Massive ROI for UK Affiliate Marketing in 2013Written by Michael Levanduski
January 29, 2014 # 8:36 am # Industry News, Specials # 2 Comments
The second annual Online Performance Marketing study conducted by PwC for the Internet Advertising Bureau UK has been released, and it has some pretty encouraging numbers for anyone involved with affiliate marketing. While the study looks primarily at the UK market, much of the data can be used as an excellent indicator of the state of this industry.
In the UK, businesses spent One Billion Euros on affiliate marketing and lead generation in 2013, which is 15% more year-over-year. This is quite a significant investment, and shows just how confident businesses are in the effectiveness of affiliate marketing. The companies that spent this money were rewarded with incredible returns over the year as well. The study found that affiliate marketing generated 14 Billion Euros in 2013.
This means that companies got an average return of 14 Euro for every 1 Euro they spent on affiliate marketing. As anyone in marketing knows, this is an excellent rate of return. As more and more businesses see this type of statistics, they will undoubtedly want to get in on this type of performance marketing.
UK consumers made over 150 Million purchases (that is three purchases for each adult in the country) through affiliate websites, totaling about 13 Billion Euros. The other 1 Billion was generated from contact forms that were submitted by the consumers.
One statistic which I personally found very impressive is that online performance marketing accounted for about 10% of all UK e-commerce retail sales in 2013. This is quite a significant number, and it shows that the trend is very strong toward affiliate marketing in the UK, and there is little reason to think a similar growth trend will occur in other countries around the world.
Dan Bunyan, the PwC manager, said, “It isn’t just the big publishers, or ‘super-affiliates’ who generate revenue through OPM. It’s opened up a new and growing industry among the ‘long tail’ where Individuals and small publishers with specialist knowledge of a particular area can produce websites and then automatically generate advertising revenue.”