Advertiser Investment In The Affiliate Channel Strengthens

The IAB have just released a survey revealing advertisers are feeling confident about the value of performance marketing. Brands are investing a larger proportion of their digital marketing budgets in affiliate marketing compared to last year.

Even better news is that 61% of advertisers surveyed said they would be increasing their marketing spend in the channel next year. It’s obvious that marketers are keen to invest more in the CPA performance model. The survey has also found that more advertisers are getting on board and this has resulted in a sharp growth in new affiliate programs established in the last 12 months.

Take a look at some of their other findings below:

  • 100% of advertisers surveyed expect their online revenues to grow in 2013, with 44% estimating revenue increases of between 11-25%
  • Affiliate marketing spend share is increasing and the survey show a 45% uplift in the number of advertisers spending more than 31% of their online marketing budgets in the affiliate channel
  • More than a quarter of the advertisers surveyed (28%) are running seasoned affiliate programmes that are 6 or more years old
  • The channel continues to grow rapidly: advertisers with new affiliate programmes set up during the last year, accounted for 23% of respondents.
  • Over half of the respondents have annual online revenues of over £10 million
  • Over half of the advertisers said that their monthly affiliate commission payments rose in the last year
  • 72% expect affiliate commission payments to rise in the next 12 months
  • 61% are planning to increase their affiliate marketing spend during the next 12 months
  • 49% of principle revenues are from cashback and vouchercode affiliates

Clare O’Brien from the IAB believes that “ 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 would appear that the perceived value of performance marketing is increasing, indeed.

Review the full study here: IAB Affiliate Survey 2012.

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