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Awin

Retail sector sees 8% increase in revenue across affiliate network

The retail landscape has seen an 8% increase in revenue year on year (YoY) throughout Q2 of 2022, according to new data from global affiliate marketing platform, Awin.

Despite challenging market conditions, sales were up 4% YoY between April and June, with over £1.2billion in revenue being tracked on the network across 40 different sub-sectors.

Browsing behaviour was an up by 45%, while average order value (AOV) hit £101.27, a £6.52 increase from H1 of 2021. Yet, this increase in spend is likely to be as a result of brands passing extra costs to customers rather than out of choice or to access a better product or service.

Best performing sectors YoY include erotic (+350%), childrenswear (+118%), pharmaceuticals (+37%), pet (+45%), jewellery (+33%) and DIY (+17%).

Retail and travel client partner at Awin, Joelle Hillman, commented: “Many of the sectors that saw growth over the last 24 months and were cited as ‘lockdown trends’, from getting prescriptions online during high street closures to taking on more DIY projects during lockdown.

However, the continued growth in these sectors is a clear indicator that purchase behaviour has moved online, and specifically into the channel, for good.

“We are also seeing the continuation of ‘the lipstick effect’, despite a rise in prices, and decline in disposable income the UK are still keen to treat themselves to life’s little luxuries, with health and beauty up 21% and jewellery up 33%.”

One ‘lockdown trend’ that hasn’t remained however is online alcohol purchases, which are down 39% YoY, as we’re able to enjoy bars and restaurants again, and more recently pub gardens. Computer sales are also down on last year (-22%) as well as office supplies (-23%) now many remote workers are likely to have their home offices fully equipped.

Clothing has also seen strong growth YoY, with menswear sales up by 33%, womenswear up 25%, and childrenswear up 118%.

Influencer marketing in the affiliate sector increases 9%

Influencer publishers drove 610,000 sales to advertisers in 2019 up to September; 5.5% more than 2018, while revenue made from influencer sales in that period totalled £29.7m – 9.2% up from 2018 and AOV of influencer marketing was £48.47, representing a 3.4% increase.

The data was compiled by the team at global affiliate network www.awin.com, who looked at Awin’s top 100 influencer publishers in the UK, combining subnetworks, talent agencies and individual influencers, for the first three quarters of 2019 and then compared results to the same period in 2018. 

2019 saw an increase across all metrics for influencer marketing, which confirmed industry-wide forecasts that predicted advertisers were going to be allocating more marketing budget to influencer marketing for the year. 

In terms of sales, influencer publishers drove a total of 610,000 sales to advertisers on the Awin network for the first nine months of 2019, representing a 5.5% increase on the previous year. This amounted to £29.7m in revenue to advertisers, which was a substantial increase of 9.2% on the year before.

The amount of commission paid out to influencer publishers saw a significant uplift of 18.9% from 2018, amounting to £3.78 million. The average order value in influencer marketing for 2019 was also up 3.4% on the previous year, totalling £48.47.

Retail & shopping continues to dominate the influencer sector, accounting for 99.2% of the top 100 advertisers, whilst there has been an increase for those in the telecoms sector, who made up 0.6%.

Fashion is the sector investing in influencer marketing the most, with eight of the top 10 advertisers operating in this industry, with the remaining two in the beauty sphere. The dominance of fashion & beauty retailers is maintained in the top 50, but there has been an increase of advertisers in the health supplements space entering into this list.

Commenting on the findings, Carina Toledo, Influencer Partnerships Manager at www.awin.com, said: “Influencer marketing has increased massively in popularity over the past few years, and has come to form a key part of marketing strategies, particularly in the fashion and beauty sectors. The practice is certainly set to continue increasing, and the rise in its use in the telecoms and health supp