10 UK Affiliate Marketing Facts To Win Over Your Co-Workers and Shareholders
Affiliate marketing has become a popular marketing strategy in recent years, offering businesses a cost-effective way to increase brand awareness, generate leads, and drive sales. In the UK, the affiliate marketing industry is thriving, with estimates suggesting that it is worth over £8 billion annually.
As the industry continues to grow, it's important for businesses to stay up-to-date with the latest trends and best practices to get the most out of their affiliate marketing programs.
In this article, we'll take a closer look at 10 facts about affiliate marketing in the UK, from the size of the industry to the most popular affiliate marketing networks and the growing importance of influencer marketing. We'll look at:
- What is the total size of the affiliate marketing industry in the UK?
- What percentage of brands have an affiliate marketing program?
- How long does it take to make £10,000.00 as an affiliate?
- How much does an affiliate marketer make?
- Can affiliate marketers work from home?
- What makes more affiliate sales: Discount Codes, Links or QR Codes?
- What traffic drives the most affiliate sales?
- Can you still make money as an affiliate marketer?
- What affiliate programs pay the most commission?
- Is affiliate marketing regulated?
Whether you're new to affiliate marketing or looking to optimise your existing campaigns, these facts will provide valuable insights into the UK affiliate marketing landscape and swing your co-workers and shareholders to finally get started with an affiliate marketing program.
1. Affiliate marketing in the UK is estimated to be worth over £8 billion annually.
This figure is expected to grow as more businesses shift their marketing budgets towards performance-based marketing. According to a study conducted by the IAB UK, over 62% of advertisers plan to increase their affiliate marketing spend in the next year. The below table gives an insight into what the largest sectors are in the affiliate industry:
| Sector | Percentage of Total Affiliate Marketing Sales |
|---|---|
| Fashion | 18% |
| Technology | 14% |
| Home and Garden | 11% |
| Beauty | 9% |
| Travel | 8% |
| Sports and Fitness | 6% |
| Finance | 6% |
| Entertainment | 5% |
| Food and Drink | 4% |
| Business | 3% |
| Education | 2% |
| Health | 2% |
| Art and Crafts | 1% |
| Charity | 1% |
| Children | 1% |
| DIY | 1% |
| Gambling | 1% |
| Insurance | 1% |
| Music | 1% |
| Pets | 1% |
| Photography | 1% |
| Property | 1% |
| Shopping | 1% |
| Toys and Games | 1% |
| Other | 4% |
Avelon Team
2. Conversion rates for affiliate marketing are much higher than other forms of traditional marketing
With conversion rates dwindling for paid social marketing, paid search and even Google Shopping, we're seeing huge rises in conversion rates as brands move away from these traditional forms. The above graph shows the average conversion rate across the cycling industry, but shows a much bigger picture.
The average conversion rate across paid search media sits at just 1.2%, Google Shopping at a measly 0.7% and social media marketing at 0.2%. Comparing this to the lowest conversion rate in affiliate marketing, which happens during March and sits at 2%, and affiliate marketing seems all the more promising!
The average conversion rate across affiliate marketing from years 2022 - 2023 were 11.35%.
Yes, we know the cycling industry isn't the fashion industry, but it is for sure the most interesting graph to look at, as cycling in hugely seasonal.
3. Most affiliate marketers spend just 1-5 hours working on their 'side hustle' to make £10,000.00 per year
As unbelievable as it sounds, it's true. 35% of affiliates spend just 1-5 hours per week to earn £10,000.00 or more per year, whilst 27.5% spend 6-10 hours and 25% spend 11-15 hours. Pretty easy, when you think about it.
4. 20% of affiliate marketers make £10,000.00 - £20,000.00, whilst only 1% makes over £100,000.00
Affiliate marketing can be tricky, but once you've got the hang on it, your earning potential is unlimited. Did you know 40% of all affiliates in the UK make under £5000.00 per year (in the first year)?
This number grows dramatically as time and experience move on, and the average amount of hours and affiliate spends to earn £10,000.00 per year is 1-5 hours after the first year?
Avelon Team5. Can affiliate marketers work from home?
Over 60% of UK affiliate marketers work from home or remotely. This is because affiliate marketing is a flexible industry that allows people to work from anywhere in the world as long as they have a computer and internet connection.
6. Discount code sites have fallen by the waist side as consumers look to social affiliates
Everyone loves a deal, but did you know discount code / coupon code websites such as VoucherCodes and MyVoucherCodes only take up 22.5% of total market share for affiliates?
Link clicks at full RRP (trackable links) have now become the norm with affiliates / social affiliates, as consumers are looking for more in-depth reviews and want to rewards affiliates for their efforts.
QR code scans are even on the rise, as affiliates look to broaden their marketing efforts from social and website to event and flyers. Avelon has seen a 200% increase in QR code scans in the past 12-months, and they now take up 15% of total market share.
Read What Traffic Source Drives The Most Affiliate Sales? below:
Avelon Team7. Mobile devices are driving a significant portion of UK affiliate marketing revenue, with over 50% of affiliate clicks and sales coming from mobile devices.
Mobile devices are driving a significant portion of UK affiliate marketing revenue, with over 50% of affiliate clicks and sales coming from mobile devices. This is because consumers are increasingly using their smartphones and tablets to browse and shop online, making it essential for businesses to optimise their websites and marketing campaigns for mobile.
Avelon Team8. How much money do brands make from affiliate marketing?
Affiliate marketing has become an incredible source of low-risk revenue for brands in the past 10-years, and as more industries mature their affiliate strategies, the more money they're making over time.
Avelon analysed over 300,000 affiliate sales and 9.2 million non-affiliate sales to see what split brands are currently upholding, with some very interesting results. Our top take aways?
- Skincare relies heavily on affiliate marketing, making up 35% of total revenue in year one and 22.5% in year three
- Clothing and fashion grew from 17% to 27.5% from year's one to three for total affiliate marketing revenue
- Cycling brands total revenue from affiliate marketing grew from 3% to 19% in three years, as brands invest heavily and move away from traditional paid media
Avelon Team9. The lowest affiliate marketing commission is automotive (2%) and the highest is online education (20%)
Every affiliate marketing program offers wildly different commissions, bonuses and click rates, but on average, automotive offered the lowest commission and online education offered the highest. This is weighed by some online education courses offering 70% commission for the initial purchase, but low commissions in the automotive industry are the norm due to high labour costs.
The below table lists the average highest commissions across the affiliate sector, alongside annual earnings:
| Segment | Average Commission Rate | Average Earnings per Sale | Average Sales per Day | Annual Earnings* |
|---|---|---|---|---|
| Education | 20% | £100.00 | 1 | £43,800 |
| Business | 15% | £75.00 | 1 | £32,850 |
| Finance | 12% | £55.00 | 1 | £23,958 |
| Art & Photography | 10% | £25.00 | 2 | £18,250 |
| Gifts & Occasions | 9% | £18.00 | 3 | £19,710 |
| Food & Drink | 8% | £11.20 | 5 | £20,536 |
| Electronics | 5% | £32.50 | 1 | £11,862 |
| Beauty & Health | 7% | £12.60 | 3 | £13,731 |
| Travel | 4% | £30.00 | 2 | £21,900 |
| Fashion | 7% | £6.30 | 5 | £11,547 |
The below table lists the average lowest commissions across the affiliate sector, alongside annual earnings:
| Segment | Average Commission Rate | Average Earnings per Sale | Average Sales per Day | Annual Earnings* |
|---|---|---|---|---|
| Automotive | 2% | £10.00 | 2 | £3,650 |
| Real Estate | 2.5% | £75.00 | 1 | £9,125 |
| Home & Garden | 3% | £10.50 | 3 | £3,832 |
| Outdoor & Sports | 3% | £12.00 | 3 | £4,380 |
| Computers | 3.5% | £27.50 | 1 | £10,037 |
| Entertainment | 4% | £4.00 | 5 | £5,840 |
| Pets | 4% | £8.00 | 3 | £2,920 |
| Jewelry | 4.5% | £13.50 | 2 | £4,927 |
| Toys & Games | 5% | £5.00 | 5 | £9,125 |
| Books & Media | 5% | £2.50 | 10 | £4,562 |
A note on the above table: this is an average across all industries, but does not average Avelon's commissions, as our platform is a complete anomaly. The average commission across Avelon is 19%, and we work in the outdoor & sports industry, primarily.
In the article How much money can an affiliate make per year?, we list the highest and lowest commissions available across every industry. Check it our here:
Avelon Team10. The UK affiliate marketing industry is regulated by the Advertising Standards Authority (ASA) and the Committee of Advertising Practice (CAP)
The UK affiliate marketing industry is regulated by the Advertising Standards Authority (ASA) and the Committee of Advertising Practice (CAP) to ensure that advertising is legal, honest, and truthful.
This means that businesses must ensure that their advertising complies with the rules and regulations set out by these bodies to avoid penalties and damage to their reputation.
Avelon Team