Affiliate sales and budgets in decline

E-consultancy and R.O.EYE’s ‘Affiliate Marketing Survey Report 2008’ found the share of online marketing budgets committed to affiliate marketing fell from 18% in 2007, to 14% this year.

Sales resulting from affiliate marketing are also falling, down to 12% this year from 16% in 2007.

The drop in budgets may be partly due to the current economic environment, but E-consultancy’s Linus Gregoriadis believes improvements in companies’ own abilities to drive traffic to their sites is a contributing factor.

“The 2008 report has clearly sent out some key messages for the industry,” said Mark Kuhillow, Managing Director of R.O.EYE. “While more merchants than in 2007 view affiliate marketing as a very effective channel, almost 70% are spending less than two hours per week communicating with their affiliates and policing them. It is more important than ever before to forge strong relationships between merchants and their affiliates to protect volume and the channel’s efficiency.”

“This report highlights the changes the industry and exposes the end of ‘easy pickings’ for affiliates.”

Tags: affiliate marketing, marketing budget