You are on page 1of 48

2011

[EUROPEAN AFFILIATE MARKETING LANDSCAPE REPORT]

Created by Affiliates4u.com and in association with Webgains; The inaugural European Affiliate Landscape Survey includes input from 18 European countries.

Contents
Foreword ............................................................................................................................................... 3 Affiliates4u Survey Highlights ................................................................................................................ 4 European Demographic Data, Geographies and Affiliate Information .................................................. 5 Working with Advertisers / Merchants ............................................................................................... 14 Affiliate Networks ................................................................................................................................ 15 Communication with Advertisers / Agencies / Networks .................................................................... 16 Future activity within Performance Marketing ................................................................................... 17 Country Comparisons .......................................................................................................................... 19 Demographic Data ............................................................................................................................... 19 Affiliate Commissions .......................................................................................................................... 21 Country Expansion & Current Topics of Discussion ............................................................................. 36 The Future & Performance Marketing Channel Implementation ........................................................ 41

European Affiliate Marketing Landscape Report 2011


In Association with Webgains

All rights reserved. Existem Ltd grants you to store and print from this m aterial for your own personal and commercial use. No part of this publication m ay be reproduced without prior permission from the publisher. Copyright Existem Ltd 2011

Page 2

Foreword
The affiliate marketing industry has grown substantially over the past few years from its romantic beginning as students in garrets and has now assumed its rightful place as an important channel in advertisers online marketing strategies. As a result of the increased importance of our industry, it is imperative that we understand the key business drivers, both as an international industry and in individual local markets. The a4u Survey is the first of its kind. The driving force behind this survey was a need to understand key affiliate issues, geographic differences, promotional techniques and affiliate preferences in order for us to begin to paint a picture of our industry. Having insight into each market in isolation and comparing the results against the whole has led to some unexpected and exciting results. Weve always been aware that, in order to effectively market products and services internationally, the subtle idiosyncrasies of each local market and culture need to be catered for. This survey paints a picture of these local trends and helps us understand the metrics important to affiliates across Europe. Aside from the insight into local markets, the survey also provides us with valuable data relating to the health of our industry. It is encouraging to see from the mix of respondents, that our industry continues to attract new entrants optimistic about their futures. These new entrants, along with the continued dedication of established affiliates, ensure that our industry thrives. They add valuable content and promotional opportunities to the already substantial inventory pool and continue to spur on technological and promotional advancements at a rate far outpacing any other online channel. Further insights can be derived from the preferences stated by affiliates in terms of payment models and communication methods, allowing merchants, networks and other affiliates a base from which to model current and future activities. This initial survey also presents a snapshot of current affiliate marketing against which future research can be compared. Affiliate marketing evolves so rapidly that there are very few constants, making comparisons exceptionally important. We are now in a position to build a factbase over the next few years to document these changes. I would like to take this opportunity to thank all of the affiliates who took the time to complete the survey as it is their contributions which have led to this project being such a resounding success. I would also like to thank the team at a4u who have undertaken the painstaking task of compiling the survey and collating the data into this comprehensive report. It is dedication such as this which has catapulted our industry into the limelight and long may it continue.

European Affiliate Marketing Landscape Report 2011


In Association with Webgains

All rights reserved. Existem Ltd grants you to store and print from this m aterial for your own personal and commercial use. No part of this publication m ay be reproduced without prior permission from the publisher. Copyright Existem Ltd 2011

Page 3

Robert Glasgow, Managing Director, Webgains Ltd

Affiliates4u Survey Highlights


Spanning over 30 global countries, the European Affiliate Survey attracted more than 1,000 affiliates to enter the inaugural survey. We ran 3 simultaneously translated surveys to encourage wider input from different countries, with English, French and Spanish as the chosen languages. 26% of Affiliates who are expanding their activity cross-country are looking to expand into Germany, with 20% looking to target the economic crisis by expanding into the Republic of Ireland. The preferred payment model for Affiliates still remains CPA by a comfortable margin of 52%, and 20% of Affiliates earn between 1,000 and 5,000 per month, showing a considerable jump in sustainable Affiliate Marketing. The Retail and Travel Verticals remain the most competitive for affiliate activity, with 60% of Affiliates working within the retail vertical and 46% within the Travel vertical. Video linking is used the least by Affiliates when adding affiliate links to their web properties. Something that has recently gained momentum thanks to the interactive video networks that are launching, this still has low exposure throughout Europe. Astonishingly, nearly 40% of Affiliates are concerned about de-duplication policies. Within those concerned, over 35% believe that between 10-25% of revenue is lost due to the Advertisers de- duplication policies. 45% of Affiliates only read between 1-24% of their email communications sent to them by Advertisers / Agencies and Networks.

European Affiliate Marketing Landscape Report 2011


In Association with Webgains

All rights reserved. Existem Ltd grants you to store and print from this m aterial for your own personal and commercial use. No part of this publication m ay be reproduced without prior permission from the publisher. Copyright Existem Ltd 2011

Page 4

European Demographic Data, Geographies and Affiliate Information


Figure 1: Gender Figure 2: Age
100.00% 80.00% 60.00% 40.00% 20.00% 0.00% Male Female 16.09% 83.91% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00%
Under 18-24 25-34 35-54 55-64 65 on 18

Figure 3: When Did you Start Working in Affiliate Marketing?

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Figure 4: Your Affiliate Status?


20.26% 51.72%

I own a registered aliate company I work for an Aliate Copmany I am Self-Employed

27.37%

European Affiliate Marketing Landscape Report 2011


In Association with Webgains

All rights reserved. Existem Ltd grants you to store and print from this m aterial for your own personal and commercial use. No part of this publication m ay be reproduced without prior permission from the publisher. Copyright Existem Ltd 2011

Page 5

Figure 5: Including yourself, how many employees work within your Affiliate Business?
100.00% 80.00% 60.00% 40.00% 20.00% 0.00% 1-4 5-9 10-19 20-49 50-99 100-499 500-999 1000+

Figure 6: Have You Been Financially Funded in Any Way?

11.61%

Yes No 88.17%

Figure 7: Where is your Company Based?

European Affiliate Marketing Landscape Report 2011


In Association with Webgains

All rights reserved. Existem Ltd grants you to store and print from this m aterial for your own personal and commercial use. No part of this publication m ay be reproduced without prior permission from the publisher. Copyright Existem Ltd 2011

Page 6

Others India, Pakistan, Cyprus, Israel, Australia, Malaysia, Estonia, Guatemala, Jamaica, Uruguay, Czech Republic, Indonesia, Morocco, Cyprus, Estonia, Costa Rica, Tunisia, Brunei, Chile Figure 8: Which countries do you currently operate in (red) and which countries are you planning to expand to (blue) in 2011?
50.00% 45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00%

In Which Territories Do You / Your Company CURRENTLY operate in? Which Countries are you planning to expand into?

European Affiliate Marketing Landscape Report 2011


In Association with Webgains

All rights reserved. Existem Ltd grants you to store and print from this m aterial for your own personal and commercial use. No part of this publication m ay be reproduced without prior permission from the publisher. Copyright Existem Ltd 2011

Page 7

Figure 9: Which Verticals do you work in with your Affiliate activity?

22.60%

36.46%

Broadband & Internet Services 46.06% 24.52% Casino, Bingo & Gaming Finance Mobile 28.14% Online Dalng Retail Travel & Leisure Other 61.62% 29.42% 19.40%

Figure 10: How would you rate these discussions in order of importance within your main country?

Most Important: 1. Google (Updates / Impact) 2. Voucher Codes 3. Datafeed Importance 4. Data Privacy ( Cookie Legislation) 5. Mulit-Channel Attribution 6. Post-View Tracking 7. Cashback / Incentive 8. Growth in Mobile Affiliate Marketing 9. Retargeting 10. Brand Bidding European Affiliate Marketing Landscape Report 2011
In Association with Webgains

All rights reserved. Existem Ltd grants you to store and print from this m aterial for your own personal and commercial use. No part of this publication m ay be reproduced without prior permission from the publisher. Copyright Existem Ltd 2011

Page 8

Figure 11: Which Affiliate Models do you work with?

1.11% 3.06% 7.50% 11.53% 9.65% 7.15% 12.01%

Cashback / Incenlve Comparison Content / Portal Datafeed 21.04% E-mail Mobile / App Development

10.56% 4.17%

12.22%

Niche / Micro-Niche Paid Search Remarkelng Voucher Other

Others: Webinars, Social Media, Co-Reg, Offline. Figure 12: Which methods do you use the most when adding Affiliate Links to your web properties?

Most Used 1. Generic Text Links 2. Banners 3. Product Feeds / Data Feeds 4. 3rd Party Applications 5. Voucher Code Feeds 6. Wordpress Plugins 7. Videos

European Affiliate Marketing Landscape Report 2011


In Association with Webgains

All rights reserved. Existem Ltd grants you to store and print from this m aterial for your own personal and commercial use. No part of this publication m ay be reproduced without prior permission from the publisher. Copyright Existem Ltd 2011

Page 9

Figure 13: What is your preferred payment model?


60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% CPA (Cost Per CPC (Cost Per CPM (Cost Per Acquisilon) Click) Mille) Hybrid / Tenancy Other Revenue Share

Other: CPO, CPL, RECURRING PAYMENTS Figure 14: On average, how much commission do you earn per month in total across all your Affiliate activity?

3.79% 4.45% 2.67% 5.35% 9.35%

11.36% 19.38%

Up to 50E 50-500 500-1,000 1,000-5,000

10.47% 13.59% 19.60%

5,000-10.000 10,000-25,000 25,000-50,000 50,000-100,000 100,000-250,000 250,000+

European Affiliate Marketing Landscape Report 2011


In Association with Webgains

All rights reserved. Existem Ltd grants you to store and print from this m aterial for your own personal and commercial use. No part of this publication m ay be reproduced without prior permission from the publisher. Copyright Existem Ltd 2011

Page 10

Figure 15: What % of your overall company turnover can be affiliated to Performance Marketing?
30.00%

25.00%

20.00%

15.00%

10.00%

5.00%

0.00% 0% 1-9% 10-19% 20-29% 30-39% 40-49% 50-59% 60-69% 70-79% 80-89% 90-100%

Figure 16: How important to your earnings is contextual advertising? (i.e Adsense)

18.22%

12.15%

Very Important 16.92% Important Semi-Important Not Important 29.07% Don't Use Contextual Adverlsing

23.64%

European Affiliate Marketing Landscape Report 2011


In Association with Webgains

All rights reserved. Existem Ltd grants you to store and print from this m aterial for your own personal and commercial use. No part of this publication m ay be reproduced without prior permission from the publisher. Copyright Existem Ltd 2011

Page 11

Figure 17: How do you generate the majority of traffic to your website?

Other: Direct, Display, E-mail, Article Marketing Figure 18: Are you concerned about Advertiser / Merchant De-Duplication Policies?

35.21%

37.15%
Yes No Don't Know

27.65%

European Affiliate Marketing Landscape Report 2011


In Association with Webgains

All rights reserved. Existem Ltd grants you to store and print from this m aterial for your own personal and commercial use. No part of this publication m ay be reproduced without prior permission from the publisher. Copyright Existem Ltd 2011

Page 12

Figure 19: What % of your revenue do you believe is lost due to de-duplication?
40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% More than 50% 25-50% 10-25% 1-10% 0% Not Sure

Figure 20: Have You Used Pay Per Call? Figure 21: Are You Considering Using Pay Per Call?

9.94% 19.18% Yes No 90.06% 80.82% Yes No

European Affiliate Marketing Landscape Report 2011


In Association with Webgains

All rights reserved. Existem Ltd grants you to store and print from this m aterial for your own personal and commercial use. No part of this publication m ay be reproduced without prior permission from the publisher. Copyright Existem Ltd 2011

Page 13

Working with Advertisers / Merchants


Figure 21: Which 5 of these are most important to you when working with an Advertiser / Merchant? 1. 2. 3. 4. 5. Commission Level Commission Tier Levels Cookie Period Quality of Datafeeds Affiliate Incentives & Competitions

Figure 22: If you were to give an Advertiser / Merchant more exposure, which 5 attributes would be most important to consider in your decision? 1. 2. 3. 4. Conversion Rate Commission Tier Levels Cookie Period Quality of Datafeeds 5. Affiliate Incentives & Competitions How Can a Network Improve their relationship with Affiliates?

Improving response times Connecting Affiliates with suitable Merchants, and vice-versa. Fast, direct and personalised attention. Being a real intermediary between Merchants and Affiliates. More Statistics Regarding Affiliate Programmes Training Days for Affiliates, help me improve Automatically assign Advertisers to my Niches By being more Transparent. Work with us to understand what works for us and how we can grow that help us secure non CPA model deals. European Affiliate Marketing Landscape Report 2011
In Association with Webgains

All rights reserved. Existem Ltd grants you to store and print from this m aterial for your own personal and commercial use. No part of this publication m ay be reproduced without prior permission from the publisher. Copyright Existem Ltd 2011

Page 14

Affiliate Networks
Figure 23: Who are your preferred Affiliate Networks that you currently work with? (EU Wide Result)
2.86% 2.73% 2.61% 6.21% 6.46% 6.71% 12.67% 19.25% 24.22%

16.27%

TradeDoubler NetAlialon PublicIdees

Webgains Commission Junclon LinkShare

Zanox Alinet

Aliate Window Daisycon

Figure 24: Which 5 Features makes the above networks your preferred choices to work with? 1. 2. 3. 4. 5. Tracking Reliability Quality of Merchants / Advertisers Payment Reliability Payment Frequency Range of Advertisers

Others: Transparency, Reputation, Exclusivity of Programmes

European Affiliate Marketing Landscape Report 2011


In Association with Webgains

All rights reserved. Existem Ltd grants you to store and print from this m aterial for your own personal and commercial use. No part of this publication m ay be reproduced without prior permission from the publisher. Copyright Existem Ltd 2011

Page 15

Communication with Advertisers / Agencies / Networks


Figure 25: How many marketing emails from Agencies, Advertisers & Networks do you receive per day, and how many do you read?
80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 0 1-49 50-99 100-199 200+

Figure 26: What Percentage of these e-mails do you read?


50.00% 45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 0% 1-24% 25-49% 50-74% 75-99% 100%

Figure 27: What are your primary sources for keeping in touch within Affiliate Marketing? Email Communications, Affiliate Forums, Affiliate Blogs, Networking Events, Networking Blogs Others: Twitter, Instant Messenger, Phone Calls with Account Managers

European Affiliate Marketing Landscape Report 2011


In Association with Webgains

All rights reserved. Existem Ltd grants you to store and print from this m aterial for your own personal and commercial use. No part of this publication m ay be reproduced without prior permission from the publisher. Copyright Existem Ltd 2011

Page 16

Future activity within Performance Marketing


Figure 28: Which Performance Marketing related channels are you considering implementing within your Affiliate activity this year?

25.00% 20.00% 15.00% 10.00% 5.00% 0.00%

Figure 29: Will your commissions earned in 2011 be more or less than in 2010?

European Affiliate Marketing Landscape Report 2011


In Association with Webgains

All rights reserved. Existem Ltd grants you to store and print from this m aterial for your own personal and commercial use. No part of this publication m ay be reproduced without prior permission from the publisher. Copyright Existem Ltd 2011

Page 17

Figure 30: What do you expect to be the biggest threat to your earnings this year?
Mobile / Localon Based Applicalons, 3.45% VC / Angel / External Funding, 1.49% Post-View Tracking, Other, 3.68% 4.37% Behavioural Retargelng, Internalonal 7.59% Aliates Expanding into your Territory, 6.21% Culling' of Aliates on Programmes, Group Buying 12.30% Websites, 4.02%

Cookie Legislalon / Privacy, 21.03% Google Updates / Slaps, 27.24%

Exclusive Voucher Codes / Voucher Codes, 8.62%

Others: Recession / Economy, De Duplication, Facebook Figure 31: How positive are you regarding the future of Performance related activity within your business?
2.65% 0.71% 19.12% 35.75% Very Posilve Posilve 41.77% Neutral Negalve Very Negalve

European Affiliate Marketing Landscape Report 2011


In Association with Webgains

All rights reserved. Existem Ltd grants you to store and print from this m aterial for your own personal and commercial use. No part of this publication m ay be reproduced without prior permission from the publisher. Copyright Existem Ltd 2011

Page 18

Country Comparisons Demographic Data


100.00% 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% UK DE NL FR ESP DK SWE Male Female

65 on 55-64 35-54 25-34 18-24 Under 18

UK

DE

NL

FR

ESP

DK

SWE

European Affiliate Marketing Landscape Report 2011


In Association with Webgains

All rights reserved. Existem Ltd grants you to store and print from this m aterial for your own personal and commercial use. No part of this publication m ay be reproduced without prior permission from the publisher. Copyright Existem Ltd 2011

Page 19

UK

DE

NL

FR

ESP

DK

SWE I am Self-Employed

I own a registered aliate company

I work for an Aliate Copmany

Question: Including yourself, how many employees work within your Affiliate business?

1-4

5-9

10-19 UK DE

20-49 NL FR

50-99 ESP DK

100-499 SWE

500-999

1000+

European Affiliate Marketing Landscape Report 2011


In Association with Webgains

All rights reserved. Existem Ltd grants you to store and print from this m aterial for your own personal and commercial use. No part of this publication m ay be reproduced without prior permission from the publisher. Copyright Existem Ltd 2011

Page 20

Question: Have You Been Financially Funded in Any Way?

No Yes

UK

DE

NL

FR

ESP

DK

SWE

Affiliate Commissions
Question: On average, how much commission do you earn per month in total across all your Affiliate activity?

UK DE NL SWE ESP NL UK FR ESP DK SWE

European Affiliate Marketing Landscape Report 2011


In Association with Webgains

All rights reserved. Existem Ltd grants you to store and print from this m aterial for your own personal and commercial use. No part of this publication m ay be reproduced without prior permission from the publisher. Copyright Existem Ltd 2011

Page 21


25.00% 20.00% 15.00% 10.00% 5.00% 0.00% UK


18.00% 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00%

DE


30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% NL

European Affiliate Marketing Landscape Report 2011


In Association with Webgains

All rights reserved. Existem Ltd grants you to store and print from this m aterial for your own personal and commercial use. No part of this publication m ay be reproduced without prior permission from the publisher. Copyright Existem Ltd 2011

Page 22

20.00% 18.00% 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00%

FR


40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00%

ESP


25.00% 20.00% 15.00% 10.00% 5.00% 0.00% DK

European Affiliate Marketing Landscape Report 2011


In Association with Webgains

All rights reserved. Existem Ltd grants you to store and print from this m aterial for your own personal and commercial use. No part of this publication m ay be reproduced without prior permission from the publisher. Copyright Existem Ltd 2011

Page 23

35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00%

SWE

Question: What is your preferred payment model?

UK DE NL SWE DK ESP FR NL DE UK FR ESP DK SWE

European Affiliate Marketing Landscape Report 2011


In Association with Webgains

All rights reserved. Existem Ltd grants you to store and print from this m aterial for your own personal and commercial use. No part of this publication m ay be reproduced without prior permission from the publisher. Copyright Existem Ltd 2011

Page 24

UK

CPA (Cost Per Acquisilon) CPC (Cost Per Click) CPM (Cost Per Mille) Hybrid / Tenancy Other

DE
CPA (Cost Per Acquisilon) CPC (Cost Per Click) CPM (Cost Per Mille) Hybrid / Tenancy Other Revenue Share

NL
CPA (Cost Per Acquisilon) CPC (Cost Per Click) CPM (Cost Per Mille) Hybrid / Tenancy Other Revenue Share

FR
CPA (Cost Per Acquisilon) CPC (Cost Per Click) CPM (Cost Per Mille) Hybrid / Tenancy Other Revenue Share

European Affiliate Marketing Landscape Report 2011


In Association with Webgains

All rights reserved. Existem Ltd grants you to store and print from this m aterial for your own personal and commercial use. No part of this publication m ay be reproduced without prior permission from the publisher. Copyright Existem Ltd 2011

Page 25

ESP

CPA (Cost Per Acquisilon) CPC (Cost Per Click) CPM (Cost Per Mille) Hybrid / Tenancy Other Revenue Share

DK
CPA (Cost Per Acquisilon) CPC (Cost Per Click) CPM (Cost Per Mille) Hybrid / Tenancy Other Revenue Share

SWE
CPA (Cost Per Acquisilon) CPC (Cost Per Click) CPM (Cost Per Mille) Hybrid / Tenancy Other Revenue Share

- It is unsurprising that all countries when drilled down mark CPA as the preferred payment model, even in the Nordic countries where Paid Search is by far the biggest traffic generator. Whilst a popular payment model within the Casino and Gaming verticals, all country respondents show a strong preference for a Revenue Share model. French respondents showed the most openness to different payment models, with CPC and CPM following close behind.

European Affiliate Marketing Landscape Report 2011


In Association with Webgains

All rights reserved. Existem Ltd grants you to store and print from this m aterial for your own personal and commercial use. No part of this publication m ay be reproduced without prior permission from the publisher. Copyright Existem Ltd 2011

Page 26

Question: How do you generate the majority of traffic to your website?

UK DE
SWE DK ESP FR NL DE UK

NL FR ESP DK SWE

UK
Co-Registralon CPL (Cost Per Lead) Lead Generalon Paid Search Adverlsing SEO Social Media Other

DE

Co-Registralon CPL (Cost Per Lead) Lead Generalon Paid Search Adverlsing SEO Social Media Other

European Affiliate Marketing Landscape Report 2011


In Association with Webgains

All rights reserved. Existem Ltd grants you to store and print from this m aterial for your own personal and commercial use. No part of this publication m ay be reproduced without prior permission from the publisher. Copyright Existem Ltd 2011

Page 27

NL

Co-Registralon CPL (Cost Per Lead) Lead Generalon Paid Search Adverlsing SEO Social Media Other

FR
Co-Registralon CPL (Cost Per Lead) Lead Generalon Paid Search Adverlsing SEO Social Media Other Co-Registralon

ESP

CPL (Cost Per Lead) Lead Generalon Paid Search Adverlsing SEO Social Media Other

DK

Co-Registralon CPL (Cost Per Lead) Lead Generalon Paid Search Adverlsing SEO Social Media Other

SWE
Co-Registralon CPL (Cost Per Lead) Lead Generalon Paid Search Adverlsing SEO Social Media

European Affiliate Marketing Landscape Report 2011


In Association with Webgains

All rights reserved. Existem Ltd grants you to store and print from this m aterial for your own personal and commercial use. No part of this publication m ay be reproduced without prior permission from the publisher. Copyright Existem Ltd 2011

Page 28

Question: Which Verticals do you work in with your Affiliate activity?


100.00% 80.00% 60.00% 40.00% 20.00% 0.00%
Broadband & Internet Services Casino, Bingo & Gaming Finance Mobile Online Dalng Retail Travel & Leisure Other Broadband & Internet Services Casino, Bingo & Gaming Finance Mobile Online Dalng Retail Travel & Leisure Other Broadband & Internet Services Casino, Bingo & Gaming Finance Mobile Online Dalng Retail

UK

DE

80.00% 60.00% 40.00% 20.00% 0.00%

NL

80.00% 60.00% 40.00% 20.00% 0.00%


Broadband & Internet Services Casino, Bingo & Gaming Finance Mobile Online Dalng Retail

FR

80.00% 60.00% 40.00% 20.00% 0.00%


Broadband & Internet Services Casino, Bingo & Gaming Finance Mobile Online Dalng Retail

ESP

80.00% 60.00% 40.00% 20.00% 0.00%

European Affiliate Marketing Landscape Report 2011


In Association with Webgains

All rights reserved. Existem Ltd grants you to store and print from this m aterial for your own personal and commercial use. No part of this publication m ay be reproduced without prior permission from the publisher. Copyright Existem Ltd 2011

Page 29

DK

60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00%

Broadband & Internet Services Casino, Bingo & Gaming Finance Mobile Online Dalng Retail


Broadband & Internet Services Casino, Bingo & Gaming Finance Mobile Online Dalng Retail

SWE

80.00% 60.00% 40.00% 20.00% 0.00%

Retail and Travel continue their dominance in the vertical areas of Affiliate Marketing with over 40% of all Affiliates operating Retail & Travel related activities. Only in Denmark and Spain are these verticals beaten by Broadband & Internet Services, with more than 50% of Affiliates focussing on this vertical in Spain and just under 50% in Denmark. Online Dating remains the least utilised vertical, with all countries except for France and the Netherlands operating under 20% of affiliates.

Others Include: - - - - - - Mobile Marketing Automotive Real Estate Adult Entertainment B2B Food & Groceries

European Affiliate Marketing Landscape Report 2011


In Association with Webgains

All rights reserved. Existem Ltd grants you to store and print from this m aterial for your own personal and commercial use. No part of this publication m ay be reproduced without prior permission from the publisher. Copyright Existem Ltd 2011

Page 30

Question: How important to your earnings is contextual advertising? (i.e Adsense)


Very Important Important Semi-Important Not Important Don't Use Contextual Adverlsing

UK

DE

Very Important Important Semi-Important Not Important Don't Use Contextual Adverlsing

NL

Very Important Important Semi-Important Not Important Don't Use Contextual Adverlsing

FR

Very Important Important Semi-Important Not Important Don't Use Contextual Adverlsing

ESP

Very Important Important Semi-Important Not Important Don't Use Contextual Adverlsing

European Affiliate Marketing Landscape Report 2011


In Association with Webgains

All rights reserved. Existem Ltd grants you to store and print from this m aterial for your own personal and commercial use. No part of this publication m ay be reproduced without prior permission from the publisher. Copyright Existem Ltd 2011

Page 31

DK

Very Important Important Semi-Important Not Important Don't Use Contextual Adverlsing

SWE

Very Important Important Semi-Important Not Important Don't Use Contextual Adverlsing

Question: Are You Concerned about Advertiser / Merchant De-Duplication Policies?

60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Yes No Don't Know FR ESP DK SWE DE UK NL SWE DK ESP FR

UK

DE

NL

European Affiliate Marketing Landscape Report 2011


In Association with Webgains

All rights reserved. Existem Ltd grants you to store and print from this m aterial for your own personal and commercial use. No part of this publication m ay be reproduced without prior permission from the publisher. Copyright Existem Ltd 2011

Page 32

Are You Concerned about Advertiser De- Duplication?


50.00% 40.00% 30.00% 20.00% 10.00% 0.00%
Yes No Don't Know

If Yes, What % of your revenue do you believe is lost due to De-Duplication?

UK

More 25-50% 10-25% 1-10% Not Sure than 50%

DE

60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00%


Yes No Don't Know

More than 25-50% 10-25% 50%

1-10% Not Sure

NL

50.00% 40.00% 30.00% 20.00% 10.00% 0.00%


Yes No Don't Know

More 25-50% 10-25% than 50%

1-10% Not Sure

FR

60.00% 40.00% 20.00% 0.00%

Yes

No

Don't Know

More 25-50% 10-25% than 50%

1-10% Not Sure

European Affiliate Marketing Landscape Report 2011


In Association with Webgains

All rights reserved. Existem Ltd grants you to store and print from this m aterial for your own personal and commercial use. No part of this publication m ay be reproduced without prior permission from the publisher. Copyright Existem Ltd 2011

Page 33

ESP

50.00% 40.00% 30.00% 20.00% 10.00% 0.00%


Yes No Don't Know

More 25-50% 10-25% than 50%

1-10% Not Sure

DK

50.00% 40.00% 30.00% 20.00% 10.00% 0.00%


Yes No Don't Know

More 25-50% 10-25% than 50%

1-10% Not Sure

SWE

50.00% 40.00% 30.00% 20.00% 10.00% 0.00%


Yes No Don't Know

More 25-50% 10-25% than 50%

1-10% Not Sure

- Country data shows that more respondants either do not know enough about Advertiser De-Duplication policies or are more concerned about it, when comparing to those who arent concerned. Over 50% of respondents in France, 40% in the UK, 30% in Spain and the Netherlands and 20% in Germany, Denmark & Sweden are concerned about Advertiser de-duplication policies. Of those who are concerned, the general amount of lost revenue is thought to be up to 25%, with France and the Netherlands showing higher levels of 25-50%

European Affiliate Marketing Landscape Report 2011


In Association with Webgains

All rights reserved. Existem Ltd grants you to store and print from this m aterial for your own personal and commercial use. No part of this publication m ay be reproduced without prior permission from the publisher. Copyright Existem Ltd 2011

Page 34

Question: Have You Used Pay Per Call?


Yes No Yes No

Have you used Pay Per Call?

If No, are you considering using Pay Per Call?

UK

DE
Yes No Yes No

NL
Yes No

FR
Yes No Yes No

ESP
Yes No Yes No

DK
Yes No Yes No

SWE
Yes No Yes No

European Affiliate Marketing Landscape Report 2011


In Association with Webgains

All rights reserved. Existem Ltd grants you to store and print from this m aterial for your own personal and commercial use. No part of this publication m ay be reproduced without prior permission from the publisher. Copyright Existem Ltd 2011

Page 35

Country Expansion & Current Topics of Discussion


Question: Which Countries are you planning to expand into?

UK

DE

NL

European Affiliate Marketing Landscape Report 2011


In Association with Webgains

All rights reserved. Existem Ltd grants you to store and print from this m aterial for your own personal and commercial use. No part of this publication m ay be reproduced without prior permission from the publisher. Copyright Existem Ltd 2011

Page 36

FR

ESP

DK

European Affiliate Marketing Landscape Report 2011


In Association with Webgains

All rights reserved. Existem Ltd grants you to store and print from this m aterial for your own personal and commercial use. No part of this publication m ay be reproduced without prior permission from the publisher. Copyright Existem Ltd 2011

Page 37

SWE

- - - -

Respondents from the UK, Germany, France, Spain and Sweden are significantly looking to expand into the US market during 2011. France and UK respondents are the only countries to show strong results for expansion into Italy Results suggest the respondents of each market are looking to expand primarily into other mature markets, before a second wave of upcoming Affiliate countries. Close-border expansion is obvious amongst each Countrys respondents.

Question: Which methods do you use the most when adding Affiliate Links to your web properties?

MOST USED

Generic Text Generic Links Text Links Banners Product Feeds 3 Party Applications Wordpress Plugins Videos
rd

Generic Text Banners Links Product Feeds Voucher Feeds Banners 3 Party Applications
rd

Banners

Generic Text Links Product Feeds Wordpress Plugins Banners

Generic Text Links Banners Product Feeds 3 Party Applications Voucher Feeds
rd

Product Feeds Voucher Feeds Banners Wordpress Plugins


rd

Generic Text Generic Links Text Links Product Feeds 3 Party Applications Videos
rd

Voucher Feeds Product Feeds


rd

3 Party Voucher Applications Feeds Videos


rd

3 Party Wordpress Applications Plugins Videos Videos

Wordpress Plugins Voucher Feeds

3 Party Wordpress Applications Plugins Videos Videos


Voucher Feeds

Wordpress

LEAST USED

European Affiliate Marketing Landscape Report 2011


In Association with Webgains

All rights reserved. Existem Ltd grants you to store and print from this m aterial for your own personal and commercial use. No part of this publication m ay be reproduced without prior permission from the publisher. Copyright Existem Ltd 2011

Page 38

Question: Which 5 of these are most important to you when working with an Advertiser / Merchant?
35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% Commission Level Conversion Rate Transparency Datafeeds Cookie Period Adverlser Reponse to Support

Question: If you were to give an Advertiser / Merchant more exposure, which 5 attributes would be most important to consider in your decision?
35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00%

European Affiliate Marketing Landscape Report 2011


In Association with Webgains

All rights reserved. Existem Ltd grants you to store and print from this m aterial for your own personal and commercial use. No part of this publication m ay be reproduced without prior permission from the publisher. Copyright Existem Ltd 2011

Page 39

Question: How many marketing e-mails from Agencies, Advertisers and Networks do you receive per day?
90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 0 1-49 50-99 100-199 200+ UK DE NL FR ESP DK SWE

Question: What Percentage of these e-mails do you read?


70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 0% 1-24% 25-49% 50-74% 75-99% 100% UK DE NL FR ESP DK SWE

Over 20% of all our respondent countries only read up to 25% of their e-mails from Advertisers / Agencies / Networks per day. Over 40% of respondents from France, UK, Germany, Netherlands and Denmark only read up to 25% of e-mail communications per day.

European Affiliate Marketing Landscape Report 2011


In Association with Webgains

All rights reserved. Existem Ltd grants you to store and print from this m aterial for your own personal and commercial use. No part of this publication m ay be reproduced without prior permission from the publisher. Copyright Existem Ltd 2011

Page 40

The Future & Performance Marketing Channel Implementation


Question: Which Performance Marketing related channels are you considering implementing within your Affiliate activity this year?
50.00% 45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00%

UK

DE
45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00%

European Affiliate Marketing Landscape Report 2011


In Association with Webgains

All rights reserved. Existem Ltd grants you to store and print from this m aterial for your own personal and commercial use. No part of this publication m ay be reproduced without prior permission from the publisher. Copyright Existem Ltd 2011

Page 41

NL

60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00%

FR
40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00%

ESP
50.00% 45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00%

European Affiliate Marketing Landscape Report 2011


In Association with Webgains

All rights reserved. Existem Ltd grants you to store and print from this m aterial for your own personal and commercial use. No part of this publication m ay be reproduced without prior permission from the publisher. Copyright Existem Ltd 2011

Page 42

DK

60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00%

SWE
30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00%

- Social Media is by far and away the most important area of Affiliate implementation this year, with around 40% from every country looking to increase their Social activities. Mobile Versions of websites are just ahead of Mobile Applications in every country apart from the Netherlands, where it is reversed. Display remains a steady 20-25% on average per country, while Retargeting and Mobile Advertising are high on the implementation list for Germany. From the results of our respondents, France, Germany and the UK have the highest percentage of ambitious Affiliates looking to add Performance Channels to their Affiliate websites.

European Affiliate Marketing Landscape Report 2011


In Association with Webgains

All rights reserved. Existem Ltd grants you to store and print from this m aterial for your own personal and commercial use. No part of this publication m ay be reproduced without prior permission from the publisher. Copyright Existem Ltd 2011

Page 43

Question: Will your commissions earned in 2011 be more or less than in 2010?
UK DE NL FR ESP DK SWE

30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00%


SWE ESP NL UK

- From using the above results, we can suggest that the European Affiliate Landscape will increase at an average rate of 30% for 2011.

European Affiliate Marketing Landscape Report 2011


In Association with Webgains

All rights reserved. Existem Ltd grants you to store and print from this m aterial for your own personal and commercial use. No part of this publication m ay be reproduced without prior permission from the publisher. Copyright Existem Ltd 2011

Page 44

Question: What do you expect to be the biggest threat to your earnings this year?
UK 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% DE NL FR ESP DK SWE

- The results above enforce the main discussion topics of today in Affiliate Marketing. Google updates, most recently the Panda update, plus the launch of Googles +1 button, remains the constant threat to Affiliate earnings across all territories, with the majority housing over 40% of concerned Affiliates. A recent hot topic in the UK, Culling of Affiliates on Programmes was far higher than any other country, with nearly 40% of UK Affiliates concerned about this Advertiser tactic. Unsurprisingly, Cookie Legislation and ePrivacy Directives are the second most concerning areas for Affiliates, especially in Spain where over 60% of Affiliates deemed it the biggest threat to their earnings.

European Affiliate Marketing Landscape Report 2011


In Association with Webgains

All rights reserved. Existem Ltd grants you to store and print from this m aterial for your own personal and commercial use. No part of this publication m ay be reproduced without prior permission from the publisher. Copyright Existem Ltd 2011

Page 45

Behavioural Retargeting remains a low threat across the board.

Question: How positive are you regarding the future of Performance related activity within your business?

Very Posilve Posilve Neutral Negalve Very Negalve

UK

DE

NL

FR

ESP

DK

SWE

Why So Serious? Very Negative, UK In recent months, my turnover appears to have been propped up by gaming merchants, rather than the retail. With reduced commissions and culls and more competition on the retail side, ever y sale counts. Negative, UK - Earnings from affiliate networks arent improving. We are earning more working via independents or specialist networks. Negative, NL I made a fortune by starting one of the first coupon sites back in 1999, but these days there is simply too much competition. I used to have GREAT google rankings, but that is all over now too. Negative, DE Its not sustainable. A lot of us are relying on Google for the majority of our traffic. All it would take is for the Big G to flick a switch (the we want to be the only affiliate switch) and wed be goosed!

European Affiliate Marketing Landscape Report 2011


In Association with Webgains

All rights reserved. Existem Ltd grants you to store and print from this m aterial for your own personal and commercial use. No part of this publication m ay be reproduced without prior permission from the publisher. Copyright Existem Ltd 2011

Page 46

Neutral, FR Evolution of Affiliation (closure or programs restrictions) and competitions (sometimes unfair) has meant that my business model has had to change and frozen my PPC budget for this year. Neutral, UK Online business is volatile and the introduction of new legislation such as privacy law and online sales tax could kill off Affiliates overnight. Positive, FR The economic model of Affiliate is the most credible and coherent for the Advertisers. Positive, DE The market is still moving, to succeed requires good work and knowledge. Not every newbie can enter the market successfully. Positive, ES Its a young business in Spain and we have a big market to discover. Positive, UK There is always room to expand into new niches, the Internet is still a big place and hasnt reached the level of saturation that some people seem to think. Very Positive, UK Recession makes all forms of marketing accountable, performance led marketing shows greater, more accountable ROI, with Marketers and budgets being increasingly curbed and stretched to show ever greater returns. Affiliate will lead the way and account for an increasing slice of the marketing pie. Very Positive, DK With Affiliate Marketing, I am sure the future will be very positive because of the Merchants, Features, Feeds, Links and the Tracking. Every aspect is improving very frequently. Very Positive, NL CPM is not applicable for all Advertisers, CPC is not really goal-related, CPA is the only way to go and it will grow even more in the coming periods.

European Affiliate Marketing Landscape Report 2011


In Association with Webgains

All rights reserved. Existem Ltd grants you to store and print from this m aterial for your own personal and commercial use. No part of this publication m ay be reproduced without prior permission from the publisher. Copyright Existem Ltd 2011

Page 47

European Affiliate Marketing Landscape Report 2011


In Association with Webgains

All rights reserved. Existem Ltd grants you to store and print from this m aterial for your own personal and commercial use. No part of this publication m ay be reproduced without prior permission from the publisher. Copyright Existem Ltd 2011

Page 48

You might also like