The APMA’s recently published ‘State of the Nation’ report revealed some extremely promising growth statistics as well as some important development areas for the affiliate industry in the United Kingdom. For example, we learned that £21bn was tracked in online sales in 2023 by affiliate links, and that UK brands are making £17 for every £1 spent on their affiliate channels. Beneath these jaw-dropping headline numbers are plenty more showing that our channel remains in rude health and is significantly outpacing UK inflation.
The channel is generally more mature in the UK versus other markets, but the UK’s channel growth is likely to be reflected elsewhere. That’s certainly the case looking at performance across the numerous Webgains networks, from Spain to Germany and beyond.
We know then, that there is plenty of money to be made by both advertisers and publishers investing in the channel. Whatever strategies that were being employed in 2023 to achieve these numbers may well need to evolve to maintain growth again in 2025. Thankfully the team at Webgains encompasses not only outstanding affiliate experience, but also unrivalled knowledge of retail habits and customs across multiple markets. This forms the strategic intelligence we use to provide over 1,800 brands with affiliate-driven growth year after year.
We asked our international team representing several markets for their top insight or trend prediction for next year. The information below is just a taster of what a Webgains client benefits from day in day out working with our talented team.
Let’s see what they had to say…
Brands will turn to affiliate partners to achieve a wider mix of business goals than ever before
“The affiliate channel continues to demonstrate immense potential as a complementary force to all paid media channels while offering direct engagement opportunities for both new and existing customers. Thanks to its performance-based, risk-free model, marketers are poised to increasingly leverage this channel to achieve specific business objectives through bespoke, multi-publisher campaigns. Whether the goal is to increase average order value (AOV), attract new customers, or even boost in-store footfall, affiliate marketing offers tailored solutions to meet these needs.
The affiliate channel continues to demonstrate immense potential as a complementary force to all paid media channels.
For example, here’s an outline of a multi-publisher strategy that has proven key to the affiliate channel performance for a number of Webgains clients: Online newspapers and magazines (content) can reach highly relevant audiences; Comparison platforms can boost Google Shopping by taking carousel market share away from competitors; shoppers can be engaged by display and retargeting solutions; and onsite traffic conversion can be optimised by technology publishers.”
Social media platforms will expand their e-commerce features
“I’d be very surprised if we don’t see the leading social media platforms like Instagram and TikTok enhance their e-commerce features in the new year. According to Shopify’s report, TikTok is expected to have 35.8 million commerce users in the US by the end of the year. That’s a big number but is still behind Instagram’s current 45.3 million social shoppers.
New functionality from these platforms will boost affiliate marketing activity through in-app purchases and user-generated content. In 2025, AI and video integration will make affiliate marketing more interactive, allowing brands and affiliates to produce more creative, personalised campaigns that drive higher engagement and conversions.”
Increasing path to purchase complexity requires more top & mid funnel activity
“60% of consumers are taking at least six actions prior to each online purchase of a new product or from a new brand. This tells me that brands will be more focused on both their top and mid-funnel activity to ensure that a customer transacts. Within the affiliate channel this will mean additional commerce content to be booked in and regular product feed optimisations for CSS and comparison affiliates.”
Low or no setup fee publishers will be more attractive to advertisers
“The fact that affiliate marketing is performance based and therefore low risk, makes it an ideal growth medium for advertisers in a challenging economic environment. Rather than decreasing their investment in the affiliate channel, retailers will likely spend just as much if not more next year. The difference will be how they spend.
Brands are going to favour those partners who require low or zero setup fees. Alongside this, there will be a more intense focus on advertisers finding the right partners who can deliver sales and unlock new and relevant audiences. Luxury shopping and high-ticket publishers are not going to go away but they might see a drop as a result of this trend.
One such publisher type that will prosper and perform well in 2025 is price comparison platforms. These affiliates are now mainly CPA having previously been operated on a CPC basis and deliver strong ROI – measured at 12:1 by Webgains in our network data in November 2024.”
The fact that affiliate marketing is performance based and therefore low risk, makes it an ideal growth medium for advertisers in a challenging economic environment.
Technology partnerships will flourish
“I believe that the development of tech partnerships is an essential added value to the publisher mix of any affiliate program. For example, levers such as display, or email retargeting – that come from tech partners – are extremely effective for advertisers looking to avoid audience loss. Data from our network shows that these tactics can increase revenues by an average of over 30%, and up to 1000% in certain verticals.
Data from our network shows that these tactics can increase revenues by an average of over 30%, and up to 1000% in certain verticals.
However, the number of tech publishers working with brands has always been lower than it should be due to the need for advertisers to add code to their website and sometimes a lack of appropriate knowledge about the effectiveness of these levers – but all our teams are here to support our partners and make a difference!”
There will be a spike in investment by brands in content publishers and in influencers
“According to The APMA’s recent ‘State of the Nation 2024’ report as many as 57% of advertisers plan to spend more in the affiliate channel in 2025. Given that content publishers and influencers received 23% increased investment in 2023, it stands to reason that much of this budget is going to flow their way. Advertisers are really excited about what these partners can help them achieve in terms of gaining long term customers, creating relevant but evergreen content, and sharing their brand message with highly relevant audiences.”
According to The APMA’s recent ‘State of the Nation 2024’ report as many as 57% of advertisers plan to spend more in the affiliate channel in 2025.
US Publishers Continue Their UK Expansion in 2025
“Data from our international affiliate network shows US publishers increasingly turning to the UK as a key market for growth. With a well-developed e-commerce sector, shared language, culture and customs, and strong demand for American brands, the UK is a logical land of opportunity.”
That said, expanding into the UK market isn’t without its challenges. Shipping costs and delivery times can be sticking points for UK consumers, so it’s crucial for US publishers to partner with retailers that provide local fulfillment or affordable shipping options. Compliance with UK advertising standards and GDPR regulations is another important consideration, as maintaining trust and transparency is key to building a loyal customer base.
Despite these hurdles, the outlook is bright. US publishers are leveraging strategies like localised content, collaborations with UK influencers, and mobile-friendly campaigns to make the most of this growing market.”
Brands will take loyalty even more seriously through cashback strategies
“Over the years, we’ve seen the affiliate channel become a tool used by brands, not just for attracting new customers, but for retaining existing business too. More users are valuing long-term benefits from their recurring purchases. Amongst a huge range of publisher types driving the market, it’s cashback and loyalty partners making the biggest gains in this case.
Delivering tangible value with each transaction, cashback and loyalty affiliates are similarly effective in getting new customers as they are in retention. By partnering with affiliates that promote cashback, brands align their interests with those of their consumers, offering incentives that motivate users to choose their brand repeatedly.”
Affiliates will provide more opportunities for brands to use video
“Video content has already proven its power across social media platforms. Brands are paying attention, embracing this trend is a necessity within a growing affiliate marketing program.
Video has the ability to increase conversion and engagement rates, capture the attention of consumers and allow brands to develop stronger emotional connections with their audience. Affiliates will provide more and more opportunities for brands to use video within their affiliate marketing strategies and it should be embraced. This can include live streaming, product reviews, and short form videos for social media. The shift will move from blog articles to real time video content to engage with audiences.”
More advertisers will explore full-price affiliate strategies
“Discounting and high conversion affiliate sales such as those driven by cashback partners will still remain vital to the scale and success of the affiliate channel. However, I am seeing more and more advertisers utilising affiliate to drive full-price sales too. This trend is happening for two main reasons: Firstly, so brands can maximise their profit margins as their own costs spiral, and secondly to protect and enhance their brand image in the marketplace. Every affiliate type has proven worth (especially cashback!) and can be a difference-maker but not every affiliate or strategy is right for every brand.
Every affiliate type has proven worth (especially cashback!) and can be a difference-maker but not every affiliate or strategy is right for every brand.
There are, of course, multiple ways that we’re advising our clients to achieve sales without discounts applied. For example, Buy Now Pay Later partners like Klarna enable shoppers to purchase more expensive items through payment deferrals; conversion-focused tactics such as chatbots and retargeting ads can be effective via technology and paid media publishers respectively; and finally, we have those affiliates using various content forms to effectively highlight product benefits rather than pricing through the likes of listicles and reviews, or by reaching extremely targeted niche audiences.”