Affiliate demand expected to grow

14:55 27th November 2008

The economic downturn is expected to increase the demand for affiliate marketing, new research has shown

According to a survey by payments company EntroPay, nearly half (46 per cent) of affiliate marketers believe that demand will grow in the current climate.

However, payment remains a concern for affiliate marketers, with only 23 per cent of affiliates happy with the way they are paid.

Merchants can be charged as much as £25 for some transactions, although two-thirds are unaware of the charges.

Alex Misfud, chief executive officer at EntroPay, said: "Current payment methods are creating a barrier to affiliate marketing growth, with a divide in the way that affiliates and merchants view payment processes.

"Of all affiliates surveyed, the second biggest challenge to the industry is the speed of making payments, following decreasing marketing budgets."

Vouchers and discounted affiliate marketing is expected to drive growth in the sector in 2009.

The Internet Advertising Bureau launched an affiliate marketing code of best practice earlier this month, designed to combat misuse.