The affiliate marketing sector will drive an estimated £4.62bn in UK online retail sales during 2010, according to a report published this week by Econsultancy.

The Affiliate Marketing Buyer’s Guide 2010, the most comprehensive report available on the UK’s digital performance marketing industry, estimates that the sector grew by 8% in 2009 and will expand by a further 12% in 2010.

According to the report, the sector was worth £4.13 billion last year, when an estimated £245 million was paid in commissions and fees to affiliates and networks.

In line with the sector’s overall growth, the value of commission and fees will increase to £275 million for 2010, according to Econsultancy.

The £4.62 billion figure should be seen in the context of figures released by the Interactive Media in Retail Group (IMRG), which predict that online sales during 2010 will hit £56 billion.

The affiliate marketing industry will be responsible for 8% of all online sales within the UK during 2010 according to these figures.

Econsultancy’s Research Manager Aliya Zaidi said: “Econsultancy strongly believes that the sector will continue to add value to the customer journey and drive significant sales for companies which they wouldn’t have otherwise made.”

She added: “The harsh economic climate has caused problems for the sector but it has also benefited from a shift in marketing emphasis to performance-based marketing and online channels.

"There is also increased consumer demand for bargains, coupled with the growing trend towards researching purchases online. Increased consumer thriftiness has meant opportunities for affiliates offering deals, discounts and voucher codes.”

The Econsultancy / ExactTarget Marketing Budgets 2010 Report, published at the start of this year, found that 36% of responding companies were planning to increase their affiliate marketing budgets compared to only 9% who said that they were planning to decrease them.

Key affiliate market trends in 2010

-) Affiliate marketing prospers in difficult economic climate
-) Transparency holds key to enhancing industry reputation
-) Consumers turn to voucher-code and cash-back websites
-) Case for multi-attribution model gains momentum
-) Emerging channels drive affiliate marketing innovation

About the Affiliate Marketing Buyer’s Guide

The guide is aimed at organisations and businesses trying to understand and select a supplier from within the affiliate marketplace, or who are currently reviewing their activity in this area. It is also relevant for anyone wishing to engage, understand or research the complexities involved in this market.

Report URL http://econsultancy.com/reports/affiliate-marketing-buyers-guide

Which companies are featured in the buyer’s guide?

The affiliate networks profiled are:

Affilinet, Commission Junction, Digital Window, LinkShare, Online Media Group (OMG), Paid On Results, TradeDoubler, Webgains

The agencies profiled are:

7thingsmedia, Affiliate Program Advice, Altogether Digital, Azam Marketing, bigmouthmedia, Existem Affiliate Management, Media Contacts, R.O.EYE, Stream: 20, ZenithOptimedia

Media contacts:
Linus Gregoriadis, Director of Research, Econsultancy
(e: linus.gregoriadis@econsultancy.com t: 0207 269 1465)

Aliya Zaidi, Research Manager, Econsultancy
(e: aliya.zaidi@econsultancy.com t: 0207 269 1466)

Econsultancy

Econsultancy is a digital publishing and training group used by more than 200,000 internet professionals every month.

The company publishes practical and time-saving research to help marketers make better decisions about the digital environment, build business cases, find the best suppliers, look smart in meetings and accelerate their careers.

Econsultancy has offices in New York and London, and hosts more than 100 events every year in the US and UK. Many of the world's most famous brands use Econsultancy to educate and train their staff.

Some of Econsultancy’s members include: Google, Yahoo, Dell, BBC, BT, Shell, Vodafone, Virgin Atlantic, Barclays, Deloitte, T-Mobile and Estée Lauder.

Join Econsultancy today to learn what’s happening in digital marketing – and what works.

Call us to find out more on +44 (0)20 7269 1450 (London) or +1 212 699 3626 (New York).

Published on: 11:09AM on 19th August 2010