IAB – Significant Growth of Affiliate Marketing in Australia
Ruthson Zimmerman via Unsplash.
Affiliate marketing is emerging as a valuable and sophisticated acquisition channel for advertisers and a growing source of revenue for publishers, IAB Australia’s Affiliate and Marketing Partnership Report shows.
The IAB interviewed agencies and advertisers, as well as publishers and partners.
Retail, fashion, and technology were found to be the top advertiser industries for affiliate marketers, while retail, fashion, and food & beverage were the top industries for affiliate marketers. activity of publishers.
Reward models – including cashback websites and loyalty points/programs – were ranked among the highest affiliate models among advertisers, followed closely by content and email. For publishers, however, content came out on top as the primary promotional method, slightly ahead of reward models and coupons/deals.
COVID-19, inflation, and other headwinds facing the industry don’t seem to have affected the affiliate marketing space.
69% of advertisers/agencies say their affiliate marketing budgets have increased over the past year, while 68% plan to increase their affiliate marketing spend again in the next year. next year.
When asked about the impact over the past two years, 75% of advertisers reported an increase in revenue from the affiliate model, with 80% of publishers reporting an increase in revenue.
Content is essential in the affiliate space
Focusing on targeting consumers at the right time was mentioned as a success factor in the affiliate space in a panel moderated by Zac Selby, director of programmatic solutions at dentsu.
Jade McDade, Head of E-Commerce – Audience and Partners at News Corp, said, “With News Corp, from a print perspective, print is very linear, isn’t it? You read a magazine, you get inspired, and then you may or may not go to the store and buy something.
“In digital, there are a lot more levers you can use to influence which stage of the marketing funnel you target and how you target it as well.”
“The customer journey is not linear in digital, so content can play a very important role in both guiding a purchase and capturing people at the end of the funnel.”
Rogelio Alcaraz, Head of Subsidiaries and Partnerships at vitamin company Vitable, said: “The challenges [in the affiliate space] are really around how you can manage all of your partnership volumes and how you can optimize campaigns, more than a budget constraint from the top.
McDade stressed that it’s crucial to listen to what customers want, saying, “If we’re not thinking about the audience – getting someone to an item and getting someone to buy something – then we’re not are not going to succeed.
“It’s about understanding what consumers are telling us and how we can make those experiences more authentic and contextual.”
On the challenges around tracking and third-party cookies, Alcaraz said, “I think it’s very important that we all take this very seriously and develop an action plan to make sure the tracking is accurate.
“If we don’t, our partners won’t get the reward, which means they’ll have less incentive to work together, which means we’ll lose the relationship.
“Ultimately, our partner’s success is our success; if they grow, we grow.
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