23 Musings

45% growth in the last year is being reported for the affiliate marketing sector (according to Marketing Charts). The total value of online sales by affiliates was around £3 billion in 2007.

While that's some very strong growth year on year it's still a drop in the ocean compared to total online sales. I'd expect to see affiliates continue to grow at a rapid rate and other referral marketing channels such as paid search slow or even begin to drop in a year or two. As affiliates hone their skills, and retailers get more strategic they are going to become a far more cost effective way to get leads and sales for your website.

Top sectors for affiliate marketing in 2007? Financial services, Retail, Telecoms and Travel (travel attributes nearly 18% of online sales to affiliates).