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http://econsultancy.com/reports/affiliate-census The UK Affiliate Census 2009, which is backed by Affiliates4U and the leading affiliate networks, is the most detailed study available about the make-up of the affiliate community. The study, carried out in association with Affiliate Window, is essential reading for those who want to know more about affiliates, including how much revenue they are generating, how they are getting their traffic and which linking methods they are using. The 60-page report, based on a survey of more than 1,000 affiliates, looks in detail at the nature and quality of relationships affiliates have with networks and merchants.
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UK Affiliate Census 2009
In association with Affiliate Windowhttp://econsultancy.com/reports/affiliate-census
Linus GregoriadisResearch Director Econsultancy.com
Email: [email protected]
Website:http://econsultancy.com
UK Affiliate Census | http://econsultancy.com/reports/affiliate-census
Overview Methodology Findings
Affiliate businessesNetworksMerchants Communication and resourcesQuestions
Methodology Online survey in January 2009 Two years after the inaugural affiliate census Promoted by all leading networks to members Over 1,000 respondents
34% full-time 46% part-time20% hobbyists
All respondents UK basedUK Affiliate Census | http://econsultancy.com/reports/affiliate-census
| 13 January 2008 | Course Title| 4
Affiliate businesses
Revenues generated from affiliate businesses A third of affiliates (31%) earn less than £50
per month. 13% earn more than £50,000 per month (for
merchants)
True content (36%) and PPC (20%) top-rated categories.
PPC more important for full-time.Text links ( 35%) and banners (26%) top-rated
linking methods.Banners more important for part-time.
Ranking of affiliate categories and linking methods
UK Affiliate Census | http://econsultancy.com/reports/affiliate-census
Voucher-code / cashback sites Seen as a threat by 43% of affiliates. Could increase awareness about the sector.
UK Affiliate Census | http://econsultancy.com/reports/affiliate-census
“They will educate and reassure the public
masses about various sectors (cash-back, bingo, discounts),
opening up a much larger customer base for
us all.”
“Voucher code and incentive-based sites are going to
destroy affiliate marketing for normal people and small
businesses completely if the systems that are currently allowed for them remain
unchecked.”
“Cash-back incentives don't stop people from searching
for a still better deal, or reviews before they buy. Not
necessarily a threat - depends on how you present the
merchant to buyers, and what niche you're in for competitor
reasons.”
“These will of course damage existing content sites as more people are
aware of cash-back models.”
Last click wins rewards model
UK Affiliate Census | http://econsultancy.com/reports/affiliate-census
| 13 January 2008 | Course Title| 8
Networks
Ranking of different networks
UK Affiliate Census | http://econsultancy.com/reports/affiliate-census
Percentage of affiliates ranking #1 network
43%
18%
10%
9%
8%
5%
2%
2%
Most important criteria for selecting a network
UK Affiliate Census | http://econsultancy.com/reports/affiliate-census
Range of advertisers and tracking reliability deemed most important
Role of networks Includes both positive and negative sentiment
Failure to take responsibility for dubious affiliates.Lack of good support from some networks.Need for more transparency. Appreciation of networks and satisfaction.–Delivery of a professional service and tech
support.–Saves on time and effort.–Recognised/established networks can be
trusted. –Can help increase revenue streams.
UK Affiliate Census | http://econsultancy.com/reports/affiliate-census
“They still have a long way to go in
terms of providing a high quality, professional
service.”
“I think networks are a fantastic idea…It cuts out all
the hassle of dealing with individual advertisers and it saves the bother of joining dozens of individual affiliate
programmes...”
UK Affiliate Census | http://econsultancy.com/reports/affiliate-census
“There is a need [for] more transparency about
how merchants are ‘policed’, to ensure valid
sales are logged.”
“I would prefer quicker responses to request for assistance with technical
issues, and would prefer to discuss issues and solutions over the phone, rather than
via email.” “There appears to be a
lack of training to affiliate managers (on both a
network and merchant level) in understanding an
affiliate.”
“Trust is an important issue, when it comes to networks.”
“As affiliate marketing moves from an unregulated
profession to a reputable marketing channel,
networks will be relied upon to clamp down upon the ‘cowboys’ within the
industry.”
“They need to be more aggressive in
policing bad affiliates, even if it costs them
income.”
| 13 January 2008 | Course Title| 13
Merchants and sectors
Most widely promoted sectors
UK Affiliate Census | http://econsultancy.com/reports/affiliate-census
Travel / flights: 33%
Electrical goods: 29%
Gifts / gadgets: 28%
Fashion / Clothes / lingerie / accessories: (27%)
Entertainment / music: 26%
Computers / laptops / peripherals: (25%)
Home / Gardening: 23%
Books: 22%
% Change
Home / Gardening (+ 8%)
Gifts / Gadgets (+ 6%)
Electrical goods (+ 5%)
Health / Sport / Fitness (+ 5%)
Computer games and consoles (+ 5%)
Biggest climbers since 2007
UK Affiliate Census | http://econsultancy.com/reports/affiliate-census
Reasons for not promoting a merchant
UK Affiliate Census | http://econsultancy.com/reports/affiliate-census
Reasons for dropping a merchant
UK Affiliate Census | http://econsultancy.com/reports/affiliate-census
Demonstrating loyalty to affiliates HonestyFlexibilityBetter communication
“Open communication is good. [It is important] to
work as a team. After all, both the affiliate and the
merchant have a common goal – sales.”
“Be willing to look at alternative ways of
promoting the company, beside the traditional methods.”
“Why should a merchant show loyalty? I have no
loyalty; if another merchant pays me, then I will redirect traffic there. I don’t expect loyalty, as I
can’t reciprocate.”
“Better communication, fair
incentives, maximum notice when terms
change.”
UK Affiliate Census | http://econsultancy.com/reports/affiliate-census
Reasons for working with merchants directly
UK Affiliate Census | http://econsultancy.com/reports/affiliate-census
Reasons for not working with merchants directly
UK Affiliate Census | http://econsultancy.com/reports/affiliate-census
Direct relationships: time-consuming
| 13 January 2008 | Course Title| 21
Communication and resources
Ranking of different sources of information
UK Affiliate Census | http://econsultancy.com/reports/affiliate-census
Level of communication with merchants
UK Affiliate Census | http://econsultancy.com/reports/affiliate-census
Opportunities and threats
UK Affiliate Census | http://econsultancy.com/reports/affiliate-census
Opportunity
Threat Mobile internet 55% 10%
Recession 55% 30%
Google 30% 44%
Super-affiliates 22% 36%
Voucher-code sites 20%43%
How to revolutionise the industry
UK Affiliate Census | http://econsultancy.com/reports/affiliate-census
“Consolidate the number of networks
and agencies. Hopefully, the
forthcoming recession will bring this about.”
Enforcing stricter rules for voucher code sites. Skills and training.Better tracking to ensure fair commissions. Communication and transparency.Competition to prevent over-saturation in the
industry.
“Decent analytics for merchants to see the sales process and the ways the
affiliate sectors influence it. i.e. late stage addition of voucher
code or cash-back affiliate. They will then see the true benefit of content vs. non
content affiliates.”
“Technological advances in tracking and monetising links
from social networking sites and blogs in unobtrusive
formats.”“Training
merchants to understand
online marketing.”
Questions?
All rights reserved. No part of this presentation may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright © Econsulancy.com Ltd 2009.
http://econsultancy.com/reports/affiliate-census
UK Affiliate Census | http://econsultancy.com/reports/affiliate-census