The UK affiliate market was worth £3.82bn in 2008, a 22% increase from £3.13bn in 2007. According to the Affiliate Marketing Buyer's Guide 2009, a report by research outfit Econsultancy, an estimated £227m was paid last year in commission and fees to affiliates and networks, up from £186m in 2007.
Despite the recession, it found that the affiliate marketing industry continues to prosper and, in terms of online sales coming from this channel, is on course to be worth well over £4bn by the end of 2009.
While the slashing of marketing budgets is having a negative impact on affiliate spend, clients' appetite for performance-based advertising is making up for some of that downside. According to figures from IMRG and Capgemini, overall UK online retail sales increased 25% in 2008 to £43.8bn.
A major factor contributing to the popularity of affiliate marketing from a marketers' point of view is the ability to link budgets directly to performance, drive online sales, increase web traffic and generate brand awareness. However, in order to keep affiliates loyal to the brand and harness their collective power, marketers' should not forget about traditional pain points, like payments, and ensure they are addressed
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