Members of our network and those who follow Webgains on social media will probably remember our team sharing the Affiliate and Partner Marketing Association’s (APMA) 2024 Advertiser and Publisher during the response collection phase. As a founding member of the organisation, we continue to offer our full support to all APMA initiatives and have been really pleased to see this non-profit go from strength to strength since its foundation almost two years ago.
Yesterday, The APMA – the only collective voice for the affiliate and partner marketing industry in the UK – has published the results of its 2024 research initiative. Thanks to the input of hundreds of our industry colleagues and many Webgains partners, the report shows an extremely positive outlook for our channel in the UK market.
Talking about the report, APMA Founder Kevin Edwards said: “Affiliate is the original performance marketing channel, but it can often fly below the radar. This report cements it at the heart of a brand’s acquisition plans; there is an affiliate for every brand out there and that’s the beauty of the channel. We’re a test and learn hub for every new technology and innovation and savvy retailers are now fully invested, thanks in no small part to our risk-free commercial model.”
Those who download the report will find reams of insightful data and statistics including:
- The Affiliate and Partner Marketing industry drives £21bn in ecommerce sales for UK retailers.
- Return on investment: UK brands can expect, on average, to track £15 for every £1 spent (using submitted data).
- More than 50% of UK brands intend to increase their affiliate spend in 2025
The report’s publication was marked this week by a special ‘State of the Nation‘ affiliate marketing event in London hosted by The APMA. A highlight of the events agenda was surely an industry leaders panel session. Representing Webgains in this discussion is our UK Publisher Director Bryony Hatherley.
“This fantastic report provides a clear and insightful overview of the attitudes towards affiliates,” said Bryony.
I was pleasantly surprised by several points, but in particular it’s great to hear that 57% of advertisers plan to increase their spend in the affiliate channel in the next 12 months. As someone who manages publisher relationships, I’m always pleased to hear that there might be appetite and ambition for new partnerships so I’m excited to see what the next 12 months will bring.”
Following this afternoon’s panel, we’ve plucked out some of Bryony’s key takeaways and advice for brands and publishers alike. Here’s what Bryony had to say on…
Brands increased investment in content creation – influencer spend up 42% YoY and content up 34%
- This growth is extremely reflective of what we’ve seen at Webgains.
- With £1 in every £4 being invested in content, it is certainly an area brands should be looking at for Black Friday and peak Q4 trading this year
- Content is an extremely reliable and effective channel and this statistic shows that brands value creativity in their efforts.
- Influencers and content partners can act as a powerful medium to extend and develop a brand’s message whether that be through reaching a certain audience, aligning with a specific publication or something else.
- Commercial models of content affiliates have developed of late. It is no longer just tenancy or hybrid options.
- Brands can run content on CPC now. This enables them to take a test and learn approach, decreasing the barrier to entry.
Advertisers and agencies think publishers are compensated fairly, publishers disagree
- To put the publisher response here into context, they are likely considering the wider scope of their work that leads up to a successful referral. For instance, creating content, uploading advertisements, and so much more that they do for partners day in and day out.
- We want publishers to feel that they are fairly compensated but we need support from them to get that further investment.
- We have a great relationship with our publishers, relying on several of them for data and insights we’ll relay to our advertisers. But we’re always looking for more detail from them. For example, vertical data or competitor brand activity audits.
- With ROAS at a really strong 10:1 in the channel publishers can feel extremely confident in selling it to further proving their value.
Transparency from all to encourage understanding emerged as a key theme in the report
- Transparency is always important and it’s something that we pride ourselves on as a network. We have found, on numerous occasions, that brands value it massively. It’s about partnerships, after all. Advertisers aren’t just signing off budgets, they’re placing a deal of trust in the publisher.
- It’s imperative that publishers share the data and insights on their traffic sources. Subnetworks in particular, play a significant role here. They account for such a large number of transactions within any affiliate network and, when used correctly, are extremely effective.
- At Webgains, we’ve been collaborating more closely with subnetworks to ensure we can report exactly where and how each advertiser was promoted by them. From this data, our team are better equipped to suggest best match partners for any specific trading period.
- This does not stop with subnetworks, however. The need for visibility on promotional materials applies to all.
Final word
Everyone at Webgains is excited by this comprehensive industry report. We greatly appreciate the efforts of The APMA in pulling it together. As we continue to unpack its findings over the coming days and weeks, we will be sharing data with our clients that proves that investment in affiliates is budget well spent.
Publishers should feel encouraged that their contributions are having a huge impact yet appreciate that the picture will look even better when they can be fully transparent with networks and retailers alike. Meanwhile, with this report, advertisers in multiple verticals may well have gained their golden ticket to increased exposure in the affiliate channel. Affiliate not only delivers on a purely performance-based model, but the latest numbers are surely just too good to be ignored, by any CFO or decision maker!
The APMA research report has been sent via email to any individual who submitted a response. If you are interested in accessing the full report, you can get hold of it on The APMA’s website here.