IAB's new handbook signals growth of affiliate marketing

Affiliate marketing gains popularity in the digital marketing stakes

The Interactive Advertising Bureau (IAB) Australia has released an industry handbook on affiliate marketing in a bid to better educate the market on this growing digital marketing technique.

The handbook is the first piece of work to come out of the association’s Affiliate Marketing Working Group, established in July, and outlines the mechanisms of affiliate marketing, different types of affiliates, key players and how to utilise technologies.

Affiliate marketing is a form of performance marketing that rewards third-parties for each visitor or customers they bring to a brand’s ecommerce offering.

In a statement, the working group said it plans to follow up its handbook by examining the local affiliate market to determine its size and revenue within the digital advertising and marketing space. Authors included Rakuten Marketing’s Anthony Capano, Cash Rewards’ Chris Carner, and MediaCom’s Isabell Schneider.

According to research undertaken by IAB UK in partnership with PricewaterhouseCoopers, affiliate marketing produced 16.5 billion pounds in sales in 2015, or about 10 per cent of all UK retail ecommerce. The report also stated affiliate marketing generated a 14:1 return on investment.

“I know from my time overseas as a marketer just how valuable affiliate marketing is,” said IAB CEO, Vijay Solanki. “I think we can expect a similar story will soon be told here in Australia as the industry grows in financial importance and reputation.”

David Jones digital marketer, Claudia Dwyer, who was quoted by the IAB in response to the handbook’s launch, said affiliate marketing was an integral part of the department store’s digital channel mix and that it directly drove and influenced customers to purchase on its website.

“We’ve established a solution around our strict brand guidelines, working with transparency across the breadth of our partners, while also streamlining process,” she said. “Affiliates are not only bringing sales to David Jones, they are bringing new valuable customers.

“As affiliate partners and strong top of the of the funnel, influencers continue to grow in Australia, we can also see the opportunity for David Jones to grow with them.”

In a sign of the growing popularity of affiliate marketing, Rakuten Marketing, one of several organisations working in the performance marketing space, posted a 61 per cent rise in revenue for the year for the year to June 2016, with 57 new advertisers joining its affiliate network over that time.

Other brands that have embraced affiliate marketing as a key component of their digital advertising strategy include wealth management company, Yellow Brick Road, and online retailer, AppliancesOnline.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+:google.com/+CmoAu

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Latest Videos

More Videos

More Brand Posts

What are Chris Riddell's qualifications to talk about technology? What are the awards that Chris Riddell has won? I cannot seem to find ...

Tareq

Digital disruption isn’t disruption anymore: Why it’s time to refocus your business

Read more

Enterprisetalk

Mark

CMO's top 10 martech stories for the week - 9 June

Read more

Great e-commerce article!

Vadim Frost

CMO’s State of CX Leadership 2022 report finds the CX striving to align to business outcomes

Read more

Are you searching something related to Lottery and Lottery App then Agnito Technologies can be a help for you Agnito comes out as a true ...

jackson13

The Lottery Office CEO details journey into next-gen cross-channel campaign orchestration

Read more

Thorough testing and quality assurance are required for a bug-free Lottery Platform. I'm looking forward to dependability.

Ella Hall

The Lottery Office CEO details journey into next-gen cross-channel campaign orchestration

Read more

Blog Posts

Marketing prowess versus the enigma of the metaverse

Flash back to the classic film, Willy Wonka and the Chocolate Factory. Television-obsessed Mike insists on becoming the first person to be ‘sent by Wonkavision’, dematerialising on one end, pixel by pixel, and materialising in another space. His cinematic dreams are realised thanks to rash decisions as he is shrunken down to fit the digital universe, followed by a trip to the taffy puller to return to normal size.

Liz Miller

VP, Constellation Research

Why Excellent Leadership Begins with Vertical Growth

Why is it there is no shortage of leadership development materials, yet outstanding leadership is so rare? Despite having access to so many leadership principles, tools, systems and processes, why is it so hard to develop and improve as a leader?

Michael Bunting

Author, leadership expert

More than money talks in sports sponsorship

As a nation united by sport, brands are beginning to learn money alone won’t talk without aligned values and action. If recent events with major leagues and their players have shown us anything, it’s the next generation of athletes are standing by what they believe in – and they won’t let their values be superseded by money.

Simone Waugh

Managing Director, Publicis Queensland

Sign in