The document summarizes affiliate marketing trends in the UK market in February 2010. It discusses that the UK affiliate market was worth £3.82 billion in 2008 and projected to cross £4 billion in 2009. It then outlines how affiliate marketing works by having third parties advertise products and services in return for commission. Finally, it discusses the client perspective on why an affiliate marketing strategy is beneficial by allowing companies to drive revenue, expand reach with limited budgets, and complement other marketing activities.

1. Presentation to Google UK How Affiliate Marketing Looks in February 2010 Sri Sharma Managing Director 1st February 2010

2. 1Key Stats on Affiliate Marketing 01

3. The UK affiliate market was worth £3.82bn in 2008, 22% growth in 2008 and projected to cross £4bn 2009. Source: Econsultancy, Nov 2009 02

4. The UK market for Search Engine Marketing was worth £2.42bn in 2008, 23% growth in 2008, projected to grow by 12% in 2009. Source: Econsultancy, Nov 2009 Paid Search forms 59.3% of all online advertising in the UK. Source: IAB UK, Apr 2009 03

5. 2Affiliate Marketing –- How it works 04

6. Where a third party advertises products or services on behalf of a retailer in return for an agreed commission for a sale or lead. 05

7. Term covers the whole industry: Affiliate Publisher Affiliate Network Merchant Agency 06

8. 34% full time, 46% part time, 20% hobbyists 18% female, the rest male Source: Econsultancy, Nov 2009 07

9. 80/20 is actually 99/1 08

10. 3Affiliate Marketing Mix 09

11. True content (SEO) 36% Paid Search (PPC) 20% Price comparison 11% Blogs and forums 8% Cash-back and reward 5% Email marketing 5% Voucher codes 5% Shopping directories 4% Social networking 3% Corporate intranet 2% Source: Econsultancy, Nov 2009 10

12. 4Key Metrics for the Client in Affiliate Marketing 11

13. Typically Direct Response Goals Target marketing Cost per sale Contribution to profit of each incremental sale Revenue generated per £1 spend Cost per acquisition - paid to the affiliate (CPA) Conversion Rate Earning per Click (EPC) 12

14. 5The Client Perspective – Why an Affiliate Marketing Strategy? 13

15. Drive revenue Expand reach with limited budget Low financial risk Easy to measure Improve brand visibility and awareness Influence other marketing activities Complement other marketing activities Board directors increasingly get it Increasingly accepted part of the marketing mix 14

16. 6Affiliate Marketing Strategy Examples 15

17. ContentSEO 16

18. Rise ofVoucher Codes 17

19. SocialNetworking 18

20. PPC 19

21. Thank you Do you have any questions? E: sri@netmediaplanet.com T: +44 (0) 203 008 8321 Tweet me: @srisharma www.netmediaplanet.com 2009 20