Affiliate and partnership marketing is on the rise in Australia, with advertisers doubling down on performance-based channels to weather economic uncertainty. According to the latest IAB Australia Affiliate and Partnership Marketing Report, 89% of brands and agencies using the channel plan to maintain or increase their investment over the next 12 months.
Now in its seventh year, the report highlights growing confidence in the affiliate space. It also reveals a clear need for better tools, education and standards, particularly around measurement, tracking, payment models, and best practices.
Launched today at the IAB Affiliate and Partnership Marketing Summit in Sydney, the report draws on responses from 140 industry professionals across agencies, brands, publishers and affiliate partners.
A performance-first response to economic pressure
More than 60% of marketers surveyed say affiliate and partnership marketing will become even more important to their business this year, with many citing tightening budgets and search algorithm changes as key challenges.
“Affiliate and partnership marketing has proven to be a resilient and results-driven channel, especially in challenging economic conditions,” said Gai Le Roy, CEO of IAB Australia. “As the industry expands, developing best practices will be vital for building trust, transparency and long-term value.”
Content and rewards dominate affiliate strategies
While advertisers are tapping into a variety of affiliate formats, content-led strategies and rewards-based models are considered the most effective. Content partnerships are currently the most commonly used method by brands.
Despite some experimentation with mixed and custom attribution models, the report found that the vast majority, 88%, still rely on the last-click model to track affiliate conversions. Only 23% use custom attribution, and just 11% reward first-click interactions.
Retail and fashion lead the charge
Unsurprisingly, the retail and fashion sectors are the heaviest users of affiliate and partnership marketing among both advertisers and publishers. These industries continue to drive innovation in the space, leveraging content creators and partners to enhance reach and revenue.
Industry guidance ramps up
To address ongoing knowledge gaps, the IAB Affiliate Marketing Working Group has developed a suite of resources, including:
• Affiliate Marketing Knowledge Series
• Guide to Tracking Affiliate Partnerships
• Commission Validation: Recommended Practices
• Navigating Affiliate Marketing Attribution in Google Analytics 4
Additional guidelines focusing on compliance and transparency are expected later this year.
The Working Group includes representatives from major players such as Afterpay, Are Media, Cashrewards, Commission Factory, impact.com, News Corp Australia, Rakuten, Skimlinks, Silverbean, and others.