Australian businesses increasingly adopt Affiliate Marketing in 2019

The latest report from IAB Australia shows that Australian Businesses are increasingly seeing results from Affiliate Marketing, and are quickly adopting the model.

This month IAB Australia released their Affiliate Marketing Australian Industry Review – January 2020. And, the results will certainly have implications for New Zealand industries.

Key trends of the IAB Australia Survey:

• Of survey participants, almost a third of brands and agencies currently spend over 10% of their marketing budgets on Affiliate Marketing and this is expected to grow.
• Spending on affiliate marketing is increasing. 7 out of 10 respondents have increased their Affiliate Marketing spend over the last year, and the same proportion plan to increase their spend in the next 12 months
• Affiliate market is perceived as highly cost-effective, 84% of participants rated the ROI of Affiliates as 7 out of 10 or higher when compared with other Marketing channels. For over half of Affiliate Marketers, the channel drove 20% or more in new customer sales.

How are Australian businesses budgeting for Affiliate Marketing in 2019?

Respondents reported that budget for Affiliate Marketing mostly comes from the marketing Department. For companies who had increased spend on Affiliate Marketing, most had reallocated budget from PPC or social.

This is likely to indicate that Affiliate Marketing is delivering results above those seen for PPC or social activities.

If you are already driving traffic and sales through PPC or social, then Affiliate Marketing is certainly worth considering as a channel to deliver results.

Payment Models used by Affiliates in 2019

When looking at payment models for Affiliate Marketing in Australia in 2019 the most popular method is CPA (Cost per Action, or Commission), but it is common to use more than just CPA. The payment models currently used by affiliates surveyed are:

• 99% CPA (Cost per Action, Commission)
• 47% Tenancy Fees (Bonuses for Placements)
• 19% CPC (Cost per Click)
• 16% CPL (Cost per Lead)
• 4% CPM (Cost per 1000 impressions)

How many new customers did Affiliate Marketing drive in 2019?

For over half of Affiliate Marketers in the IAB Australia survey, the Affiliate channel drove 20% or more in new customer sales. And Affiliate Marketing drove a huge 50%+ of new customers for a fifth of survey respondents.

% of respondents indicating the proportion of customers coming from affiliate programs are new customers

% of New Customers
1-5%	18%
5-10%	12%
10-20%	17%
20-30%	9%
30-40%	15%
40-50%	8%
50%+	21%

 

Affiliate models – which types of affiliate marketing were the most effective in 2019?

The top 3 affiliate marketing models perceived as the most effective by survey respondents were:

1. Content
2. Reward (including cashback websites, and Loyalty/ Points Programs)
3. Comparison Shopping Engines

All of these websites exist and generate traffic, leads and sales on the SLICE Digital network in New Zealand.

What does the IAB Australia Survey mean for New Zealand Businesses?

The results from the IAB Australia survey mirrors a trend that SLICE Digital have started to see in New Zealand.

The results show that those using Affiliate Marketing are seeing good results, and spending increasing proportions on their budget on the channel. A large portion of respondents are moving their budget spend away from PPC or social, indicating that that Affiliate Marketing offers better results.

Businesses that are using Affiliate Marketing report great results, with over half saying that the Affiliate channel drove 20% or more in new customer sales. And Affiliate Marketing drove a huge 50%+ of new customers for a fifth of survey respondents.

In short, Australia is following the US, UK and Europe in rapidly adopting affiliate marketing and seeing excellent results.  The trend WILL follow in New Zealand with brands such as Kathmandu, OnceIt, Bendon Lingerie and Airbnb already utilising the SLICE Digital affiliate network to grow their online sales and generate an amazing return on investment.  Right now is a great time to get ahead of the curve in NZ and help to lead the trend here. Get in touch today to discuss the benefits.

 

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About SLICE Digital

SLICE Digital is an IAB Award Winning New Zealand based affiliate marketing network. We work with a range on online businesses from well-known NZ brands to new ecommerce startups, connecting NZ advertisers with NZ affiliates to help grow their online revenue. We are passionate about helping our partners grow their affiliate marketing activities to play a significant role in generating incremental online sales.