Online Affiliate Marketing Spending To Hit $3 Billion

    July 1, 2008

In 2008 online marketers will spend $2.1 billion on affiliate marketing fees, with U.S. online affiliate marketing spending hitting $3.3 billion in 2012 according to a new report from JupiterResearch, "US Online Affiliate Marketing Forecast, 2007-2012."

The report found affiliate marketing remains popular because it is performance based, has a low risk and requires a small initial investment. Marketers tend to work with affiliates that attract the most traffic to their sites, which results in a handful of affiliates bringing the majority of traffic and sales.

"Strong affiliates that have quality content and responsible marketing practices succeed within the changing search environment and reap the benefits of a growing ad arena," said Patti Freeman Evans, Online Retail Analyst and lead author of the report for JupiterResearch.

Affiliate marketing is heavily tied to the search engine marketing industry, making Google a major factor in the overall growth of the industry. Google’s influence over SEM requires affiliates to be aware of Google’s Quality Score.

"To date, an alternate way to generate traffic from search has not materialized. However, the development of niche outlets such as blogs and social networking sites does provide balance to the consolidation of top affiliates," said David Schatsky, President of JupiterResearch.