Brands are overwhelmingly happy with their ROI from affiliate marketing, IAB Australia finds.
Brands are reporting strong commercial results from affiliate and partnership marketing deals, according to the IAB Australia’s 2026 Affiliate and Partnership Marketing State of the Nation report.
The report, which surveyed 123 marketers, found that 42% of those who use affiliate marketing have increased their investment in the last year, and two-thirds (66%) of publishers have reported a rise in revenues. Most (64%) are expecting affiliate marketing to become more important for them to achieve their business outcomes.
Revenue and sales volumes were found to be an important metric for success, with advertisers overwhelmingly (95%) reporting satisfaction with affiliate marketing’s ability to deliver a return on investment.
The report also highlighted that while 42% of advertisers operate an affiliate programme in-house, more than a quarter (29%) are now using networks – up from 19% in 2025. Travel has overtaken retail and fashion this year to be the top sector operating affiliate programmes.
It also found that more than half (58%) of publishers involved in affiliate and partnership marketing are small firms with less than 50 employees – up from 49% last year.
It’s not all positive, though. The report points to a number of challenges, including budget restrictions, rising costs, and fees that are contributing to limited investment in adspend. Other issues reported were finding affiliate partners that were suitable to the brand, and an increase in competition between advertisers.
The report illustrated five areas in which advertisers and publishers need support in order to prompt a stronger role for affiliate marketing.
These include improving measurement, attribution, and proof of incrementality, which involves moving beyond last-click attribution and demonstrating true incremental sales impact, with clearer, more transparent measurement frameworks.
Affiliate as a full-funnel channel
Another area for improvement was around positioning affiliate marketing as a full-funnel channel. It suggests campaigns should be embedded early in the planning phase and affiliate marketing reframed from a bottom-funnel tactic to a full-funnel growth driver.
Also in need of targeted support are building trust, quality, and governance in the ecosystem; improving education, collaboration, and industry maturity; along with the evolution of data, targeting, and technology capabilities.
Most affiliates not only relate to the challenges marketers face in the modern environment, but also recognise the disruption the industry has experienced in the last few years.
SEO is universally recognised as one of the most important pillars in marketing, but updates to Google search algorithms (38%) and the impact of AI on search and clicks (36%) were common challenges reported by marketers.
Gai Le Roy, chief exec of IAB Australia said: “The report highlights the continued strong role that affiliate marketing has in commerce marketing with brands increasing spend to drive revenue and many publishers using it as an important revenue stream.
“The clear ask of the IAB as an industry body for future success is to develop resources and education to help the industry understand the impact and opportunities of AI.”
These advancements have seen a huge shift in the marketing industry, with some even questioning the future of SEO itself, something that would have been unthinkable just five years ago.
“The 2026 State of the Nation reflects an affiliate and partnership marketing channel that continues to mature and deliver strong commercial impact in Australia,” added Neguin Farhangmehr, managing director and founder of the ND Agency and chair of the Affiliate and Partnership Marketing Working Group.
“Encouragingly, there is growing confidence in the channel not just as a performance driver, but as a more strategic part of the marketing mix, with greater recognition of its role in broader business growth.”
