What does the 2022 Affiliate Marketing Industry Review mean for publishers and affiliates? We look at some of the key ideas and takeaways.
Has 2021 changed the way brands spend on affiliate marketing? What payment models and metrics were the most popular? These questions are crucial to the success of publishers in the affiliate space, and it was answered in IAB’s recent survey.
The IAB Australia's 2022 Affiliate Industry Review provides critical insights for publishers. Based on a survey across 140 participants of advertisers and agencies, this report dives deep into the state of affiliate marketing today. As an affiliate, it provides better knowledge of what brands are looking for and what key trends might be forecasted.
Here are some key takeaways for publishers operating in the affiliate space.
Brands spend more, but every dollar counts.
In positive news for affiliates, results show that the pandemic has not slowed down brands’ spending on affiliate marketing. Around 60% of advertisers surveyed have invested more than $10,000 per month on affiliate marketing. Besides that, almost 7 out of 10 advertisers surveyed increased their budgets for affiliate marketing in 2021. But what does this mean for affiliates?
Although spending is important brands are still looking for affiliate partners that fit their profile. Hence affiliates should take this as an opportunity to highlight their value proposition to advertisers. Publishers currently working with brands should also consider ramping up their budgets in promotion and content strategy to get more value.
CPA continues to be the preferred payment model
Similar to last year, cost per action (CPA) continues to be the go-to payment model for advertisers, with 93% of advertisers surveyed preferring it. In terms of attribution, 82% of advertisers allocate CPA commissions to the last referring affiliate, which is also similar to the previous year's results.
While CPA is dominant, advertisers do combine it with other payment models such as tenancy fees, cost per lead (CPL), and cost per click (CPC). In addition, there's also a significant amount of advertisers who pay bonuses to partners who reach a certain goal. As such, affiliates should consider expanding their payment models and be more flexible in discovering a win-win plan for themselves and the advertisers.
Volume of Sales continues to be the most important metrics
On a scale of 1 to 10 in measuring success metrics, advertisers continue to rate 'Volume of Sales' as 8.9. This is followed closely by 'Return on Investment (ROI)' at 8.8 and New Customer Acquisition at 8.6. It's no surprise that sales and ROI continues to be important to advertisers, as achieving healthy bottom lines are more paramount with increasing competition.
Affiliates should look internally at their success rates in these metrics and re-focus their strategies to become better partners to brands. For example, do they have access to a specific market that the brand doesn't? Can brands partner with them and create content that saves time and money? Asking these questions will make them more successful partners for many advertisers.
Brands are adding affiliate partners into their program
83% of brands and agencies are adding affiliates to their programs at least monthly, either through active recruitment or by approving existing affiliate applications. Besides that, nearly half of advertisers are adding partners weekly.
Affiliate recruitment hasn't stopped, and brands are constantly looking for more publishers to market their products and services. As a result, publishers should ramp up their search for great affiliate programs. Those who cannot find a suitable brand to partner with should strongly consider getting help from an affiliate network with connections and experience in the affiliate space.
Commission Factory is one of Asia-Pacific's largest affiliate networks. We have worked with hundreds of brands and publishers around the world to create successful partnerships. If you'd like to be a publisher 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.