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Confidence in affiliate marketing 'is rising'

Insight | Digital marketing budgets | Affiliate marketing channel | Businesses

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Businesses are investing a larger proportion of their digital marketing budgets in the affiliate marketing channel, it has been reported.

According to the Internet Advertising Bureau (IAB), there has been a 45 per cent increase in investment from brands in their affiliate programmes this year.

And 61 per cent of advertisers surveyed said they would be increasing their marketing spend in the channel during 2013.

Some 23 per cent of advertisers surveyed said their affiliate programmes were established during the previous 12 months, pointing to the growing popularity of the channel.

IAB Affiliate Marketing Council member Mark Haviland described the figures as "a vote of confidence in the channel" by advertisers.

"It’s clear that as the affiliate sector matures, marketers are keen to invest more in the cost-per-action performance model," he stated.

Mr Haviland, also managing director of Rakuten Linkshare, said the survey findings reveal a positive trend towards marketing spend being targeted towards the performance return on investment that is delivered by the affiliate channel.


Commission levels rising

The IAB found that 21 per cent of advertisers have seen a rise in commission payments of over £31,000.

At the same time, a 16 per cent increase in advertisers paying monthly commissions of over £100,000 has also been witnessed.

And 72 per cent of those surveyed said they expect monthly commission payments to rise again in the next 12 months.

More than four in five (81 per cent) respondents cited the reason for their prediction as 'a planned increase in spending next year'.

This reflects the affiliate channel's reliability and growing advertiser confidence, the IAB claimed.

 

'Very encouraging findings'

Clare O’Brien, IAB industry programmes consultant and head of the Affiliate Marketing Council, said the industry should be "very encouraged" by the findings.

She noted that the IAB study reveals higher spending, stronger sales results and growing numbers of advertisers launching affiliate programmes.

These developments underline the growing confidence in the affiliate channel as a reliable part of the marketing mix, the expert claimed.

"It’s also really exciting to see the growth of affiliates as brands in their own right," Ms O'Brien stated.

She said that customers are becoming increasingly loyal to aggregator websites, which are "establishing a strong position in the minds of UK consumers".


Posted by Jon Aspinell on 4th April 2012

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