The document summarizes affiliate marketing trends in the UK market in February 2010. It discusses that the UK affiliate market was worth £3.82 billion in 2008 and projected to cross £4 billion in 2009. It then outlines how affiliate marketing works by having third parties advertise products and services in return for commission. Finally, it discusses the client perspective on why an affiliate marketing strategy is beneficial by allowing companies to drive revenue, expand reach with limited budgets, and complement other marketing activities.
3. The UK affiliate market was worth £3.82bn in 2008, 22% growth in 2008 and projected to cross £4bn 2009. Source: Econsultancy, Nov 2009 02
4. The UK market for Search Engine Marketing was worth £2.42bn in 2008, 23% growth in 2008, projected to grow by 12% in 2009. Source: Econsultancy, Nov 2009 Paid Search forms 59.3% of all online advertising in the UK. Source: IAB UK, Apr 2009 03
13. Typically Direct Response Goals Target marketing Cost per sale Contribution to profit of each incremental sale Revenue generated per £1 spend Cost per acquisition - paid to the affiliate (CPA) Conversion Rate Earning per Click (EPC) 12
15. Drive revenue Expand reach with limited budget Low financial risk Easy to measure Improve brand visibility and awareness Influence other marketing activities Complement other marketing activities Board directors increasingly get it Increasingly accepted part of the marketing mix 14