Performance Marketing Trends in Australia and New Zealand

Becky Doles

This is a guest post provided by Jack Media.

Australian and New Zealand performance marketing is still in its infancy, but we’re on the fast track to catching up to our friends in the UK and the States. With the rise and fall of multiple Australian affiliate networks, the Australian performance marketplace has the stage set for massive growth, with numerous networks pushing to claim their market share.

After a slow start, Australian e-commerce is rapidly growing, which means affiliate marketing is only going to become more relevant to those who are selling online. As it stands, the affiliate channel in Australia and New Zealand is poised to claim an ever increasing share of advertiser’s digital marketing budgets in 2013. The larger brands are also taking notice of the affiliate channel as it gains momentum and respect in the digital landscape.

Australian affiliates are some of the most innovative in the world, developing robust omni-channel marketing strategies for consumers who are embracing new ways to engage and shop. Advertisers are under increasing pressure to reach out to their audiences on these new channels, which allows nimble tech savvy affiliates to fill the gap in the market and take advantage of these fantastic opportunities.

2013 has seen more advertisers spotlight the performance space as they attempt to cut costs and strive for seamless integration and performance tracking across all marketing channels. Australian advertisers have been utilizing the performance methodology by testing new techniques, such as retargeting and cart abandonment technology, to track and ensure they make incremental gains. The obvious next step for many of these advertisers is to launch an affiliate performance campaign, however much more education about the space is needed.

Affiliate marketing channels that are growing:

  • Lead generation verticals such as electricity comparison, telecommunication and market research are currently seeing strong performance with multiple advertisers understanding the power of lead and data capture.

  • Cash Back and coupons sites have not gained traction with Australian consumers as quickly as in the UK and North American markets. The last 12 months have seen the number of coupon, cash back and rewards sites spike, and consumers warm to online rewards platforms and discounts.

  • Co-registration or host & post are currently a very strong channel with growing numbers of both publisher and advertisers understanding the power of the channel. Innovative solutions, integrations and good competition for user eyeballs are making this a HOT SPACE!

Tips for launching affiliate marketing campaigns in Australia or New Zealand

Are you looking to launch a new Australian affiliate program this year? Make sure to include an online competition or product giveaway featuring products with inelastic demand from local brands that resonate with your target market. CPA offers that include inelastic products are currently converting at a rate 60% above offers that include elastic products. Inelastic product offerings include groceries, fuel and certain luxury goods.

This is a very important trend for online marketers to consider when developing a new marketing campaign. Including products with inelastic demand will result in dramatically higher web display/email open and click through rates, and ultimately higher conversion rates. With these increased conversion rates, advertisers can expect to increase their volumes, while lowering their cost per lead, thus dramatically increasing their ROI. Publishers will welcome the improved conversion rates and higher EPCs. As more CPA campaigns focusing on products with inelastic demand are launched over the next year, this will significantly increase revenues for the entire affiliate marketing industry in both Australia and New Zealand.

Becky Doles

Becky is the Senior Content Marketing Manager at TUNE. Before TUNE, she led a variety of marketing and communications projects at San Francisco startups. Becky received her bachelor's degree in English from Wake Forest University. After living nearly a decade in San Francisco and Seattle, she has returned to her home of Charleston, SC, where you can find her enjoying the sun and salt water with her family.