Internet Advertising Bureau (IAB) research has revealed 61% of advertisers will increase their spend on the affiliate channel in 2013. It’s good news for the channel's future as it increasingly tries to incorporate other performance models in campaigns.
The Annual Affiliate Advertiser Survey supported by A4u has showed affiliate to be one of the top choices for brands. There’s been a 45% uplift in advertisers that invest more than 31% of their digital marketing budgets on affiliate in 2012.
Managing Director of Rakuten LinkShare, Mark Haviland, believes there to be room for more growth. ““It’s clear that as the affiliate sector matures, marketers are keen to invest more in the CPA performance model,” he said.
Haviland’s statement is underlined by the fact that new advertisers are queuing up to invest in the channel. According to the IAB results, almost a quarter of advertisers (23%) reported their affiliate programmes were established during the previous 12 months.
Commission payments are on the up too. Of those polled, 21% of advertisers reported a rise in commission payments of over £31,000, which included a 16% hike in advertisers paying monthly commissions of over £100,000.
Larger brands are beginning to realise the benefit of the pay-per-performance model. More than half (52%) of respondents reported online sales revenues in the last year of more than £10 million.
IAB Affiliate Marketing Council Steering Committee member and Market Unit Leader for Tradedoubler, Dan Cohen, spoke of the burgeoning confidence and innovation he has been noticing in the channel.
“Established advertisers are increasing spend and new advertisers are adding affiliate to their marketing toolkit which can only be good for the industry overall,” he said. “New and innovative business models that we’ve seen in the affiliate market widen the scope for more advertisers to benefit from this uniquely rewarding channel.”