Credit: Denys Nevozhai via Unsplash
Brands are increasing investment in affiliate and partnership marketing, with 42% of advertisers lifting spend over the past year and two-thirds of publishers reporting higher revenues, according to IAB Australia's 2026 Affiliate and Partnership Marketing State of the Nation Report.
The report, based on 123 respondents surveyed in March and April 2026, found 95% of advertisers are satisfied with affiliate marketing's ability to deliver return on investment, and 64% expect the channel to become more important to their business outcomes.
However, the sector faces growing challenges as AI-driven discovery and search algorithm changes disrupt traditional last-click attribution models.
Advertisers and publishers indicated they are starting 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.
"The 2026 State of the Nation reflects an affiliate and partnership marketing channel that continues to mature and deliver strong commercial impact in Australia," said Neguin Farhangmehr, managing director of ND Agency and chair of the Affiliate and Partnership Marketing Working Group.
"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."
Advertisers and publishers said visibility in AI-driven discovery is becoming important to affiliate marketing success as consumers increasingly make decisions through AI interfaces rather than traditional search.
"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," said IAB Australia CEO Gai Le Roy.
Other findings include a shift toward using affiliate networks, with 29% of advertisers now using networks compared to 19% last year.
Travel has overtaken retail and fashion as the top category for publishers.
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