Is Affiliate Marketing the future for online Retail?
posted by Tom Rickey - Publisher Account Director • 21 May 2013
UK businesses spent £814m on affiliate marketing and lead generation activities in 2012, generating £9 billion in sales - yet only £162m of this was spent with retail clients. However, total UK online ad spend in 2012 is expected to have reached £5.3bn so we still have a long way to go.
The affiliate marketing industry demonstrates incremental sales and increasingly strong ROI for our clients as more of their marketing activity is managed through the affiliate channel. The notion of ‘spend £1 and make £5’ is stronger in affiliate marketing than in almost any other channel and it is something that we need to develop even further.
We need to broaden the reach of retail affiliate activity to incorporate more email, display and mobile advertising on a CPA than is currently being utilised. The innovative publishers and their technology will continue to improve to enable better targeting, thus less wasted ad space and more ad spend efficiency.
The future looks bright for online performance marketing, with advertisers estimating that they will spend 5-10% more through the channel this year, and affiliate marketing is going to become an increasingly integral part of the user journey. We will continue to prove ourselves as a cost-effective channel for generating sales, and particularly for our ability to get loyal customers to switch to a new brand through clever placement and appropriate, timely messaging and as such affiliate marketing is integral to the future of online retail.