Affiliate marketing to reach 20% of sales

Affiliate marketing is expected to account for one fifth of overall sales in some key areas of the online travel sector this year.

The news of such a considerable share comes during a recent upsurge in activity across the pay-per-performance business, with some independent reports suggesting a high of £1 billion worth of sales across all sectors on the Internet in 2005 will see a significant increase again this year.

Affiliate specialist Traffic Junction has predicted a positive future for the often hidden area of the online marketing world, despite frequent criticism from advertisers about reliability and the quality and integrity of sites where marketing is placed.

Managing director Michael Edwards said; “With a new appetite for tracking return on investment, infused by search engine marketing, merchants have never been as focused on measuring the impact of their marketing efforts on the bottom line.

“The pay-for-performance model fits in perfectly with this paradigm shift in the way companies look at marketing.”

The world of affiliate marketing was created in 1996 by CDNow, but saw a huge explosion across the Internet after book retailer Amazon launched its now famous Amazon Associates programme.

TUI, and Expedia are three of the UK’s leading users of affiliate marketing.

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