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Affiliate marketing on the rise

March 2008

The survey reveals a trend for increasing spend in affiliate marketing from the retail sector with 62% of retailers saying they are spending more in the channel than two years ago. This investment is set to continue with 71% of the retailers surveyed planning to spend more in the affiliate marketing channel over the next two years.

Two thirds of the retailer marketers surveyed said that affiliate marketing drives a ‘high’ or ‘medium’ volume. This compares with a third of retail marketers who see a high volume from email marketing, 14% who consider display advertising to deliver a high volume and just two percent who see a high volume from mobile advertising. However, paid search is revealed as the most effective volume driver with 65% of retailers finding it drives a high volume.

The research reveals that retail companies spend 19% of their online budget on affiliate marketing compared to the average of 18% across all industries. This is more than travel marketers spend at just 16%, but is less than financial services marketers who spend an average of 21% of their online budget on affiliate marketing and behind the telecoms industry which spends almost a quarter of their online budget in the channel.

David Walmsley, Head of Web Selling, John Lewis Direct comments, "Johnlewis.com had its biggest ever Christmas this year. The commercial success was driven by a great site and a great range, but also by smart use of our marketing budget. We've found that our affiliate partners have performed consistently well for us, driving traffic to our site with a great propensity to buy. In 2008 we are looking to strengthen and deepen our affiliate relationships, especially with sites that can add unique value to our shoppers' online experience."

Full details of the Affiliate Marketing Merchants Survey report are available from www.buy.at or to E-consultancy subscribers, or on a pay-per-view basis, at E-consultancy

This article is written by Marcus Austin (Web Editor) and sourced from www.internetretailing.net