The Affiliate Performance Marketing Association (APMA) lead by Kevin Edwards, today delivered its highly anticipated State of the Nation address this afternoon in London showcasing the results of its recent industry survey. The State of the Nation address was attended by a number of key players in the affiliate industry including our founder Lee-Ann Johnstone, provided an insightful afternoon of research, networking and collaboration.
What did the survey reveal?
With the rapid evolution of digital marketing, affiliate programs have become a vital driver of brand growth and revenue streams. The APMA’s data-driven insights are intended to help industry leaders and professionals stay ahead of the curve, understand challenges, and seize new opportunities in this ever-expanding field.
A snapshot of the APMA Insights shared today, included:
Are Advertiser Affiliate Budgets Increasing? – The answer is a resounding yes. Spend on affiliate programs increased by 17% from 2022 – 2023 measurement figures supplied by the top 10 networks who participated in the survey result data.
This shows the affiliate channel surpassing last year’s growth rate of 15% and reflected that the UK market, in particular, is seeing higher per capita spend on Performance Marketing, outpacing US markets by a significant margin.
Outperforming the Rest of the Market – The UK affiliate market is outperforming the broader digital marketing sector by an impressive 50%. This is a British industry success story, showcasing the power and potential of the Affiliate Industry as a growing segment of the workplace economy despite it often being misunderstood or under represented in the digital economy. This is was also a reflection of how our industry is growing as a sector and raised the need for more resources and talent to be encouraged into the marketplace but also highlighted the need for more intensive training.
We saw the industry hit a revenue milestone of £20 Billion – Affiliate marketing hit a major milestone this year, generating £20 billion in revenue for the first time. Affiliates now account for an estimated 10% of all e-commerce transactions, proving their crucial role in driving online sales.
The Travel industry’s come back – Since 2021, the travel sector has rebounded strongly, with affiliate-driven sales increasing by 160%.
Affiliate Sales Surge – Overall, affiliate-driven revenue is tracking at a 14% year-on-year increase, with £1 in every £10 spent online attributable to affiliate marketing. Sales driven by affiliates are increasing faster than ever, with 1 million affiliate sales being tracked in a single day from the data segment reviewed. This staggering figure highlights the sheer scale and power of the affiliate channel and it’s growth year on year.
Who are the Top 3 Growing Affiliate Types (2022-2023) – whilst the top affiliates driving sales remained constant showing a table with Cashback & loyalty sites sitting at 25% and Content & Editorial affiliates representing 23% and voucher code affiliates with 13% at the top of the scale, reflecting shifting consumer behaviour and preferences. Subnetworks were mid way at 9% and social influencers growing year on year to represent 4% of the total figures displayed in the table on screen – however it is noted that this may be under represented as influencer as a whole could not be measured across social platforms and only an indication from the participating network data submitted.
How Are Publishers Driving Traffic? – This was an interesting topic of the data survey as it showed that affiliates are utilising an average of 4.3 channels to drive traffic and new customer acquisitions, highlighting the complexity of affiliate program segmentation strategies. This multi-channel approach reinforces the importance of diversifying affiliate programs and ensuring that spend is directed where it can yield the highest returns.
The top 3 Affiliate Classifications Where Brands Are Spending their budgets mapped out as follows:
- CSS publishers +39%
- Influencers & Content Creators: +42%
- Content affiliates: +34%
These areas represent the fastest-growing affiliate classifications based on network allocations. Interestingly, price comparison sites have seen a dip, possibly explaining the rise in CSS (Comparison Shopping Services).
Active Advertiser Partnerships Surge, Kevin mentioned the correlation to numbers contained in the last state of the nation address in the UK back in 2014 estimated that there were roughly 4,000 advertisers and 12,000 publishers. In 2023, these numbers had skyrocketed to an estimated 12,000 advertisers and 67,000 publishers, illustrating the explosive growth of the affiliate ecosystem in the UK alone over this period.The rise of the gig economy and the increasing influence of social channels have empowered content creators and influencers to enter the affiliate space and drive e-commerce sales.
Brands’ Spending Plans for 2025 According to survey data, 57% of brands plan to increase their affiliate marketing budgets in 2025 with 40% planning to maintain their current levels, and only 3% anticipate reducing their spend. This reflects a broad optimism about the continued growth of the affiliate channel, despite some brands already being heavily invested in it.
Looking to the future – we’re growing as an industry and showing no signs of slowing!
Where does that leave us – as we look ahead to 2025?
As the APMA’s State of the Nation address wraps up, the message is clear: affiliate marketing is on an upward trajectory and shows no signs of slowing down. With increasing budgets, evolving technology, and more sophisticated tracking tools, affiliates are becoming a cornerstone of digital marketing strategies. As revenue continues to grow, and more brands tap into the power of affiliate partnerships, the future of this dynamic industry looks brighter than ever.
To download the full State of the Nation Affiliate Report please visit theAPMA.org to access it and consider their membership for your business to gain access to insights just like this that can help you grow your affiliate program strategy too!
