***New research proves affiliate marketing sector has come of age - and it is good news for publishers***

E-consultancy’s “Affiliate Marketing – A Buyer’s Guide”, published today, projects £500-£600 million of total sales generated through the UK affiliate networks for 2004. This represents at least double the affiliate turnover compared with 2003 and with the IMRG forecasting £17bn worth of e-commerce sales in the UK for 2004, affiliate marketing will account for up to 3.5% of total UK e-commerce sales.

“The only surprising thing about market growth in affiliate marketing is that it hasn’t grown even faster,” Nicky Iapino, Chief Operating Officer, dealgroupmedia

The research reveals that currently the most active sectors for affiliate marketing are the adult, gambling and retail sectors. These will continue to experience heavy investment in affiliate marketing. However, over 2004, the three sectors expected to experience the greatest growth in affiliate marketing are the mobile phone, finance (particularly insurance) and travel sectors. Hot on the heels of these are the entertainment (particularly gaming) and internet-related services (particularly broadband) sectors.

Over 2004 it will continue to be the big brands that lead the way in terms of total spend on affiliate marketing. SMEs are increasingly getting involved in affiliate marketing but do not always have the resources or expertise available to run an ongoing program.

“We see the dynamic in the development of affiliate marketing as being very similar to what has happened with search engine marketing. There are the smaller early adopters, followed by increasing spend from the big brands, and then finally the affiliate solution providers will focus on the SME and B2B markets as other areas become more saturated,” says Ashley Friedlein, CEO, E-consultancy.

The key trend for affiliate marketing in 2004 will be the increased integration of affiliate marketing into the overall marketing mix. Currently affiliate marketing’s contribution to merchants is typically measured simply in terms of the value of additional sales delivered. Within a year affiliate marketing will be judged not just for the quantity of sales it can deliver, but the longer term value it delivers and its efficiency of marketing spend.

“Affiliate Marketing – A Buyer’s Guide” contains extensive information on how to set up and run a successful affiliate marketing program as well as detailed profiles of all the leading UK affiliate solution providers. The full paid-for report can be downloaded from http://www.e-consultancy.com/publications/affiliate-marketing-buyers-guide/. Individual subscribers pay just £99 per year to access the full range of exclusive content featured on E-consultancy. A free sample of the report can be downloaded which includes market data and trends as well as an overview of the leading affiliate solution providers operating in the UK.

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----Notes to editors----

Images of the publication, screenshots of E-consultancy and photographs are available of Ashley Friedlein upon request.

About E-consultancy:

Since 1999 E-consultancy has provided UK e-business and marketing professionals with access to the best information and advice to help them get the most out of interactive channels:

* Information - Specially commissioned reports, white papers and guides as well as 100,000+ pages of articles, case studies and features from leading sources.

* Advice - Exclusive roundtable events, Beauty Parades, bespoke training courses, seminars, expert forums and a network of over 40 specialist e-business consultants.

E-consultancy charges for individual subscriptions and multi-user corporate membership as well as for bespoke training and research work. E-consultancy has over 18,000 registered users, 30% of whom are CEOs, Directors or Senior Management.

E-consultancy was co-founded in 1999 by Ashley Friedlein and Matthew O'Riordan. Ashley is a twice best-selling Internet author. E-consultancy's shareholders include Philip Redding, former Managing Director of Wheel, which he helped grow to the largest UK new media agency.

About Ashley Friedlein, CEO, E-consultancy.com:

Ashley Friedlein began his career in digital media at Pearson and Bloomberg, before becoming Lead Strategist at Wheel, where he successfully managed the development, delivery and ongoing maintenance of several major Internet sites, in particular for media owners.

Ashley is also the author of the books "Web Project Management: Delivering Successful Commercial Web Sites" and "Maintaining and Evolving Successful Commercial Web Sites: Managing Change, Content, Customer Relationships and Site Measurement" [Publishers Elsevier Science & Technology Books].

---Contact Information---

For more information about this release or E-consultancy contact editor Chris Lake at pr@e-consultancy.com or call 020 7071 8612

Published on: 12:00AM on 10th May 2004