The affiliate marketing sector will drive an estimated £4.62bn in UK online retail sales during 2010, according to a report published this week by Econsultancy. The Affiliate Marketing Buyer’s Guide 2010, the most comprehensive report available on the UK’s digital performance marketing industry, estimates that the sector grew by 8% in 2009 and will expand […]
The affiliate marketing sector will drive an estimated £4.62bn in UK online retail sales during 2010, according to a report published this week by Econsultancy. The Affiliate Marketing Buyer’s Guide 2010, the most comprehensive report available on the UK’s digital performance marketing industry, estimates that the sector grew by 8% in 2009 and will expand by a further 12% in 2010.
According to the report, the sector was worth £4.13 billion last year, when an estimated £245 million was paid in commissions and fees to affiliates and networks. In line with the sector’s overall growth, the value of commission and fees will increase to £275 million for 2010, according to the report.
20/08/2010
The £4.62 billion figure should be seen in the context of figures released by the Interactive Media in Retail Group (IMRG), which predict that online sales during 2010 will hit £56 billion.
The affiliate marketing industry will be responsible for 8% of all online sales within the UK during 2010 according to these figures.
Econsultancy’s Research Manager Aliya Zaidi said: “Econsultancy strongly believes that the sector will continue to add value to the customer journey and drive significant sales for companies which they wouldn’t have otherwise made.”
She added: “The harsh economic climate has caused problems for the sector but it has also benefited from a shift in marketing emphasis to performance-based marketing and online channels. There is also increased consumer demand for bargains, coupled with the growing trend towards researching purchases online. Increased consumer thriftiness has meant opportunities for affiliates offering deals, discounts and voucher codes.”
The Econsultancy / ExactTarget Marketing Budgets 2010 Report, published at the start of this year, found that 36% of responding companies were planning to increase their affiliate marketing budgets compared to only 9% who said that they were planning to decrease them.
Key market trends in 2010
– Affiliate marketing prospers in difficult economic climate
– Transparency holds key to enhancing industry reputation
– Consumers turn to voucher-code and cash-back websites
– Case for multi-attribution model gains momentum
– Emerging channels drive affiliate marketing innovation
For more details on the report, click here.
