Affiliate and partner marketing is often referred to as the best kept secret in the digital world. It generates a significant 10% of all e-commerce sales in the UK and offers brands a pay-for-performance model that maximizes return on investment. At a time when advertisers are vying for efficiency and measurable results, what's not to like about a channel that offers such value? However, despite its effectiveness, the affiliate channel is sometimes overshadowed by flashier marketing solutions. That's exactly what the APMA aims to do, and with the release of its State of the Nation 2024: Affiliate and Partner Marketing report, we want to explore why affiliate marketing deserves its rightful place at the forefront of any advertising strategy.
A center for innovation and growth
Affiliate marketing has always been the testing ground for cutting-edge technology and new business models. Whether startups are bringing the next big innovation to market or established brands are refining their strategies, this channel is the go-to channel for anyone looking to test, learn and optimize. Affiliate partners can help develop solutions faster than traditional technology teams, providing agility in the face of fast-moving digital trends. Additionally, partnerships with major eCommerce publisher partners are easily accessible through affiliate programs, giving brands unmatched exposure.
The Affiliate Industry in 2024: A Deep Dive
The report provides a comprehensive insight into the affiliate and partner marketing industry. According to retail data, affiliate marketing contributes a staggering £21 billion to ecommerce sales for UK retailers. In 2023, UK brands invested £1.67 billion in affiliate campaigns, representing 17% year-on-year growth and far outpacing broader digital marketing budget increases. Post-pandemic, sectors such as travel saw a dramatic rebound, with affiliate spending increasing 160% since 2021. With an average return of £15 for every £1 spent, the affiliate model continues to prove its worth.
The Growing Reach of Affiliate Marketing
The industry's growth shows no signs of slowing down. Affiliate marketing now generates almost a million sales for UK brands every day and more than £40,000 is captured by affiliate companies every minute. Influencer marketing saw the largest year-over-year growth, with spending increasing 42% from 2022 to 2023. Content websites and price comparison services (CSS) also thrived, with growth of 34% and 39% respectively. Interestingly, UK brands now spend 15% more on affiliate marketing than their US counterparts, showing the increasing importance of the market in the UK.
A bright future for affiliate marketing
With more than 50% of UK brands planning to increase their affiliate budgets in 2025, the industry continues to grow with 67,000 active UK publisher partners and over 12,000 affiliate programs. SMEs are contributing significantly to this growth, driving new opportunities and innovation in the channel. However, publishing partners are calling for greater industry collaboration on challenges such as Google's impact on tracking and commission structures. Through collaboration between brands and publishers, affiliate and partner marketing will remain a key driver of e-commerce success in the future.
Want to find out more about the state of affiliate partnerships in the UK? Download the full report here.
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