More Brands Employing Affiliate and Partnership Marketing: IAB State of Nation Report

Why It Matters

Affiliate marketing is solidifying as a strategic, full‑funnel channel in Australia, directly boosting revenue for brands while reshaping how publishers monetize traffic. Understanding the emerging AI and attribution hurdles is critical for marketers aiming to protect ROI and stay competitive.

Key Takeaways

• 42% of advertisers increased affiliate spend last year
• Two thirds of publishers reported higher affiliate revenues
• 64% expect affiliate marketing to become more important
• AI-driven discovery pressures attribution, shifting from last‑click models
• Publishers with under 50 staff now represent 58% of participants

Pulse Analysis

The latest IAB Australia State of the Nation report underscores affiliate and partnership marketing’s transition from a niche performance tactic to a core component of the marketing mix. With 42% of surveyed advertisers upping their spend and 95% satisfaction on ROI, brands are recognizing affiliate channels as reliable revenue drivers. This maturity is reflected in the growing reliance on networks—29% of advertisers now partner with external platforms—signaling a shift toward more sophisticated program management.

However, the sector faces new complexities. AI‑powered discovery tools are reshaping consumer journeys, challenging the traditional last‑click attribution that has long underpinned affiliate measurement. Advertisers and publishers alike are grappling with higher fees, budget constraints, and algorithm‑driven traffic volatility. As a result, 64% of respondents anticipate affiliate marketing becoming more pivotal, but only if measurement, attribution and incrementality can keep pace with AI‑induced behavior changes.

The report’s five‑point action agenda calls for industry collaboration on better data, governance and technology standards. Smaller publishers—now 58% of participants—are especially vulnerable to these shifts, highlighting the need for inclusive education and support resources. By addressing trust, transparency and full‑funnel positioning, the Australian affiliate ecosystem can sustain its growth trajectory and continue delivering measurable commercial impact for brands across retail, fashion and the newly dominant travel sector.