Australian retailers lagging on affiliate marketing

By Wenlei Ma | 29 April 2013

Affiliate marketing network DGM has expanded its operations to Melbourne off the back of business from The Iconic, Kogan and Microsoft. However, the agency said Australian retailers still aren't up to scratch.

DGM said the company has added 20 retailers to its network in the past six months which also included the likes of Marks & Spencer and Sony. DGM general manager John Matthews claimed DGM was delivering more than $10 million in ecommerce sales each month for its clients.

As a result of the growth, DGM has opened its doors in Melbourne with its first team member in the Victorian capital, Kertu Liina-Lehismae who joined from Rakuten-Linkshare in the UK.

Matthews said: “Large retailers such as Big W, specialist online merchants including Kogan and The Iconic, and global giants Microsoft, Sony and Marks & Spencer are among more than 20 new clients to the DGM affiliate network.

“We are seeing the momentum build for affiliate marketing in Australia as local online retailers learn about the unique benefits of the channel while international retailers are looking to grow their incremental sales through our specialist retail publisher base.”

But Matthews warned Australian retailers are falling behind their overseas counterparts.

He said: “Australian retailers have some catching up to do compared to their US and European counterparts. In the US and UK, 100% of the country's top 20 multi-channel retailers are operating an affiliate marketing program. Here in Australia, only a handful of those businesses are using the channel at the moment. We are expecting much more growth in the next 12 months as more retailers and merchants embrace the cost per acquisition model that operates in the affiliate space.”

DGM has also hired Peter Hammond from Shopping.com as a business development manager and Alexandra Lochhead from a UK fashion retailer as client services account manager.

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