Affiliate and partner marketing are often referred to as digital’s best-kept secret. It drives a remarkable 10% of all UK e-commerce sales, offering brands a pay-for-performance model that maximizes returns. In an age where advertisers are vying for efficiency and measurable outcomes, what’s not to like about a channel that delivers this kind of value? Yet, despite its effectiveness, the affiliate channel is sometimes overshadowed by flashier marketing solutions. The APMA set out to do just that, and with the release of their report: State of the Nation 2024: Affiliate and Partner Marketing, let’s explore why affiliate marketing deserves its rightful place at the forefront of any advertising strategy.
A Hub for Innovation and Growth
Affiliate marketing has always been the testing ground for cutting-edge technology and new business models. Whether it’s start-ups launching the next big innovation or established brands refining their strategies, this channel is the go-to space for those who want to test, learn, and optimize. Affiliate partners can help develop solutions faster than traditional tech teams, offering agility in the face of fast-paced digital trends. Additionally, partnerships with major e-commerce publisher partners are readily accessible through affiliate programs, giving brands unmatched exposure.
The Affiliate Industry in 2024: A Deep Dive
The report offers a comprehensive look into the affiliate and partner marketing industry. According to the retail data, affiliate marketing contributes a staggering £21 billion in e-commerce sales for UK retailers. In 2023, UK brands invested £1.67 billion in affiliate campaigns, representing a 17% year-over-year growth that far outpaced broader digital marketing budget increases. Post-pandemic, sectors like travel have seen dramatic rebounds, with affiliate-driven spend surging by 160% since 2021. With returns averaging £15 for every £1 spent, the affiliate model consistently proves its worth.
Affiliate Marketing’s Expanding Reach
The industry’s growth shows no signs of slowing. Affiliate marketing now drives nearly 1 million sales daily for UK brands, and more than £40,000 is tracked every minute by affiliate businesses. Influencer marketing has seen the most significant year-over-year growth, with a 42% surge in spend from 2022 to 2023. Content sites and comparison shopping services (CSS) have also thrived, seeing 34% and 39% growth, respectively. Interestingly, UK brands now outspend their US counterparts on affiliate marketing by 15%, showing the market’s increasing importance in the UK.
A Bright Future for Affiliate Marketing
As more than 50% of UK brands plan to increase their affiliate budgets in 2025, the industry continues to expand, with 67,000 active UK publisher partners and over 12,000 affiliate programs. SMEs are contributing significantly to this growth, driving new opportunities and innovations in the channel. However, publisher partners are calling for greater industry collaboration on challenges like Google’s impact on tracking and commission structures. With brands and publishers working together, affiliate and partner marketing is poised to remain a critical driver of e-commerce success well into the future.
Want to learn more about the state of affiliate in the UK? Download the full report right here.