IAB Australia’s latest Affiliate and Partnership Marketing State of the Nation Report suggests the channel is delivering solid commercial returns for brands, with advertisers increasing spend and publishers reporting stronger revenues.
Released at the IAB Australia Affiliate and Partnership Marketing Summit, the 2026 report found 42 per cent of surveyed advertisers using affiliate marketing increased their investment over the past year.
Two thirds of publishers also reported higher revenues, while 64 per cent of respondents said affiliate marketing will become more important in achieving business outcomes.
For advertisers, revenue and sales volume were the leading measures of success. The report also found 95 per cent satisfaction with affiliate marketing’s ability to deliver return on investment.
Gai Le Roy, chief executive officer of IAB Australia, said the findings showed affiliate marketing continues to play a strong role in commerce marketing.
“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,” Le Roy said.
She said the industry body’s next priority is to build resources and education around artificial intelligence. “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.”
Gai Le Roy
AI and measurement emerge as pressure points
While the report points to a more established market, it also identifies several constraints on further growth. Advertisers cited rising costs, fees and budget pressures, while publishers pointed to search algorithm changes and the growing influence of AI on consumer journeys and click behaviour.
According to the report, those changes are creating new challenges for measurement and attribution in a sector that has traditionally relied heavily on last-click models. Advertisers and publishers also said visibility in AI-driven discovery environments is becoming more important to affiliate marketing success.
Neguin Farhangmehr, managing director and founder of ND Agency and chair of the Affiliate and Partnership Marketing Working Group, said the findings reflect a channel becoming more strategic.
“The 2026 State of the Nation reflects an affiliate and partnership marketing channel that continues to mature and deliver strong commercial impact in Australia,” Farhangmehr said.
“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.”
Farhangmehr said the market’s evolution is also sharpening the focus on attribution and incrementality as AI reshapes how consumers discover brands and click through to offers.
What the industry says it needs
The report highlighted five areas where advertisers and publishers want more support. These include improving measurement, attribution, and proof of incrementality; positioning affiliate as a full-funnel strategic channel; strengthening trust, quality, and governance; improving collaboration and education; and evolving data, targeting, and technology capabilities.
Other findings showed 42 per cent of advertisers now run affiliate programs in-house, while use of affiliate networks rose to 29 per cent from 19 per cent a year earlier. Among publishers active in affiliate and partnership marketing, 58 per cent were small businesses with fewer than 50 employees, up from 49 per cent last year.
Retail and fashion remained the leading advertiser categories operating affiliate programs. For publishers, travel overtook those sectors as the top category this year.
The report is now in its eighth year and is based on research conducted in March and April 2026 by the IAB Australia Affiliate and Partnership Marketing Group. A total of 123 respondents completed the survey, including 66 agencies and advertisers and 57 publishers or partners.
The working group includes representatives from Are Media, Commission Factory, Future, ND Agency, impact.com, News Australia, Partnerize, Rakuten, Skimlinks, Nine and WPP Media.