Executive Summary (This is a document excerpt)

Affiliate marketing is a low-risk, high-return strategy for online marketers. US affiliate marketing spending will thus reach $4 billion by 2014 and will increase at a compound annual growth rate (CAGR) of 16% from 2009 through 2014. Payments to affiliate sites direct from marketers will represent the majority of the affiliate marketing spending, or 57%, in 2014. Marketers will, however, continue to value affiliate networks for the collaboration and knowledge exchange they allow with affiliates and advertisers alike. Within the next five years, retailers, financial services firms, and online education providers will be the top three spenders in the affiliate marketing arena. Search will remain the main driver of traffic to affiliate sites, and it will not be displaced by other channels such as social networking Web sites or display advertising.

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