Posted September 27, 2007 9:32 am by with 5 comments

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By Janet Meiners.

According to a report by E-consultancy retailers in the UK are seeing positive results from affiliate marketing. The research group surveyed 239 merchants this year and most of them have both online an offline presence.

A full 95% of brands said that affiliate marketing is ‘very cost-effective’ or ‘quite cost effective.’ The next most effective ways to acquire a new customer is paid search and then email marketing. On average the retailers spend 18% of their online marketing budget on affiliate marketing.

Retailers like affiliate marketing (also called CPA or cost-per-acquisition) because they only pay an affiliate when a sale is made.

Kevin Cornils, CEO of explains, ‘Affiliate marketing has proven itself as the most cost effective online channel to drive incremental volume. It works for marketers because they only pay for activity that generates genuine sales?” He even went so far as to say that affiliate marketing “is a guaranteed positive ROI if managed correctly.” You can’t get much more glowing than that.

The research was sponsored by, the UK’s largest independent affiliate network. They are like CJ in the US, with brands like T-Mobile and Capital One. Business is good – with 250% growth in turnover year-on-year since 2004.

The industries most benefiting are telecom, financial services, and travel retailers.

Another interesting fact is that most retailers work through an affiliate network. It’s almost all – 90% and they’re seeing the best returns. They are choosing networks based on how they interact with networks.

Affiliate marketing is growing fast, here are some facts from the report:

  • 78% of brands set to increase their investment in affiliate marketing over the next 2 years.
  • 78% have already increased their spend over the past two years—many times drastic increases.
  • 23% of UK marketers have more than doubled their investment since 2005.

Research report by to be released on 26th September

The numbers are incredible. Affiliate marketing is still emerging in the UK but growing at a very fast pace. What does that mean for affiliates? Opportunity.

About Janet Meiners

Janet Meiners always wanted to be a reporter but prefers the immediacy of blogging. Known as Newspapergrl, she has freelanced for newspapers, City Search, and business magazines. She reports on internet marketing and online trends.

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  • The UK market were a little slow to catch on to affiliate marketing, but UK based retailers are now definitley catching on to it. I’m UK based and over the last 12 months I’ve noticed a lot more UK specific vendors coming online – makes it a lot easier to sell into UK markets with UK products delivered from UK warehouses.

  • As Janet says affiliate marketing is booming and while still emerging in the UK you should get in quickly. So, if you’re interested in dovetailing on the succes of others, take a look at this.

    I recently stumbled across this program which guarantees $20,000 in 20 days or your money back. I’m giving it a go and at day 12 have already made $5,000. Suggest you have a look, you’ve got nothing to lose.

  • Well we can say that the UK Lotto market grows constantly. Not just within the UK. Expads like to play while they are abroad for example.

    Trustworthiness is the key as usual.

    see details at
    (UK Lotto is just one of their markets to reach)

  • I’m interested in this area myself.

    LTS First Aid Specialists our Health and Safety business does Occupational First Aid Training here in Ireland and we are offering 10% commissions on business brought in by affiliates.
    I’d like a more systematic or automated approach to it though. Any suggestions?