Carla Arrindell, Publisher Director of Online Media Group (OMG) has commented on the 2008 Affiliate Marketing Survey* which concluded that merchants were more positive about the sector than ever, but that budgets were falling.

“Marketing budgets are inevitably coming under pressure at the moment and we have seen some capping of affiliate spend – for a variety of reasons. However, overall our experience during the last 12 months, particularly in the retail and travel sectors, has been very positive. We’re expecting 2008 to be a record year for OMG but - we cannot afford to be complacent, so we are also investing heavily in the future of affiliate marketing.

“The Survey highlights restricted budgets as one of the main potential barriers to growth. Affiliate marketing is a long-term game, and sustainable relationships with affiliates can contribute to a merchant’s overall growth. Affiliate marketing is a ‘cost of the sale’ rather than an ‘expense’. The channel must be optimised so that spending works as hard as possible - the right offers through the right affiliates, paid the right commissions will keep sales and revenue coming in. OMG has always believed that investing in the right relationships with skilled account handlers is the best way to achieve this and reduce the burden on merchants’ budgets and internal resources.

“In the current economic environment, the affiliate sector has to keep developing in order to retain and grow its share of the budget. To help our clients maximise campaigns, we are spending an increasing amount of time establishing closed bidding groups, ensuring brands are protected while reducing their PPC spend. Also, with careful management, cashback sites can be a fantastic volume driver and will continue to deliver attractive growth across a range of sectors. In addition, we are active in a number of emerging affiliate sectors such as social networks and expanding our reach globally so that we can drive multi-territory growth in line with merchants’ ambitions.”

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For further information please contact:

Hilary Ball at Online Media Group on 01603 697700
Gordon at MAW Communications on 01603 505845

If you would like to link to our website please use http://www.omguk.com

Notes to editors:
*The Affiliate Marketing Survey Report 2008 was conducted by digital research publisher E-consultancy and affiliate marketing agency R.O.EYE.

The report can be found at www.e-consultancy.com/publications/affiliate-marketing-survey-report-2008

OMG Network has been running affiliate programmes for some of the UK’s biggest brands since 2002. Clients include; Direct Line, Barclays, WHSmith, Eurostar and Cancer Research UK.

OMG Network was the first network to introduce affiliate account managers and still maintains a higher ratio of account managers to advertisers and affiliates than any other established network. It is the most successful UK network in the financial and insurance sectors.

In September 2008, OMG expanded into Europe. The Group launched OMG Poland with an office in Warsaw and also began running performance marketing campaigns in France, Germany and Spain.

Published on: 12:00AM on 17th September 2008