The annual Affiliate Marketing Industry Review is out, and it contains critical studies from brands and agencies in the affiliate marketing space.
2021 has been a critical year for advertisers and brands. With so much uncertainty sweeping across many Australian businesses, how has it changed affiliate marketing activities?
The IAB Australia's 2022 Affiliate Industry Review provides valuable insights for brands. Based on a survey across 140 participants of advertisers and agencies, this report dives deep into the state of affiliate marketing today and provides brands with better knowledge when setting goals for the future.
Based on the review, here are some key themes for advertisers operating in the affiliate space.
More spending on affiliate marketing
Interestingly, the pandemic has not decreased industry spending on affiliate marketing activities. Brands continue to ramp up their affiliate marketing spend, with 60% of brands investing more than $10,000 per month on affiliate marketing. Besides that, almost 7 out of 10 advertisers had increased their budgets for affiliate marketing in 2021
But what does this mean for advertisers looking in? After what has been deemed a 'slow' year, most brands are looking to boost their bottom line in the coming year. 2022 isn't a year to 'lay low', and brands that want to stay competitive should consider adopting a more aggressive strategy, especially in affiliate marketing.
Affiliate marketing continues to deliver across all metrics
Advertisers that are still sceptical about the value of affiliate marketing would feel comforted by IAB's findings. Studies show that most advertisers' affiliate marketing activities have performed exceptionally well across all metrics.
Compared to other marketing activities, 72% of advertisers have rated affiliate marketing activities as a 7 and above out of 10 for Return on Investments (ROI). Affiliate marketing has also scored positive ratings in customer acquisition and customer retention metrics.
Advertisers who want to produce positive results through marketing should consider ramping up their affiliate program, or begin one if they have not already. Affiliate marketing is a cost-effective strategy that continues to help many brands thrive, even during uncertain times.
Consumer privacy is more important than ever
As technology and digital footprints increase with eCommerce and online marketing, consumers have become more cautious about their privacy than ever. As a result, brands have a legal and moral obligation to protect consumer privacy.
The IAB review shows that third-party cookies are slowly being retired from website browsers and operating systems. Only 4 in 10 advertisers continue to use third-party cookies in 2021, and many are unsure how third-party cookies are used in their affiliate marketing strategy.
Brands should be more proactive in understanding third-party cookies and how it's used to track affiliates. Consumer privacy is more important than ever, and communication on privacy policies has become more paramount as we adopt digital marketing strategies.
Advertisers are ramping up their affiliate marketing knowledge
Affiliate marketing isn't exactly new. However, its evolving nature means that there's always something new to learn every day. Report finding shows that advertisers are keen on more education and training in the best practices and attribution measurements.
This positive finding showcases the growth of affiliate marketing and how there's a need to learn more about it to be better decision-makers. Brands should consider partnering with affiliate marketing experts with localised market knowledge to ensure that their affiliate budget is well spent in the upcoming years.
Commission Factory is one of Asia-Pacific's largest affiliate networks. We have worked with more than 600 of the world's biggest brands in improving their affiliate strategy. If you'd like to be an advertiser with us, please get in touch with our team today.
To read the 2022 IAB Affiliate Industry Review report findings, click the button below to download it on IAB's website.
About the IAB
IAB Australia is the peak trade association for online advertising in Australia. As an independent industry association with more than 160 members in Australia spanning media owners, publishers, technology companies, agencies and advertisers, IAB works to align industry stakeholders to develop solutions for the issues faced by the market and develop standards that are integral to the operation of digital advertising. The role of the IAB is to support sustainable and diverse investment in digital advertising across all platforms in Australia. IAB Australia shapes the rules of play around measurement, training, global tech and policy work, Tech Lab standards, standardising terminology and supporting the broad media and marketing community.