion of those indicating an increase in relative spend on affiliate marketing is
in the finance sector (57%), compared to Fashion Retail, where only 35% increased their relative
spend.
Figure Twenty-seven: “Has your percentage of affiliate marketing spend increased in relation
to your other spend?”
❱ The biggest increase in relative spend year on year is in the finance sector. Overall, levels remain
stable from 2012.
Figure Twenty-eight: “Has your percentage of affiliate marketing spend increased in relation
to your other spend?”
Increase
in
Spend
on
Affiliate
Marke,ng
vs.
Other
Online
Spend
by
Sector:
2013

Base:
Total
n=116,
Finance
n=21.
Fashion
n=26;
Online
n=56;
Consumer
Elec
n=20;

Other
n=41

•  The
highest
proporOon
of
those
indicaOng
an
increase
in
relaOve
spend
on
Affiliate
MarkeOng
is
in

the
finance
sector
(57%).

Total
Finance/

Insurance

Fashion
Retail
Online
Retail
Consumer

Electronics

Other

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Q12:
Has
your
%
of
affiliate
marke,ng
spend

increased
in
rela,on
to
your
other
online
spend?

Yes

Not
sure

No

Increase
in
Spend
on
Affiliate
Marke,ng
vs.
Other
Online
Spend
by
Sector:
2012
vs.
2013

Base
2012
n=92;
Finance
n=39;
Retail
n=41;Other
n=37

Base
2013:
Total
n=116;
Finance
n=21;
Retail
n=82;
Other
n=41

•  The
biggest
increase
in
relaOve
spend
year
on
year
is
in
the
finance
sector.
Overall,
levels
remain

stable
from
2012.

Total
2012
Total
2013
Finance
2012
Finance
2013
Fashion/

Online

Retail/

Consumer

Electronics

2012

Fashion/

Online

Retail/

Consumer

Electronics

2013

Other
2012
Other
2013

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Q12:
Has
your
%
of
affiliate
marke,ng
spend
increased
in

rela,on
to
your
other
online
spend?

Yes

Not
sure

No

Spend

❱ For the vast majority of respondents, their affiliate marketing spend comes out of their marketing
budget, followed by eCommerce (22% of all respondents).
❱ Those in the fashion sector are more likely to take their affiliate marketing spend from eCommerce
(38%).
Figure Twenty-nine: “Which department does your affiliate marketing budget currently come from?”
❱ There are no big differences year on year, other than a slight decrease in sales
in the retail and other sectors.
Figure Thirty: “Which department does your affiliate marketing budget currently come from?”
Affiliate
Marke,ng
Budget
by
Sector

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Total
Finance/

Insurance

Fashion
Retail
Online
Retail
Consumer

Electronics

Other

Q13:
Which
department
does
your
affiliate
marke,ng

budget
currently
come
from?

Other

eCommerce

Product

Sales

MarkeOng

•  For
the
vast
majority
of
respondents,
their
Affiliate
MarkeOng
spend
comes
out
of
their
markeOng

budget,
followed
by
eCommerce
(22%
of
all
respondents).

•  Those
in
the
fashion
sector
are
more
likely
to
take
their
Affiliate
MarkeOng
spend
from
eCommerce

(38%).

Base:
Total
n=116,
Finance
n=21.
Fashion
n=26;
Online
n=56;
Consumer
Elec
n=20;

Other
n=41

Affiliate
Marke,ng
Budget
by
Sector:
2012
vs.
2013

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Total
2012
Total
2013
Finance
2012
Finance
2013
Fashion/

Online
Retail/

Consumer

Electronics

2012

Fashion/

Online
Retail/

Consumer

Electronics

2013

Other
2012
Other
2013

Q13:
Which
department
does
your
affiliate
marke,ng

budget
currently
come
from?

Other

eCommerce

Product

Sales

MarkeOng

•  There
are
no
big
differences
year
on
year,
other
than
a
slight
decrease
in
sales
in
the
retail
and

other
sectors.

Base
2012
n=92;
Finance
n=39;
Retail
n=41;
Other
n=37

Base
2013:
n=116;
Finance
n=21;
Retail
n=82,
Other
n=41

Spend

Number of affiliate
networks
❱ Overall, the most common number of affiliate networks managing current campaign is 1, with 47%.
❱ 29% of those in the finance sector are using four or more networks.
Figure Thirty-one: “How many affiliate networks manage your current campaign?”
❱ Across the board, there has not been much change year on year, other than a decrease in those in the
finance sector managing their own campaigns.
Figure Thirty-two: “How many affiliate networks manage your current campaign?”
Number
of
Affiliate
Networks
by
Sector

•  Overall,
the
most
common
number
of
affiliate
networks
managing
current
campaign
is
1.

•  A
third
of
those
in
the
finance
sector
manage
their
own
campaign.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Total
Finance/

Insurance

Fashion
Retail
Online
Retail
Consumer

Electronics

Other

Q16:
How
many
affiliate
networks
manage
your
current

campaign?

We
don't
have
a
current

campaign

None,
we
manage
our
own

program

4
or
more

3

2

1

Base:
Total
n=116,
Finance
n=21.
Fashion
n=26;
Online
n=56;
Consumer
Elec
n=20;

Other
n=41

Number
of
Affiliate
Networks
by
Sector:
2012
vs.
2013

•  Across
the
board,
there
has
not
been
much
change
year
on
year,
other
than
an
increase
in
those

in
the
finance
sector
managing
their
own
campaigns.

Base
2012
n=90;
Finance
n=37;
Retail
n=40;
Other
n=36

Base
2013:
n=116;
Finance
n=21;
Retail
n=82,
Other
n=41

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Total
2012
Total
2013
Finance
2012
Finance
2013
Fashion/
Online

Retail/

Consumer

Electronics

2012

Fashion/
Online

Retail/

Consumer

Electronics

2013

Other
2012
Other
2013

Q16:
How
many
affiliate
networks
manage
your
current

campaign?

We
don't
have
a

current
campaign

None,
we
manage
our

own
program

4
or
more

3

2

1

De-duplication
❱ In general, around seven out of ten respondents stated that they de-duplicate their affiliate sales
against other online channels.
❱ Those in the finance sector are the most likely to do so (86%).
Figure Thirty-three: “Do you de-duplicate affiliate sales against other online channels?”
❱ Again, there has been minimal change since 2012 in those who de-duplicate affiliate sales against
other online channels, remaining at around two thirds.
❱ This is higher in the finance sector, with 86% doing so.
Figure Thirty-four: “Do you de-duplicate affiliate sales against other online channels?”
De-‐duplicate
Affiliate
Sales
by
Sector

Total
Finance/

Insurance

Fashion
Retail
Online
Retail
Consumer

Electronics

Other

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Q17:
Do
you
de-‐duplicate
affiliate
sales
against
other

online
channels?

No

Yes

•  In
general,
around
seven
out
of
ten
respondents
stated
that
they
de-‐duplicate
their
affiliate
sales

against
other
online
channels.

•  Those
in
the
finance
sector
are
the
most
likely
to
do
so
(86%).

Base:
Total
n=116,
Finance
n=21.
Fashion
n=26;
Online
n=56;
Consumer
Elec
n=20;

Other
n=41

De-‐duplicate
Affiliate
Sales
by
Sector:
2012
vs.
2013

Total
2012
Total
2013
Finance
2012
Finance
2013
Fashion/

Online
Retail/

Consumer

Electronics

2012

Fashion/

Online
Retail/

Consumer

Electronics

2013

Other
2012
Other
2013

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Q17:
Do
you
de-‐duplicate
affiliate
sales
against
other

online
channels?

No

Yes

•  Again,
there
has
been
minimal
change
since
2012
in
those
who
de-‐duplicate
affiliate
sales

against
other
online
channel,
remaining
at
around
two
thirds.

•  This
is
higher
in
the
finance
sector,
with
86%
doing
so.

Base
2012
n=89;
Finance
n=37;
Retail
n=40;
Other
n=35

Base
2013:
n=116;
Finance
n=21;
Retail
n=82,
Other
n=41

Likelihood of recommending
affiliate marketing
❱ Those in the finance and consumer electronics sectors are the most likely to recommend affiliate
marketing.
Figure Thirty-five: “How likely are you to recommend affiliate marketing to someone in a similar position to you?”
❱ Across the sectors, there has been a general trend of a slight decrease in likelihood to recommend
since last year.
Figure Thirty-six: “How likely are you to recommend affiliate marketing to someone in a similar position to you?”
Likelihood
of
Recommending
Affiliate
Marke,ng
by
Sector:
2013

Other

Consumer
Electronics

Online
Retail

Fashion
Retail

Finance/
Insurance

Total

0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%

Q18:
How
likely
are
you
to
recommend
affiliate
marke,ng

to
someone
in
a
similar
posi,on
to
you?

Very
likely
Likely
Neutral
Unlikely
Very
unlikely

•  Those
in
the
finance
and
consumer
electronics
sectors
are
the
most
likely
to
recommend
Affiliate

MarkeOng.

Base:
Total
n=156,
Finance
n=24.
Fashion
n=37;
Online
n=70;
Consumer
Elec
n=27;

Other
n=64

Likelihood
of
Recommending
Affiliate
Marke,ng
by
Sector:
2012
vs.
2013

Other
2013

Other
2012

Retail
2013

Retail
2012

Finance
2013

Finance
2012

Total
2013

Total
2012

0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%

Q18:
How
likely
are
you
to
recommend
affiliate
marke,ng

to
someone
in
a
similar
posi,on
to
you?

Very
likely
Likely
Neutral
Unlikely
Very
unlikely

•  Across
the
sectors,
there
has
been
a
general
trend
of
a
slight
decrease
in
likelihood
to
recommend

since
last
year.

Base:
Total
2012
n=108;
Finance
n=43;
Retail
n=51;
Other
n=43

Total
2013
n=156;
Finance
n=24;
Retail;
n=106;
Other
n=64

Knowledge of
affiliate marketing
❱ Knowledge is lowest in the consumer electronics sector (37% good/excellent), and highest in the
finance sector (63% good/excellent).
Figure Thirty-seven: “How much knowledge of affiliate marketing does your CEO have?”
❱ Across all sectors, around 1 in 4 claim their CEO has a good knowledge of affiliate marketing. This is
slightly lower in the ‘other’ sector.
Figure Thirty-eight: “How much knowledge of affiliate marketing does your CEO have?”

Knowledge
of
Affiliate
Marke,ng
by
Sector

Other

Consumer
Electronics

Online
Retail

Fashion
Retail

Finance/
Insurance

Total

0%
20%
40%
60%
80%
100%

Q19:
How
much
knowledge
of
affiliate
marke,ng
does

your
CEO
have?

No
knowledge
Poor
knowledge
Good
knowledge
Excellent
knowledge
I
don't
know

•  Knowledge
is
lowest
in
the
consumer
electronics
sector
(37%
good/excellent),
and
highest
in

the
finance
sector
(63%
good/excellent).

Base:
Total
n=156,
Finance
n=24.
Fashion
n=37;
Online
n=70;
Consumer
Elec
n=27;

Other
n=64

Knowledge
of
Affiliate
Marke,ng
by
Sector:
2012
vs.
2013

Other
2013

Other
2012

Retail
2013

Retail
2012

Finance
2013

Finance
2012

Total
2013

Total
2012

0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%

Q19:
How
much
knowledge
of
affiliate
marke,ng
does

your
CEO
have?

No
knowledge
Poor
knowledge
Good
knowledge
Excellent
knowledge
I
don't
know

•  Across
all
sectors,
around
1
in
4
claim
their
CEO
has
a
good
knowledge
of
markeOng.
This
is

slightly
lower
in
the
‘other’
sector.

Base:
Total
2012
n=108;
Finance
n=43;
Retail
n=51;
Other
n=46

Total
2013
n=156;
Finance
n=24;
Retail;
n=106;
Other
n=64

Finding 3
Coupons, cash back, and loyalty/rewards have experienced
growth in popularity as types of affiliate marketing
being undertaken
While comparison engines remain the most popular type of affiliate marketing undertaken, this survey
has seen growth in other types of affiliate marketing. Notable are coupons, which jumped to 56% of
respondents indicating they use coupons vs 29% last year; loyalty/rewards, at 45% this year compared
to 27% last year; and cash back, which more than doubled to 44% from 18% last year.
This leap in respondents using cash back as a type of affiliate marketing is linked to the rapid growth
experienced by the retail sector in the past year. We have seen cash back’s popularity among retailers
in more established markets such as the UK, and expect to see this type of affiliate marketing jump up
again as the retail sector continues to grow and establish itself locally. It’s a similar story for coupons,
another type of affiliate marketing that works particularly well for the retailers.
In this survey, 45% of retail respondents said they were using cash back, up from 28% last year. For
coupons, almost 7 in 10 retail respondents are now using this type of affiliate marketing, up from 5
in 10 last year, while loyalty/rewards – also being driven by retail – saw a small increase from 43% to
51%.
The growth seen in content as a type of affiliate marketing by fashion retailers is due to advertisers
actively seeking exposure for their products on blogs and content sites. This year, 63% of respondents
reported using content, up from 55% last year.

❱ Other types of affiliate marketing have gained in popularity this year, particularly coupons, loyalty/
rewards and cashback.
❱ Aggregators and Affiliate Search were added for the first time this year and as such there is no
corresponding data for 2012. Similarly Other PPC and Brand Bidding PPC have been removed from
this year’s study and consolidated under Brand Bidding PPC.
Figure Thirty-nine: “Which of the following affiliate marketing types do you work with?”
❱ Overall, Comparison Engines are the most widely used type of affiliate marketing.
❱ Those operating in the retail sectors use a much wider variety of affiliate marketing types than those
in finance.
Figure Forty: “Which of the following affiliate marketing types do you work with?”
Types
of
Affiliate
Marke,ng:
2012
vs.
2013

0%

10%

20%

30%

40%

50%

60%

70%

Comparison

Engines

Content
Coupons
Aggregators
Loyalty/

Rewards

Cashback
Affiliate

Search

Other
Other
PPC
Brand

Bidding
PPC

Q14:
Which
of
the
following
affiliate
marke,ng
types
do

you
work
with?

Total
2012
Total
2013

•  Other
types
of
Affiliate
MarkeOng
have
gained
in
popularity
this
year,
parOcularly
coupons,

loyalty/rewards
and
cashback.

Base
2012
n=90;
2013
n=116

Types
of
Affiliate
Marke,ng
by
Sector

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Comparison

Engines

Content
Coupons
Aggregators
Loyalty/

Rewards

Cashback
Affiliate
Search
Other

Q14:
Which
of
the
following
affiliate
marke,ng
types
do

you
work
with

Total
Finance/
Insurance
Fashion
Retail
Online
Retail
Consumer
Electronics
Other

•  Overall,
Comparison
Engines
are
the
most
widely
used
type
of
Affiliate
MarkeOng.

•  Those
operaOng
in
the
retail
sectors
use
a
much
wider
variety
of
Affiliate
MarkeOng
types
than

those
in
finance.

Base:
Total
n=116,
Finance
n=21.
Fashion
n=26;
Online
n=56;
Consumer
Elec
n=20;

Types of affiliate
marketing

❱ Use of comparison engines has fallen slightly among all sectors, and other types of affiliate marketing
have gained in popularity since last year, resulting in a more even spread of types used this year.
Figure Forty-one: “Which of the following affiliate marketing types do you work with?”
❱ The top affiliate type used among agencies is aggregators (70%), and among direct clients, coupons (62%).
❱ Direct clients appear to use a wider range of affiliate marketing types than agencies.
Figure Forty-two: “Which of the following affiliate marketing types do you work with?”
Types
of
Affiliate
Marke,ng
by
Sector:
2012
vs.
2013

0%
10%
20%
30%
40%
50%
60%
70%
80%

Other

Brand
Bidding
PPC

Cashback

Other
PPC

Loyalty/Rewards

Coupons

Content

Comparison
Engines

2012
Other
Retail
Finance

•  Use
of
comparison
engines
has
fallen
slightly
among
these
sectors,
and
other
types
of
Affiliate

MarkeOng
have
gained
in
popularity
since
last
year,
resulOng
in
a
more
even
spread
of
types

used
this
year.

Base
2012
n=90;
Finance
n=37;
Retail
n=40;
Other
n=36

Base
2013:
Total
n=116;
Finance
n=21;
Retail
n=82;
Other
n=41

0%
20%
40%
60%
80%
100%

Other

Aggregators

Cashback

Affiliate
Search

Loyalty/Rewards

Coupons

Content

Comparison
Engines

2013
Other
Retail
Finance

Q14:
Which
of
the
following
affiliate
marke,ng
types
do
you
work
with?

Types
of
Affiliate
Marke2ng
by
Company
Type:
2012
vs.
2013

•  The
top
type
among
agencies
is
aggregators
(70%),
and
among
direct
clients,
coupons
(62%).

•  Direct
clients
appear
to
use
a
wider
range
of
Affiliate
MarkeEng
types
than
agencies.

Base
2012
n=90;
Agency
n=31;
Direct
n=59

Base
2013
n=116;
Agency
n=27;
Direct
n=89

0%
10%
20%
30%
40%
50%
60%
70%

Other

Affiliate
Search

Brand
Bidding
PPC

Cashback

Other
PPC

Aggregators

Loyalty/Rewards

Comparison
Engines

Coupons

Content

Direct
2013
Direct
2012

0%
10%
20%
30%
40%
50%
60%
70%
80%
90%

Other

Loyalty/Rewards

Cashback

Other
PPC

Brand
Bidding
PPC

Affiliate
Search

Content

Coupons

Comparison
Engines

Aggregators

Agency
2013
Agency
2012

Q14:
Which
of
the
following
affiliate
marke2ng
types
do
you
work
with?

Types of affiliate
marketing

Finding 4
The high number of new entrants to affiliate marketing
indicates there is more room for growth in the channel
There has been a big rise in those new to affiliate marketing since last year, mainly in the fashion/retail
and other sectors.
Potential growth is shown among direct clients indicated by the following:
❱ there has been an increase year on year in spend among direct clients and a decrease among agencies
❱ an increase in the number of direct clients who have been engaged in affiliate marketing for under a year
❱ accompanied by an increase of proportional spend allocated to affiliate marketing by direct clients.
One in three respondents overall is new to affiliate marketing, indicating they have been engaging in the channel
for less than a year. Nearly two-thirds of respondents have used affiliate marketing for three years or less.
By sector, half of respondents from consumer electronics are new to the channel this year, 42% of
fashion retail respondents are new, and 29% of online retail respondents.
The fashion retail sector is indicating future growth. While it is the sector that spends the lowest proportion
of their budget on affiliate marketing, it is also the sector with the most new entrants saying they have
engaged in the channel for less than a year. They are the sector most likely to take their affiliate marketing
spend from their ecommerce budget, and they engage in a wide range of affiliate marketing types. This
presents an opportunity for the publishers to diversify their offering to tap into this growth.

❱ Nearly two thirds of all those surveyed have been engaged in affiliate marketing in Australia for three
years or less.
❱ Affiliate marketing is more established in the finance sector (34% have been engaged for 6+ years),
and newer in fashion and online retail.
Figure Forty-three: “How long has your agency/company engaged in affiliate marketing in Australia?”
❱ There has been a big rise in those new to affiliate marketing since last year - this is mainly in the
retail and other sectors.
Figure Forty-four: “How long has your agency/company engaged in affiliate marketing in Australia?”
Length
of
Time
Engaged
in
Affiliate
Marke,ng
by
Sector:
2012
vs.
2013

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Total
2012
Total
2013
Finanace

2012

Finance
2013
Fashion/

Online

Retail/

Consumer

Electronics

2012

Fashion/

Online

Retail/

Consumer

Electronics

2013

Other
2012
Other
2013

Q15:
How
long
has
your
company
been
engaged
in

affiliate
marke,ng
in
Australia?

Over
8
years

Between
6-‐8
years

Between
4-‐5
years

Between
1-‐3
years

Under
a
year

•  There
has
been
a
big
rise
in
those
new
to
Affiliate
MarkeOng
since
last
year
-‐
this
is
mainly
in
the

retail
and
other
sectors.

Base
2012
n=90;
Finance
n=37;
Retail
n=40;
Other
n=36

Base
2013:
n=116;
Finance
n=21;
Retail
n=82,
Other
n=41

Length of time using
affiliate marketing
Length
of
Time
Engaged
in
Affiliate
Marke,ng
by
Sector

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Total
Finance/

Insurance

Fashion
Retail
Online
Retail
Consumer

Electronics

Other

Q15:
How
long
has
your
company
been
engaged
in

affiliate
marke,ng
in
Australia?

Over
8
years

Between
6-‐8
years

Between
4-‐5
years

Between
1-‐3
years

Under
a
year

•  Nearly
two
thirds
of
all
those
surveyed
have
been
engaged
in
Affiliate
MarkeOng
in
Australia
for

three
years
or
less.

•  Affiliate
MarkeOng
is
more
established
in
the
finance
sector
(34%
have
been
engaged
for
8+

years),
and
newer
in
fashion
and
online
retail.

Base:
Total
n=116,
Finance
n=21.
Fashion
n=26;
Online
n=56;
Consumer
Elec
n=20;

Other
n=41

Finance

❱ There has been a big increase in the number of direct clients engaged in affiliate marketing for less
than a year since 2012 (14% - 35%).
Figure Forty-five: “How long has your agency/company engaged in affiliate marketing in Australia?”
Length
of
Time
Engaged
in
Affiliate
Marke,ng
by
Company
Type:
2012
vs.
2013

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Total
2012
Total
2013
Agency
2012
Agency
2013
Direct
2012
Direct
2013

Q15:
How
long
has
your
agency/company
engaged
in

affiliate
marke,ng
in
Australia?

Over
8
years

Between
6-‐8
years

Between
4-‐5
years

Between
1-‐3
years

Under
a
year

•  There
has
been
a
big
increase
in
the
number
of
direct
clients
engaged
in
affiliate
markeOng
for

less
than
a
year
since
2012
(14%
-‐
35%).
This
could
reflect
a
possible
increase
in
the
number
of

direct
clients
engaged
in
affiliate
markeOng.

Base
2012

n=90;
Agency
n=31;
Direct
n=59

Base
2013:
n=116;

Agency
n=27;
Direct
n=89

Length of time using
affiliate marketing

Finding 5
There is potential for the mobile channel to deliver more
sales, as well as more companies to adopt a mobile
optimised web presence
This year, we added questions on the mobile channel for the first time.
Less than 10% of sales are being driven by mobile for the majority of respondents (58%). Retail
shows the highest attribution of sales from mobile, with 15% of respondents in both Online Retail and
Fashion retail saying mobile drives more than 30% of their sales.
Consumer electronics has the lowest sales results in mobile, with three-quarters of respondents
indicating that mobile drives less than 10% of their sales. This is despite the fact consumer electronics
has the highest number of respondents saying they have a mobile optimised website.
For fashion retailers, three-quarters say they have a mobile enabled website, while a third report 16%
or more in sales driven by the channel.
Overall, three in 10 respondents said they do not have a mobile enabled website. This is the same
across both agencies and direct advertisers.
In a recent Mobile Report published by dgm, we noted that Australia is driving more clicks from
smartphones and tablets compared to the UK, however sales percentages are the same or below
those in the UK where more advertisers have mobile optimised websites. We believe once Australian
advertisers offer a better mobile shopping experience to the customer, this will close the gap.
The below graph from the report shows this difference (Source: dgm Mobile Report October 2013
http://www.dgm-au.com/weblog/2013/10/18/lack-mobile-shopper-experience-costing-business-sales/):
dgmAustralia
2013
Australian
Affiliate
Benchmarking
Survey

3
Mobile enabled websites
• There is not much difference across sectors, other than the
consumer electronics sector, who are the most likely to have a
0%

5%

10%

15%

20%

25%

Smartphone
Clicks

Tablet
Clicks

Smartphone
Sales

Tablet
Sales

Mobile
Clicks

Mobile
Sales

AU
vs
UK
Comparison

UK

AU

Mobile enabled
websites
❱ There is not much difference across sectors, other than the consumer electronics sector, who are the
most likely to have a mobile enabled website (89%).
Figure Forty-six: “Do you have a mobile enabled website?”
❱ Across both agencies and direct clients, 7 in 10 have a mobile enabled website.
Figure Forty-seven: “Do you have a mobile enabled website?”
Mobile
Enabled
Website
by
Sector

Total
Finance/

Insurance

Fashion
Retail
Online
Retail
Consumer

Electronics

Other

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Q20:
Do
you
have
a
mobile
enabled
website?

No

Yes

•  There
is
not
much
diﬀerence
across
sectors,
other
than
the
consumer
electronics
sector,
who

are
the
most
likely
to
have
a
mobile
enabled
website
(89%).

Base:
Total
n=156,
Finance
n=24.
Fashion
n=37;
Online
n=70;
Consumer
Elec
n=27;

Other
n=64

Mobile
Enabled
Website
by
Company
Type

Total
Agency
Direct

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Q20:
Do
you
have
a
mobile
enabled
website?

No

Yes

•  Across
both
agencies
and
direct
clients,
7
in
10
have
a
mobile
enabled
website.

Base:
Total
n=156,
Agency
n=39;
Direct
n=117

❱ For the majority of respondents (58%), under 10% of online sales are driven by mobile.
❱ Fashion Retailers drive the highest volume of sales through mobile, with 26% of respondents
achieving over 21% of sales through mobile devices.
Figure Forty-eight: “What percentage of your total online sales are driven by mobile?”
❱ A higher percentage of direct clients’ online sales are driven by mobile (29% over 16%)
Figure Forty-nine: “What percentage of your total online sales are driven by mobile?”
Online
Sales
Driven
by
Mobile
by
Sector

Total

Finance/

Insurance

Fashion
Retail
Online
Retail
Consumer

Electronics

Other

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Q21:
What
%
of
your
total
online
sales
are
driven
by
mobile?

31%+

21-‐30%

16-‐20%

11-‐15%

5-‐10%

5%

•  For
the
majority
of
respondents
(58%),
under
10%
of
online
sales
are
driven
by
mobile.

Base:
those
with
mobile
enabled
website
n=107,
Finance
n=17.
Fashion
n=27;
Online
n=47;
Consumer
Elec
n=24;

Other
n=42

Online
Sales
Driven
by
Mobile
by
Company
Type

Total

Agency
Direct

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Q21:
What
%
of
your
total
online
sales
are
driven
by
mobile?

31%+

21-‐30%

16-‐20%

11-‐15%

5-‐10%

5%

•  A
higher
percentage
of
direct
clients
online
sales
are
driven
by
mobile
(29%
over
20%)

Base:
those
with
mobile
enabled
website
n=107,
Agency
n=28;
Direct

n=79

Mobile enabled
websites

Methodology
In the 2013 dgm Affiliate Marketing benchmarking study, edentify surveyed 156 Australian online
media buyers that included 39 media buying agencies and 117 large online advertisers and brands.
The online survey began on 18 September and was completed on 30 September 2013.
Questions provided to the survey participants asked about their use of, attitudes to, and the decision
making process when considering affiliate marketing.
edentify defines “affiliate marketing” as a type of performance-based marketing in which a business
rewards one or more affiliates for each visitor or customer brought about by the affiliate’s own marketing
efforts.

2013 Industry survey Dgm affiliate survey final chris garner

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