Industry research highlights impact and effectiveness of affiliate marketing

We wanted to get under the skin of the sector and find out what digital marketers really think about affiliate marketing, so we carried out some research at this year’s ad:tech London. Our aim was to reveal levels of understanding and how marketers perceive affiliate marketing compared to other forms of advertising. Here are the main findings from our research.

Benefits are understood but spend unlikely to change

The benefits of affiliate marketing are widely accepted by the industry (78%), yet only 42% of the delegates questioned (42%) plan to increase their affiliate marketing budgets in the next 12 months.  This is in contrast to figures which indicate that over half (52%) will be raising their overall marketing budgets over the same period.

Impact and effectiveness

An overwhelming majority (86%) see affiliate marketing as being more, or as effective, as other forms of advertising such as search, display and email.  Moreover, the key benefits are singled out as; increased sales (55%), lead generation (50%) and measurable ROI (44%).

Jargon impacting understanding

There is still a degree of uncertainty when it comes to demystifying the acronyms and phrases that dominate the sector and while understanding of Pay Per Click (PPC) and Cost Per Action (CPA) are both high at 72% and 70% respectively, knowledge of the more specific terms is low.  Post Impression tracking (PI), for example, is understood by only 20% of delegates, Effective Cost Per Thousand by 20% and Earnings Per Click (EPC) by just 22%. 

It’s encouraging to see that uptake and acceptance of affiliate marketing is growing but clearly there is still work that needs to be done and our sector is notoriously rife with jargon and confusing acronyms.  There’s an obvious educational role networks can play here and we’ll be taking steps to ensure we’re separating the fact from fiction, which may in turn lead to greater spend and investment.

Click here to read an an article we wrote last year on jargon busting terms used in affiliate marketing.

Serena Masih

Serena Masih

Serena is responsible for affilinet’s marketing strategy in the UK and for raising brand awareness through events, PR and other marketing activities.
Serena Masih

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