Conducted with PwC, the IAB UK has released its annual digital advertising spend survey, which found UK ad spend grew by 15.4% year-on-year in 2019, reaching £15.7 billion.
In relation to the IAB/PwC Affiliate Marketing Study, which collated data from nine affiliate marketing businesses, combining commissions and fees, the latest survey found that spend in affiliate marketing grew 8.4% year-on-year to £510 million in 2019 — up from 6% reported from 2017-18.
Affiliate marketing proving resilient
The results come amid turmoil in the advertising industry that could wipe more than £4 billion from the total for 2020, according to the latest Advertising Association/WARC Expenditure Report.
Reviewing the latest figures and the industry’s response to Amazon’s recent decision to cut commission rates in several product categories, Awin strategy director Kevin Edwards said the outlook for 2020 could see affiliate budgets and the channel prove more resilient as brands focus more on guaranteed sales.
“Affiliate businesses have reported buoyant trading in certain retail sectors such as groceries, homeware and health and beauty in the face of the coronavirus. While some advertisers have paused their campaigns and others reduced commissions, and the travel sector yet to see any comeback, 2020 could see affiliate budgets prove resilient as brands focus on the strong return on investment and guaranteed sales the channel offers,” commented Edwards.