IAB Affiliate Advertiser Survey
In association with A4U
October 2012
Methodology
Objective:
To size the growth of advertising spend on affiliate
marketing channel, map trends, and identify sector
hotspots and opportunities
Sample:
Based on 115 advertiser & merchant companies.
Methodology: Online survey, hosted on Survey Gismo
Survey:
5-10 minute survey live during September –
October 2012
Quick summary
• 100% of advertisers survey expect their online revenues to grow in 2013, with 44%
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•
•
•
•
•
•
•
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
Source: IAB A4U Affiliate Marketing Survey, October 2012
Market sectors surveyed
Qn: What market sector do you operate in?
32%
Retail: Other*
Food
Cosmetics/toiletries
22%
Home & garden
14%
10%
Fashion / clothing
* Retail: Other includes: health,
jewellery, software, multicategory, music cds
Source: IAB A4U Affiliate Marketing Survey, October 2012
10%
3%
3%
4%
2%
Other includes: Business and Industrial,
Utilities, Health, Pets,
Affiliate channel is engaging more brands with high
online revenues: 52% report £10m+ annual t/o
Qn: What is your company’s online turnover per annum?
Up to 500k,
12%
£500k £2.5 million,
13%
Over £10
million, 52%
£2.6 million
- £5 million,
12%
£5.1 million
- £9.9
million, 13%
Source: IAB A4U Affiliate Marketing Survey, October 2012
Over half of the advertisers
surveyed reported
£10million + annual online
sales revenues, a strong
indicator that the affiliate
channel is attracting high
spending brands
Affiliate channel’s growth in 2013 fuelled by increased
marketing investment in affiliate programmes: 72% say
commission payments will continue to increase
Qn: Do you forecast a rise or fall in affiliate commission payments during the next 12 months?
Decrease,
12%
Expect increased payments (72%)
Expect decreased payments (12%)
Stay the
same, 17%
Increased
Improved publisher
investment in
network
affiliate programme
Other
Rise, 72%
Economic
conditions
Appropriateness
of product /
service for affiliate
channel
Reduced
investment in
affiliate
programme
Other
Expect payments to stay the same (17%)
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•
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Significantly almost three quarters of respondents expect
monthly commission payments to rise during 2013
81% of those expecting increased payments (see note),
say they’re increasing investment in their affiliate
programmes pointing to greater reliability of and confidence
in the channel.
Only 12% expect commission payments to decrease and
54% of those cite economic conditions for their prediction.
Source: IAB A4U Affiliate Marketing Survey, October 2012
Economic conditions Appropriateness of
product / service for
affiliate channel
Other
NOTE: base size of reasons for rise, fall and
no change inconsistent and so regard charts
as narrative indicators only.
Advertisers making monthly commission
payments of over £31K significantly increased
Qn: What is your average monthly affiliate commission payment?
•
•
(Commission payments over £31K show a 21% uplift from 2011 to 2012)
Advertisers paying out more than £100K per month in payments increased by 16%
19%
34% 41%
15%
25%
22%
19%
19%
41%
41%
2011
2012
Source: IAB A4U Affiliate Marketing Survey, October 2012
100k+
31 - 100k
11 - 30k
0 - 10k
Affiliate’s increased share of marketing investment is
clear indication of the channel’s strengthening role
within the marketing mix
Qn: What % of your overall online marketing spend is attributed to affiliate marketing?
Programmes investing less than 10%
of their marketing budget in the affiliate
channel decreased by:
18%
Advertisers investing less than 10% of their
marketing budget in the affiliate channel fell
from 51% (2011) to 42% (2012)
Source: IAB A4U Affiliate Marketing Survey, October 2012
Programmes investing more than
31% of their marketing budget in
the affiliate channel rose by:
45%
Advertisers investing more than 31% of their
marketing budget in the affiliate channel rose
from 11% (2011) to 16% (2012)
NOTE: Online marketing spend defined as media spend within paid search, online
display, email marketing, lead generation, social media channels and content
marketing.
Greater need for marketing ROI continues: increased
marketing investment in affiliate channel predicted
Qn: Are you planning to increase your affiliate spend during the next 12 months?
Almost 2/3 of all
advertisers surveyed said
they would be increasing
their investment in the
affiliate channel in 2013.
Don't
Know,
23%
No, 16%
Source: IAB A4U Affiliate Marketing Survey, October 2012
Yes,
61%
As the affiliate sector matures, it’s attracting a
significant volume of new advertisers, indicating
recognition of the channel’s effectiveness
Qn: How long have you been running your affiliate programme? (to the nearest full year)
6 or more
years,
28%
6 months,
12%
1 year,
11%
5 years,
6%
4 years,
13%
23% of respondents report their affiliate
programmes were established within the
last 12 months indicating that the
channel has significant attractions to
marketers
2 years,
18%
3 years,
11%
58% respondents are running seasoned
affiliate programmes, more than 3 years
old. 28% report their programmes are 6
years and older
6 or more
years,
28%
1 year,
11%
5 years,
6%
4 years,
13%
Source: IAB A4U Affiliate Marketing Survey, October 2012
6 months,
12%
2 years,
18%
3 years,
11%
Growing consumer ‘deal searching’ trend through cashback
and voucher code sites produce principle revenue streams
for 49% of advertisers surveyed
Qn: Which affiliate type provides your principle revenue?
29%
18%
20%
15%
11%
3%
3%
Advertisers benefiting from growing
consumer trend to ‘deal-search’ online.
Source: IAB A4U Affiliate Marketing Survey, October 2012
2%
Branded affiliate sites producing reliable
advertiser revenues
Qn: What type of affiliate / publishers do you work with?
Qn: Which affiliate type provides your principle revenue?
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
35%
Publishers worked with
90%
Principle revenue sources
30%
81%
75%
25%
67%
29%
20%
20%
51%
18%
43%
11%
Source: IAB A4U Affiliate Marketing Survey, October 2012
15%
15%
35%
10%
3%
2%
3%
5%
2%
0%
Collaborative style emerging as advertisers blend affiliate
programme planning between in-house teams, agencies
and networks
Qn: Thinking about how you plan and manage your affiliate programme, is the main strategy generated:
2012
7%
Network
26%
18%
2011
Agency
15%
In House
21%
A combination of
two or more
64%
50%
Source: IAB A4U Affiliate Marketing Survey, October 2012
Note: In 2011 there was no “A combination of two or more” option
Majority still using 1 affiliate network but declining,
while users of 2-3 networks growing significantly
Qn: How many affiliate networks do you work with?
59%
52%
2011
2012
26%
21%
11%
7%
13%
10%
3
More than
3
1% 1%
0
1
Source: IAB A4U Affiliate Marketing Survey, October 2012
2
For more information
For more information contact:
Clare O’Brien, Industry Programmes Consultant
clare@iabuk.net
020 7050 6963