As we head into 2025, affiliate marketing in the UK continues to thrive, with the sector reaching new heights in 2023 and leading onto 2024. According to the latest APMA (The Affiliate & Partner Marketing Association) 2024 State of the Nation Report. The affiliate marketing industry saw an impressive 17% growth, bringing the total value of the market to £1.67bn. This growth is outpacing overall digital marketing spend, proving that affiliate marketing is one of the most dynamic and effective channels for driving sales. Below are the key points from the State of the Nation Report about affiliate marketing and how well it’s performing.
Driving Results with Impressive ROI
One of the standout findings from the report is the incredible return on investment (ROI) that affiliate marketing delivers. On average, brands earn £17 for every £1 they invest, with the travel sector leading the way at a 23:1 ROI. With such high returns, it’s no surprise that over half of UK brands plan to increase their affiliate marketing budgets in 2025.
Diverse Marketing Methods Lead to Success
Affiliate marketing has evolved significantly over the years, and 2023 was no exception. Cashback and loyalty programs continue to be dominant, but there’s been a surge in content-driven marketing, with blogs, editorials, and influencer partnerships making a substantial impact. Influencer-driven affiliate marketing alone saw a 42% year-on-year growth, making it a crucial channel for marketers looking to tap into new audiences.
More Publishers Enter the Market
The number of active UK publishers in affiliate marketing grew significantly in 2023, with 67,000 publishers now participating in affiliate programs. This growing network of publishers is helping brands reach more consumers than ever before, with nearly one million affiliate sales being tracked every day. The report highlights that affiliate marketing is responsible for tracking 10% of all retail sales in the UK.
Challenges Ahead: Google and Tracking
Despite the successes, the report also highlights key challenges facing the affiliate industry. Google’s ever-changing search algorithms and issues around tracking—especially in relation to consent management tools—are major concerns for publishers. Many reported that these factors are impacting their revenues, as tracking failures can lead to missed conversions and lower commissions.
The industry will need to find innovative ways to tackle these challenges, particularly as tracking and data privacy become more complex.
The Future is Bright for Affiliate Marketing
Looking ahead, the future of affiliate marketing in the UK appears bright. With brands planning to invest more in affiliate programs and new publishers entering the space, the industry is set to grow even further in 2025. The continued diversification of affiliate marketing methods, coupled with its impressive ROI, will ensure that it remains a key channel for brands looking to drive sales in a competitive digital landscape.
As the APMA report shows, affiliate marketing is not only a powerful tool for brands. It’s an essential part of the modern marketing mix. For more information on this story, or for support with your Affiliate Marketing, get in touch with our Awin preferred partners Affiliate team. Send us an email to team@modo25.com
