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Affiliate marketing spend predicted to rise
Category: Affiliate Marketing
Online advertisers in the US will spend $3.3 billion (£1.7 billion) a year on affiliate marketing by 2012, a new report has suggested.
Published by JupiterResearch, the study indicated that spending will see a significant increase compared with today's figure of $2.1 billion due to its performance-based, low risk model - a trend that may also apply in the UK.
The report also suggested that affiliate marketing tends to see a relatively small number of affiliates responsible for a large chunk of sales and traffic as marketers choose to work with those who can drive the most traffic to their websites as part of their affiliate management strategies.
"Strong affiliates that have quality content and responsible marketing practices succeed within the changing search environment and reap the benefits of a growing ad arena," commented Patti Freeman Evans of JupiterResearch.
However, Google's power in the search engine marketing sector through its Quality Score scheme could yet impact on the growth of the market, as it stops lower-quality affiliates being able to buy paid search, JupiterResearch said.
Jeff Molander of Molander & Associates recently told E-consultancy that affiliate marketers need to do more to measure their advertising strategy's efficiency, as well as its effectiveness to tackle the problem of affiliates "cannibalising" other sales channels.