The new magic number in affiliate marketing is 9

Jan. 24, 2013 | by Kunal Patel

Following the recent publication of the IAB and PWC online performance marketing study many people outside the affiliate channel were probably surprised when they saw the figure of £9 billion being associated to sales attributed to performance marketing.

There are a lot of impressive numbers mentioned in this study: the affiliate channel accounts for 6% of the UK internet economy and brands are seeing an enormous average return of £11 for every £1 spent. It also states there are 3000-4000 advertisers already working in this space in some capacity.

IAB affiliate marketing study

All great statistics however I want to focus on what this all means away from the numbers and whether this will change the attitudes of those that view the affiliate channel cynically.

There are questions posed every day in the affiliate channel about how incremental it is and how cashback and discount sites do not add value and can even devalue the advertisers brand.

Working in the digital environment we all become a bit cynical and forget to think like a customer whether that’s a customer of a service or a product.

This is where the cashback and voucher code sites have made huge strides and built their empire on catering to the behaviour of the consumer and in some ways shaping it. Austerity in the UK has not been pleasant for many but the affiliate channel has thrived and adapted to the change in consumer behaviour. Billboards & posters are plastered with affiliate advertising raising the awareness of consumers that they can buy the things they want even in the current economic environment by earning cashback or using a voucher code.

The question that advertisers are asking themselves more and more often now is what is the opportunity cost of not being on this site or that newsletter. Because if you are not featuring then you can bet that your competitors are.

The IAB study shows that the affiliate channel is a serious player when it comes to competing for digital budget and the growth of this channel is set to continue for the foreseeable future. As advertisers shift more budget to the performance channel and new advertisers finally take the plunge, the affiliate slice of the proverbial pie is only going to get bigger.

Affiliate marketing is still only in its teens in the context of the other channels and is set to continue its growth spurt for the next few years.

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    Comments (2)

    • Web Marketeerz - The new magic number in affiliate marketing is 9 – iCrossing

      [...] Continue Reading: The new magic number in affiliate marketing is 9 – iCrossing [...]Jan 29, 2013 11:09 am

    • Kyle Therrien

      Great post! It was very insightful to us and most likely many others. You had a lot of good points and we found it very helpful. We also have tons of various articles on making money from an online business. Drop by our website if you want :)

      -Kyle Therrien 29, 2013 12:12 am

    Please note: the opinions expressed in this post represent the views of the individual, not necessarily those of iCrossing.

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