Why Are Top Brands Rapidly Shifting to Affiliate and Partnership Marketing?
Ever wonder if affiliate marketing is still the secret sauce behind booming brand revenues, or just a tired buzzword fading into the background? Well, the latest IAB Australia 2026 Affiliate and Partnership Marketing State of the Nation Report doesn’t just answer that—it screams maturity and momentum. Imagine nearly half of advertisers pouring more cash into affiliate programs, while two-thirds of publishers are raking in higher revenues. But hold up, it’s not all sunshine and roses—rising costs, shifting AI-driven consumer behavior, and tricky attribution models are throwing some curveballs. The real kicker? Marketers are now scrambling to show up in AI-powered discovery moments, racing against the clock to catch customers at the exact split-second they decide to buy. It’s a wild, evolving landscape that’s not only about clicks and sales anymore—it’s about strategy, measurement, and embracing the AI revolution while it’s still fresh. Curious how these twists will shape the future of affiliate marketing down under? Dive in and see why this channel is no longer just a side hustle but a powerhouse driving serious business growth. LEARN MORE.
The IAB Australia has released its 2026 Affiliate and Partnership Marketing State of the Nation Report, revealing that brands and agencies are experiencing strong commercial results from affiliate marketing. The report highlights a growing maturity in the sector, with increased investment and revenue reported by advertisers and publishers.
Brands and agencies report that affiliate and partnership marketing activity is delivering strong commercial results for brands in Australia and showing clear signs of maturity according to the IAB Australia 2026 Affiliate and Partnership Marketing State of the Nation Report.
The Report, which was released today at the annual IAB Australia Affiliate and Partnership Marketing Summit, points to an experienced and established ecosystem, with 42% of surveyed advertisers who use affiliate marketing increasing their investment over the last year while two thirds of publishers reported increased revenues. It found 64% of respondents expect affiliate marketing to become more important in achieving their business outcomes.
Revenue and sales volumes were identified as a the most important measures of success by advertisers who reported 95% satisfaction levels for affiliate marketing’s ability to deliver return on investment.
The report identified several key challenges and barriers to the growth of affiliate and partnership marketing. Rising costs, fees, and budget constraints were found to be limiting further investment from advertisers, while publishers face disruption from search algorithm changes and the increasing influence of AI on consumer journeys and click behaviour. These shifts are challenging traditional attribution models and will create new measurement challenges in the sector which relies heavily on last-click measurement.
Advertisers and publishers indicated they are beginning to view showing up in AI driven discovery as important to their affiliate marketing success to ensure they do not risk losing an opportunity for visibility at the moment consumers are making decisions.
Gai Le Roy, CEO of IAB Australia commented “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.”
Neguin Farhangmehr, MD and founder of the ND Agency and chair of the Affiliate and Partnership Marketing Working Group said “The 2026 State of the Nation reflects an affiliate and partnership marketing channel that continues to mature and deliver strong commercial impact in Australia. 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. As the market evolves, the findings also highlight an increasing focus on measurement, attribution and incrementality, particularly as AI reshapes consumer discovery and click behaviour.”
The report highlighted five key areas that advertisers and publisher need support. These include improving measurement, attribution, and proof of incrementality; positioning affiliate as a full-funnel, strategic channel; strengthening trust, quality, and governance in the ecosystem; improving collaboration, education, and industry maturity; and the evolution of data, targeting, and technology capabilities.
Other key findings include:
While 42% of advertisers operate their affiliate program in house, a great proportion of this year’s survey sample of advertisers are now using networks (29% versus 19% last year).
58% of publishers who are involved in affiliate and partnership marketing are smaller publishers with less than 50 employees, up from 49% last year.
Retail and fashion continue to be the top advertiser categories operating affiliate programs, though this year travel has overtaken them to be the top category for publishers.
The State of the Nation report, which is in its’ 8th year, is based on research conducted during March and April 2026 by the IAB Australia Affiliate and Partnership Marketing Group to explore the experiences and plans with affiliate and partnership marketing from both agencies and advertisers along with affiliate publishers and partners. 123 respondents with experience in affiliate and partnership marketing completed the survey, 66 agencies and advertisers and 57 publishers or partners.
The Affiliate and Partnership Marketing Group includes representatives from Are Media, Commission Factory, Future, ND Agency, impact.com, News Australia, Partnerize, Rakuten, Skimlinks, Nine and WPP Media.
A range of resources have been developed by the IAB Affiliate Marketing Working Group to assist marketers and agencies, including the Affiliate Program Compliance Guide and the Best Practice Guide for Downloadable Software in Affiliate Marketing.
