IAB Research Reveals that Investment in the Affiliate Channel Strengthens
posted by Sarah Spencer - Network Comms Manager • 29 Nov 2012
Survey shows 45% uplift in investment from brands in their affiliate programmes, increased commission payments and confidence in year ahead
The Internet Advertising Bureau’s (IAB) Annual Affiliate Advertiser Survey, supported by A4U, released today reveals that brands are investing a larger proportion of their digital marketing budgets in the affiliate marketing channel. The survey shows 45% uplift in affiliate programmes investing more than 31% of their digital marketing budgets in 2012. Further, 61% of all advertisers surveyed said they would be increasing their marketing spend in the channel during 2013.
Clare O’Brien, IAB Industry Programmes Consultant and head of the Affiliate Marketing Council, said: “Overall, the affiliate industry should be very encouraged by these findings: higher spending, stronger sales results and growing numbers of advertisers mounting affiliate programmes, all underline the growing confidence in the affiliate channel as a reliable part of the marketing mix. It’s also really exciting to see the growth of affiliates as brands in their own right, with consumer loyalty to aggregator sites such as vouchercodes.co.uk, Savoo, Quidco, and U-Switch establishing a strong position in the minds of UK consumers.”
The IAB results show positive outlook in 2013 for Tradedoublers publishers, advertisers & agencies
According to Dan Cohen, IAB Affiliate Marketing Council Steering Committee member and Market Unit Leader for Tradedoubler: “The results show that the UK affiliate marketing sector is in robust health and is delivering for advertisers. Established advertisers are increasing spend and new advertisers are adding affiliate to their marketing toolkit which can only be good for the industry overall. New and innovative business models that we’ve seen in the affiliate market widen the scope for more advertisers to benefit from this uniquely rewarding channel.”
Remarkable advertiser growth in the affiliate channel over the past 12 months
Another validation of the channel’s increasing attractiveness to advertisers is the sharp growth in new affiliate programmes. Almost a quarter of advertisers (23%) surveyed reported their affiliate programmes were established during the previous 12 months.
The research revealed that 21% of advertisers reported a rise in commission payments of over £31K – including a 16% rise in advertisers paying monthly commissions of over £100K. 72% said they expect monthly commission payments to rise again in the next 12 months. The majority of these (81%) cited the reason for their prediction was a planned increase in spending next year, reflecting the channel’s reliability and growing advertiser confidence.
Equally encouraging was that more than half (52%) of advertisers who responded to the IAB survey, reported online sales revenues in the last year of more than £10 million, a clear indication that the channel is attracting larger brands.
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