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UK affiliate marketing sector to grow to £4bn in online retail sales

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UK affiliate marketing sector to grow to £4bn in online retail sales

The affiliate marketing sector in the UK will be worth more than £4bn in online retail sales in 2009, according to a new report from Econsultancy.

Research published in the Affiliate Marketing Buyer’s Guide 2009 estimates that the market grew by 22pc in 2008 to a value of £3.82bn.

The report also estimates that £227m was paid in commissions and fees to affiliate publishers and networks last year as the performance-based advertising model continues to attract advertisers.

Figures from IMRG and Capgemini, indicate that overall UK online retail sales grew by 25pc in 2008 to £43.8 billion. Based on these figures, Econsultancy says the affiliate marketing industry was therefore responsible for nearly a tenth of all online sales during 2008.

“Because it is rooted in performance, affiliate marketing is continuing to prosper as an industry and we believe the affiliate sector will remain at the forefront of e-commerce as it continues to drive a high proportion of online sales,” said Linus Gregoriadis, research director at Econsultancy.

“Although the slashing of marketing budgets and well-documented collapse of companies such as Woolworths has had a negative impact, the increased appetite for performance-based advertising is making up for some of that downside.”

According to Econsultancy, some of the key market trends in affiliate marketing in 2009 include: cost per acquisition model going from strength to strength; consumers turning to voucher code and cash-back websites; issues surrounding ‘last-click-wins’ becoming more apparent; afffiliates calling for a greater emphasis on transparency and communication across the sector; publishers developing innovative media methods; and, more agencies offering affiliate marketing services to their clients.

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