Europeanaffiliatelandscapereport2012

Created by PerformanceIN and in association with Webgains;
the second annual European affiliate landscape survey includes input from over 900 European affiliates.
[ European Affiliate Marketing
Landscape Report 2012 ]

European Affiliate Marketing Landscape Report 2012
In Association with Webgains
All rights reserved. Existem Events Ltd grants you to store and print from this material for your own personal and commercial use.
No part of this publication may be reproduced without prior permission from the publisher. Copyright © 2012 Existem Events Ltd
Page 2
Contents
Foreword.................................................................................................................................................4
Landscape Report 2012 Highlights..........................................................................................................5
European Demographic Data, Geographies and Affiliate Information...................................................7
Figure 1: Gender .................................................................................................................................7
Figure 2: Age .......................................................................................................................................7
Figure 3: When Did You Start Work In Affiliate Marketing?...............................................................8
Figure 4: Which Of The Following Best Describes You?......................................................................8
Figure 5: Including You, How Many Employees Work In Your Affiliate Business? .............................8
Figure 6: Have You Been Financially Funded In Any Way?.................................................................9
Figure 7: In Which Country Is Your Primary Operation?.....................................................................9
Figure 8: Which Territories Are You Planning To Expand Into During 2012? (43% are planning to
expand) .............................................................................................................................................10
Figure 9: Which Verticals Do You Work In With Your Affiliate Activity? ..........................................11
Figure 10: What Is Your Preferred Payment Model?........................................................................11
Figure 11: How Would You Rate These Issues In Order Of Importance Within The Country You
Conduct The Largest Amount Of Business?......................................................................................12
Figure 12: On Average, How Much Commission Do You Earn Per Month?......................................12
Figure 13: What Percentage Of Your Overall Company Turnover Is Attributed To Performance
Marketing?........................................................................................................................................13
Figure 14: Which Affiliate Models Do You Work With?....................................................................14
Figure 15: How Important To Your Earnings Is Contextual Advertising? (i.e Adsense)....................14
Figure 16:How Do You Generate The Majority Of Traffic To Your Website? ...................................14
Figure 17: Have You Used Pay Per Call?............................................................................................15
Figure 18: Which Is Your Preferred Network You Currently Work With? ........................................16
Figure 19: Which 5 Of These Are Most Important To You When Working With An Advertiser /
Merchant?.........................................................................................................................................16
Figure 20: Which 5 Attributes Would Encourage You To Work More Closely With An Advertiser? 17
Figure 21: How Would You Rate The Quality Of The E-mails You Receive From Agencies,
Advertisers and Networks?...............................................................................................................17
How can a Network / Advertiser / Agency improve their relationship with you? ...........................17
Figure 22: Do You Think Your Commissions Earned In 2012 Will Be More Or Less Than In 2011?..18

Page 3
Figure 23: What Do You Expect To Be The Biggest Threat To Your Earnings This Year?..................19
Figure 24: How Positive Are You Regarding The Future Of Your Performance-Related Activity
Within Your Business? ......................................................................................................................20
Why?.................................................................................................................................................20
Figure 25: Have You Taken Any Steps To Conform To The EU Privacy Directive?............................21
If No, Why Not?.................................................................................................................................22

Page 4
Foreword
It does not seem like a year since we launched the inaugural pan-European
affiliate survey; partly because, as I suspect, we are all busy aligning our
resources to the incredible growth we have seen in the affiliate marketing
industry over the past decade. However, a whole year it has been, and the
exciting thing about this year’s survey is that we now have data to
compare with last year’s survey and see how things have changed in
twelve months. Two survey’s data certainly does not give us the full
picture, but does allow us to start reflecting on potential trends and the
direction things are moving.
The logic for carrying out the survey is indisputable. Our industry has
reached a size and a level of maturity that makes understanding the key drivers imperative and no-
one underestimates the importance of the vital services affiliates perform. Only by such detailed
data collection and analysis can we plan our businesses to respond properly to any identified issues.
We need to be able to structure our organisations to deliver what the market requires now and in
the future in order to ensure the growth continues. A detailed understanding of the nature,
composition, promotional techniques and concerns of affiliates, both in their home markets, and
across the whole of Europe is absolutely essential.
The survey this year was filled out by over 900 affiliates in 40 countries. Questions from the first
part of the survey were aimed at discovering the key characteristics of active affiliates (gender, age,
company size, earnings etc). Who exactly are these people at the heart of our industry? The survey
also examines how international our European affiliates really are; and how much cross-border
promotion takes place.
Understanding how affiliates choose to promote our merchants is an essential part of the puzzle,
and the survey examines in depth the tools, techniques and promotional biases employed. The
differences (and similarities) between countries paint a fascinating picture.
Of particular value are the views expressed by the affiliates on how our industry is evolving and how
they see the future unfolding. Do affiliates see earnings rising or falling? Where are the threats to
earnings? Which countries are optimistic and which are less so?
I sincerely hope you enjoy reading and absorbing the results of this survey, and I want to take the
opportunity to thank the affiliates who gave of their time to contribute to this most important piece
of analysis. I would also like to thank the team at PerformanceIN.com and Chris Johnson in
particular for writing and undertaking the survey, compiling the data, completing the analysis and
finally writing this report. I am sure you will find it compelling reading and a useful tool in planning
your business going forward.
Managing Director, Webgains

Page 5
Landscape Report 2012 Highlights
- As much as 55% of European Affiliates really heavily on Search Engine Optimisation to
generate traffic to their website. Still a high amount but the figure is down from 65% in
2011 as affiliates explore new avenues to generate traffic. Social Media (13%) and Paid
Search (12.7%) have increased in popularity compared to 2011 figures of 8% and 10%
respectively.
- Content-driven Affiliates are on the decrease across Europe, when compared to 2011’s
figures (figure 14) which was down 5% year-on-year.
- Affiliate companies are expanding throughout Europe. Results show a decrease in affiliate
businesses with 1-4 employees and an increase in businesses with 10-19 and 20-29
employees respectively.
- The biggest threat to Affiliate Earnings is still ‘Google Updates / Slaps’, however this figure is
down 5% on last years’ results.
- Of Affiliate Window’s 15% share of votes as preferred network, 25% of votes came from
affiliates based in European countries outside of the UK, despite not having a European
operation in place.
- The voucher affiliate model continues to grow despite an increasing saturation across the
market, up 4% year-on-year.
- 43% of European affiliates are planning to expand internationally over the course of 2012,
with the United States, United Kingdom, Spain, Germany and France being the most popular
countries for planned expansion.
- The tightening of consumers’ purse strings can be seen in the big-earning respondents with
all monthly commission-earning brackets (figure 12) over €500 dipping slightly.

Page 6
- The proliferation of the voucher model continues (figure 14) with a rise in its usage by
respondents. These figures will doubtless fuel debate that how this model is developed will
likely shape the future of the industry over the next few years.
- Social media’s standing in the spectrum of digital marketing is climbing, a fact that’s
probably in line with the heightening piles of investment cash being shovelled into services
such as Facebook and Pinterest.
- Bizarrely - even after months and months of headlines - nearly half of all respondents have
yet to take steps towards conforming to the E-Privacy Directive (figure 22).

Page 7
European Demographic Data, Geographies and Affiliate Information
Figure 1: Gender
Figure 2: Age
73%
27%
Male
Female
83%
17%
2011 Values
Male
Female
Male
Female
Under 18 18-24 25-34 35-54 55-64 65+
2012
2011
Under 18 18-24 25-34 35-54 55-64 Over 65
UK
France
Germany
Spain

Page 8
Figure 3: When Did You Start Work In Affiliate Marketing?
Figure 4: Which Of The Following Best Describes You?
Figure 5: Including You, How Many Employees Work In Your Affiliate Business?
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2012
2011
50.70%
26.70%
22.60% I own a registered affiliate
company
I work for an affiliate company
I do my affiliate activity part-time
1-4 5-9 10-19 20-49 50-99 100-499 500-999 1000+
2012
2011
1-4 5-9 10-19 20-49 50-99 100-499 500-1000 1000+
UK
France
Germany
Spain

Page 9
Figure 6: Have You Been Financially Funded In Any Way?
Figure 7: In Which Country Is Your Primary Operation?
Other Countries Specified:
9.80%
90.20%
Yes
No
11.61%
88.17%
2011 Values
Yes
No
2012
2011
Females working with the industry have jumped by 10% compared to our figures in 2011.
Germany has the largest number of female-to-male ratio, followed closely by the United
Kingdom.
Results show a decrease in affiliate businesses with 1-4 employees and an increase in
businesses with 10-19 and 20-29 employees respectively.

Page 10
Figure 8: Which Territories Are You Planning To Expand Into During 2012?
(43% are planning to expand)
Austria
Belgium
Denmark
Finland
France
Germany
Greece
Italy
Netherlands
Norway
Poland
Portugal
ROI
Spain
Sweden
Switzerland
Turkey
UK
USA
Other
2012
2011
UK France Germany Spain

Page 11
Figure 9: Which Verticals Do You
Work In With Your Affiliate Activity?
Figure 10: What Is Your Preferred
Payment Model?
Broadband & Internet Services Casino, Bingo & Gaming
Fashion Finance
Mobile Online dating
Retail Travel & Leisure
Other
CPA (Cost Per Acquisition) CPC (Cost Per Click)
CPM (Cost Per Mille) Hybrid / Tenancy
Revenue Share Other
Broadband Fashion Casino,
bingo &
gaming
Finance Mobile Online
dating
Retail Travel &
leisure
Other
CPA CPC CPM Hybrid/tenacy Revenue share Other
For those providing services in the casino & gaming sector, it was once considered a gold rush. Since
the various US lawsuits that have hit service providers, though, interest in the sector has waned. Proof
of this can be seen in the performance space where casino, bingo and gaming plays second fiddle to
nearly all other sectors in Europe’s four biggest regions (figure 9).

Page 12
Figure 11: How Would You Rate These Issues In Order Of Importance Within The
Country You Conduct The Largest Amount Of Business?
Figure 12: On Average, How Much Commission Do You Earn Per Month?
2012
2011
The tightening of consumers’ purse strings can be seen in the big-earning respondents with
all monthly commission-earning brackets (figure 12) over €500 dipping slightly from 2011.

Page 13
Figure 13: What Percentage Of Your Overall Company Turnover Is Attributed To
Performance Marketing?
2012
2011

Page 14
Figure 14: Which Affiliate Models Do You Work With?
Figure 15: How Important To Your
Earnings Is Contextual Advertising?
(i.e Adsense)
Figure 16:How Do You Generate The
Majority Of Traffic To Your Website?
2012
2011
21.20%
3.50%
25.10%27.30%
23%
Don't Use Contextual Advertising Not Very Important
Semi-Important Important
Very Important
Co-Reg CPL Lead
Gen
Paid
Search
SEO Social
Media
Other
2012
2011
As much as 55% of European Affiliates rely heavily on Search Engine Optimisation to
generate traffic to their website (figure 16) This is still a high amount but the figure is down
from 65% in 2011 as affiliates explore new avenues to generate traffic. Social Media (13%)
and Paid Search (12.7%) have increased in popularity compared to 2011 figures of 8% and
10% respectively.
The proliferation of the voucher model continues (figure 14) with a rise in its usage by
respondents. These figures will doubtless fuel debate that the model will soon hit its ceiling.

Page 15
Figure 17: Have You Used Pay Per Call?
UK
France
Germany
Spain
11.70%
88.30%
Yes
No
9.00%
91.00%
Yes
No
Usage of pay per call (figure 17) services has seen a gradual upturn even with the lack of
local offerings in Europe. Companies such as AdInsight, Ring Revenue and Freespee will
likely spur the technology to new strengths over the coming year.
The proliferation of the voucher model continues (figure 14) with a rise in its usage by
respondents. These figures will doubtless fuel debate that the model will soon hit its ceiling.

Page 16
Figure 18: Which Is Your Preferred Network You Currently Work With?
Figure 19: Which 5 Of These Are Most Important To You When Working With An
Advertiser / Merchant?
Affiliate Window
15% Affiliate Future
2%
Affilinet
8%
Commission
Junction
7%
Paid on Results
2%TradeDoubler
15%
Webgains
17%
Zanox
12%
LinkShare
3%
Google Affiliate
Network
2%
Other
13%
Webgains, Tradedoubler and Affiliate Window head up the list of preferred networks in this
year’s list, with Webgains replacing Tradedoubler as most preferred for 2012 EU-Wide.
New to the UK, Google Affiliate Network hasn’t been resting on the laurels it built in the
USA. In the two months since its official UK launch, the network has mustered a 2% market
share (figure 18). The next 12 months for Google Affiliate Network will be of great interest
to performance industry onlookers.

Page 17
Figure 20: Which 5 Attributes Would Encourage You To Work More Closely With
An Advertiser?
Figure 21: How Would You Rate The Quality Of The E-mails You Receive From
Agencies, Advertisers and Networks?
How can a Network / Advertiser / Agency improve their relationship with you?
“Better reporting tools so that we can provide
more accurate data to our users.”
“Provide deeplinks to the offers they want
affiliates to promote. I still see Voucher Codes
released without me receiving an email and
sometimes without a ready-made link.”
“Making account managers more accessible.” “By bringing on more big-brand advertisers.”
“More support, advice and tips on how to turn
traffic into sales.”
“Transparency on all levels from engagement to
profit.”
4.20%
18.40%
46%
27.60%
3.80%
Very poor Poor Neutral Good Very good

Page 18
“By offering more technology solutions that can
help manipulate the volumes of data we have
access to.”
“By having a website that is easy to understand
and use for beginners, including a clear
explanation of all terms (acronyms).”
“Maintaining three-way meetings between the
advertiser, the network itself and the affiliate.”
“Giving me access to stats on the go. A mobile
version / app would suffice!”
“By respecting their payment terms!” “By working with us as introducers of business,
not minions.”
“Transparency on deals, codes, and re-activity” “More transparency in the validation of sales.”
Figure 22: Do You Think Your Commissions Earned In 2012 Will Be More Or Less
Than In 2011?
2012 2011

Page 19
Figure 23: What Do You Expect To Be The Biggest Threat To Your Earnings This
Year?
2012
2011
UK
France
Germany
Spain

Page 20
Figure 24: How Positive Are You Regarding The Future Of Your Performance-
Related Activity Within Your Business?
Why?
Positive - “I’m only scratching the surface of what’s
possible so I’m confident that with a little work my
affiliate earnings will increase.”
Positive - “We still have a margin large
enough to evolve throughout the course of
this year.”
Negative – “The effort becomes too large relative to Neutral – “Difficulty in increasing organic
22.30%
48.60%
25.30%
3% 0.60%
Very positive Positive Neutral
Negative Very negative
19.12%
41.77%
35.75%
3% 0.71%
Very positive Positive Neutral
Negative Very negative
Very positive Positive Neutral Negative Very negative
Spain
Germany
France
UK
Google updates and slaps are going concerns for UK survey participants, more so than any
other country (figure 23).
France’s big fear is the culling of affiliates on programmes (figure 23).

Page 21
my earnings.” traffic.”
Very Positive – “Many advertisers and bigger
companies are only just getting started.”
Very Positive – “Increasingly people are
processing more and more online. This is
only good news for us.”
Positive – “Because Advertisers will always depend
on the support of other marketing channels.”
Neutral – “It is difficult to predict the future
in a rapidly changing environment.”
Negative – “Frequent Google updates and never-
ending internet-related legislation worldwide.”
Very Negative - “With more big companies
entering the space causes us problems.”
Figure 25: Have You Taken Any Steps To Conform To The EU Privacy Directive?
57.60%
42.40%
Yes
No
0
20
40
60
80
Yes
No
Interestingly more respondents are positive about the future of their performance-related activity
(figure 21) that not. The Spanish seem the most cynical of the larger four countries.
Compared to 2011’s figures, more respondents were either ‘very positive’ or ‘positive’ regarding the
future of their Performance Marketing Activity.

Page 22
If No, Why Not?
“Haven’t got to grips with it yet. Need to analyse
site.”
“I want to see how bigger players deal with it.”
“Fear it will reduce traffic” “I don’t think they will take anybody to court,
and eventually it will be dropped.”
“Awaiting more precise information” “I did not know about this – but will look into it
now!”
“Lack of information” “Ignorance”
“We are not aware of it” “Because it is not clear, it’s an ambiguous law.”
Bizarrely - even after months and months of headlines - nearly half of all respondents have yet
to take steps towards conforming to the E-Privacy Directive (figure 22).

Europeanaffiliatelandscapereport2012

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