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Key Insights on Affiliate Marketing from PMA’s Annual Survey

Nov 08, 2024
Key Insights on Affiliate Marketing from PMA’s Annual Survey


The latest survey from the Performance Marketing Association (PMA) dives deep into the trends and strategies that have proven effective, revealing a path for brands eager to maximize their potential in the affiliate space.

In an exclusive episode of the Revenue Boost podcast, Tricia Meyer, Executive Director of the Performance Marketing Association (PMA), discussed the latest findings from the PMA’s annual survey, which includes data from over 300 affiliate programs.

In this article, let’s explore seven  data-backed insights that can elevate your affiliate strategy and drive sustainable growth.

 

Insight #1: Platform Usage Among Retailers: The Value of Streamlining

The survey reveals that a substantial 91% of affiliate programs operate on a single network or platform. For brands, this single-platform approach offers cost-efficiency and simplicity in managing affiliate relationships. By focusing on one main platform, brands can reduce fees and concentrate on optimizing their engagement and performance.

Networks like Impact, CJ, Awin, and even smaller niche platforms continue to improve, adapting to meet the diverse needs of retailers. This adaptability allows brands to make the most out of their platform of choice without needing to diversify across multiple networks, streamlining processes and saving valuable resources.

 

 

Insight #2: Program Size and Publisher Activity: Quality Over Quantity

While many affiliate programs approve large numbers of publishers—often over 500—only a select few actively drive clicks and sales. Programs that focus on around 100 or fewer active publishers have shown to be more effective, illustrating that a targeted, quality-driven approach can outperform a large-scale, quantity-driven strategy.

For brands, this insight opens up an opportunity for optimisation. By evaluating publisher performance, companies can focus their resources on high-performing partners and strategically re-engage or remove inactive ones. This not only improves program efficiency but also fosters stronger relationships with top publishers.

 

 

Insight #3: Program Maturity and Growth Potential: Affiliate Marketing’s Long-Term Value

Unlike many other marketing channels, which often experience diminishing returns over time, mature affiliate programs continue to grow and yield positive results. Programs that have been active for four or more years not only attract more publishers but also maintain a higher percentage of active, revenue-driving partners. This trend underlines the importance of longevity in affiliate relationships—publishing partners become more effective as they grow familiar with the brand and its audience.

This finding highlights the power of a long-term view in affiliate marketing. Building and nurturing these relationships over time doesn’t just drive consistent results; it helps reduce acquisition costs as partners become more aligned with brand goals, making affiliate marketing a highly cost-effective channel for brands committed to growth.

 

 

Insight #4: Publisher Types and Spend: Embracing a Diverse Approach

Cashback, loyalty, and coupon sites remain popular among retailers, making up roughly 60-70% of affiliate spend. Yet, the survey also finds that 40% of brands have expanded beyond these traditional models, successfully partnering with content creators, influencers, and other publisher types.

This trend highlights a shift in affiliate marketing as brands recognize the benefits of a diverse publisher mix. Content creators and influencers, for instance, provide brands with access to highly engaged, niche audiences. For companies seeking to broaden their reach, diversifying publisher types offers flexibility in the ways they attract new customers and grow revenue—whether through trusted loyalty sites or dynamic influencer collaborations.

 

 

Insight #5: Toolbars and Downloadable Extensions: A Strategic Play Despite Controversy

Toolbars and downloadable extensions in affiliate marketing have historically sparked debate, with critics questioning their value due to their potentially intrusive nature. However, the survey reveals that 88% of retailers are actively working with these tools, underscoring their established role in the affiliate ecosystem.

Despite the criticism, toolbars and extensions drive incremental sales by encouraging consumers to add more items to their cart or to remain loyal to a particular retailer. For brands concerned about consumers drifting to competitors, these tools can be pivotal, offering not only measurable sales impact but also loyalty reinforcement. Brands are encouraged to adopt best practices for managing these partnerships, balancing the benefits with the need to protect consumer experience.

 

 

Insight #6: The Rise of Subnetworks: Expanding Reach Through Partnerships

Subnetworks—platforms that operate as intermediaries between retailers and smaller affiliates—are another significant part of the affiliate landscape, with a remarkable 96% of brands using them. Subnetworks simplify access to affiliate marketing for smaller publishers and influencers who might otherwise lack the resources to work directly with major retailers.

For brands, subnetworks serve as a way to extend their affiliate reach without directly managing thousands of relationships. Particularly useful in influencer marketing, subnetworks empower brands to connect with diverse audiences while maintaining centralised program oversight. This approach allows retailers with limited in-house resources to scale their affiliate programs effectively, reaching new markets and audiences with minimal overhead.

 

 

Insight #7: Industry Growth and Future Outlook: Diversification and Data-Driven Confidence

The affiliate marketing landscape continues to evolve, driven by increasing diversification and the availability of data-backed insights. The PMA’s survey underscores the adaptability and maturity of affiliate marketing, which supports brands of all sizes, industries, and marketing models.

As more brands embrace affiliate marketing, they benefit from data that showcases various approaches to success—from cashback-driven models to influencer partnerships and niche subnetworks. This flexibility allows brands to adopt affiliate strategies aligned with their unique goals, audience segments, and resources. The key takeaway is clear: affiliate marketing is more than a one-size-fits-all approach. It’s a dynamic, customisable channel that grows stronger over time.

 

 

Building a Resilient Affiliate Strategy


The Performance Marketing Association’s survey reveals the versatility and growth potential of affiliate marketing. From streamlined platform usage and focused publisher partnerships to diverse affiliate types and innovative subnetworks, the findings offer a roadmap for brands eager to elevate their affiliate programs. With each insight, it’s evident that affiliate marketing rewards strategic investment and long-term relationship-building. For brands aiming to diversify revenue streams and foster loyal, engaged audiences, affiliate marketing remains an invaluable channel, delivering sustained growth through data-driven, tailored approaches.



Connect with Tricia on LinkedIn to stay updated and engage with her expert insights!

Tune into the Revenue Boost Podcast to explore strategies that can drive your business growth. 

Ready to elevate your business and boost your revenue? Let’s chat! Connect with our expert marketing advisors today and discover tailored strategies to propel your growth. Visit our website for more.

Kerry Curran

Author


Passion for marketing, business development, and growth strategy has been the driving force behind her career since earning her MBA from University College Dublin in 2003. With two decades of leadership experience at premier agencies such as iProspect, Catalyst Digital Marketing, Digitas, GroupM, and Gen3 Marketing, Kerry has consistently crafted and executed innovative marketing and growth strategies for both clients and agencies, cementing her reputation as a visionary in the industry.

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© 2024 Revenue Based Marketing Advisors. All Rights Reserved.

Kerry Curran


Passion for marketing, business development, and growth strategy has been the driving force behind her career since earning her MBA from University College Dublin in 2003. With two decades of leadership experience at premier agencies such as iProspect, Catalyst Digital Marketing, Digitas, GroupM, and Gen3 Marketing, Kerry has consistently crafted and executed innovative marketing and growth strategies for both clients and agencies, cementing her reputation as a visionary in the industry.

Get in touch to find out more

Connect to an expert
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