As we end another year, it is an important time to revisit budgets for 2025 and beyond. Whether you’re aligning marketing spend with the financial year or setting targets for the calendar year, a comprehensive check-in on budgets across all marketing channels can ensure the business is well-positioned for success.
Unlike other digital marketing channels, affiliate marketing programs are not regulated by strict set budgets. As a performance-based model, the more exposure brands gain, the higher the anticipated sales revenue the brand pockets. To boost affiliate exposure, brands would need to increase commission rates or offer tenancy fees. Limiting spend, therefore, limits revenue potential. Here are some valuable tips and tools to help brands and agencies optimise their programs and maximise return on ad spend (ROAS).
Dive into the data: reflect on reporting and historical performance.
A great place to start is by reflecting on 2024 performance, analysing any KPIs and targets that were in place over the year. Commission Factory offers a comprehensive series of reports that track and measure program performance across several relevant metrics, such as transaction data, affiliate performance, and sales revenue. Each report is designed to help advertisers dive deeper into their marketing activity within the channel and make informed decisions about how these metrics can be improved, scaled and optimised. Drilling down into custom time frames using the date picker tool allows brands to compare performance across different key periods. Marketers can also download any relevant data to present it to key stakeholders who may not use Commission Factory in their day-to-day activities.
Custom Reports
Using data-driven decisions to shape the budget for the upcoming year is key to setting clear goals and objectives for the channel. Advertisers can automate and elevate their reporting and analysis using Custom Reports, a feature that gives brands the autonomy to track and measure custom data points passed through our robust tracking. This powerful reporting tool can help marketers gain deeper insights into their affiliate program by reporting on unique metrics that are passed through Commission Factory, as well as creating and scheduling regular automated reports to their teams’ inboxes. For example, a weekly or monthly spending report sent directly to selected emails will help automate a pulse check for next year.
Benchmark Reports
Marketers can also take advantage of Benchmark Reports, helping compare performance, commission rates, publisher mix and more to peers in their industry. This data can be easily exported as CSV or PDF and shared with key stakeholders to justify decisions for the year to come.
For example, you might notice from the Benchmark Reports that your business is heavily reliant on a specific publisher type compared to other brands in your industry. In this instance, you may have a case to justify distributing your budget more equitably to other publisher types to ensure you are maximising your affiliate spend and optimising your program.
In a webinar, we heard from our client, Ecosa, shared the following insights:
“Having the data laid bare in the Benchmark Reports proved that optimising with specific publishers could give them a competitive edge and strengthen their position in the market, something that would otherwise be a case of trial and error. Benchmark Reports remove the guesswork out of the strategy and allow us to focus on measurable and sustainable goals for future campaigns”
Click here to listen to the full webinar.
Cross-Channel Attribution
For those looking to optimise their program in 2024, we are proud to offer Cross-Channel Attribution, a tool that allows advertisers on our Elevate plan to gain better insights into the consumer journey and understand the value of each marketing channel or touchpoint, in the conversion process. Brands can access insights such as:
- How certain partners directly affect revenue when involved in the journey path
- Which partners drive the most solo conversions
- Which channels perform better when they appear together in a successful purchase
- Which partners increase average order value (AOV) and/or basket size
- Which partners can be detractors to customers making a sale
The above are just some examples of what can be derived from this enhanced reporting suite. To learn more about upgrading to Cross-Channel Attribution get in touch with our experts here.
Leverage a Commission Structure: review default and custom commissions.
The best way to maintain a healthy affiliate partnerships channel is to ensure that default rates for the program are scalable and allow room for movement in performance due to growth and seasonality. A default rate offered to partners should align with the budget, goals and be competitive. However, it is also recommended to leave room for short-term commission increases so brands can harness relevant placement opportunities and drive more revenue with their affiliates.
For optimisations and ongoing opportunities, we highly recommend Custom Commissions. This powerful feature rewards affiliates automatically at the point of conversion based on rules the advertiser has set up. Brands on Commission Factory can commission and report on limitless custom variables on a product level, including (but not limited to):
- Individual SKU (useful for commissioning on or excluding items such as gift cards)
- Product category and sub-category
- Individual item sale value
- Overall sale value of the order
- Any other custom variable required, for example "Full price” or “Sale Price” options
Brands can also choose to commission based on affiliate or transaction parameters, including (but not limited to):
- Partner type
- Number of transactions
- Traffic source
- Tiered sales targets
- New vs return customers
For 2025, brands may want to focus their commission targets on selected SKUs to protect margin and maximise ROAS. By having a bespoke commission for specific items or affiliates, brands can further align commission rules to next year’s KPI’s.
Stay Competitive: Position Your Brand for Success with a Tenancy Budget
While commissions will typically comprise the bulk of affiliate channel spend, we strongly recommend allocating a tenancy budget to the channel at the start of the year. This ensures flexibility for campaigns that require flat fees or hybrid payment models, which are becoming more prevalent as verticals like content, social media/influencers, and hybrid cashback grow in the Australian affiliate space, mirroring trends in the UK and US. Whether through direct negotiation, opportunities in Commission Factory’s Placement Marketplace, or offers presented by your account manager or agency, a dedicated tenancy budget allows brands to capture valuable exposure.
As we approach 2025, refining the affiliate marketing budget is crucial for success in this performance-driven channel. Analysing last year's data and leveraging tools such as Custom Reports, Benchmark Reports, and Cross-Channel Attribution could be the make or break for a brand’s marketing strategy in the coming year. Balancing default commission rates, utilising Custom Commissions, and setting a dedicated tenancy fee budget ensures flexibility and strategic alignment with any goals prioritising ROAS. In essence, a meticulous and data-driven approach to budget planning sets the stage for continued success in the affiliate channel and across all marketing channels next year.
If you're an eCommerce brand wanting to help reach your 2025 goals, get in touch with us about working with the Commission Factory. Alternatively, register as an affiliate or an advertiser on our platform today.
Connect with the Commission Factory team to learn more about how we help brands and partners build and grow their affiliate marketing strategies.