through partnershipsthrough partnerships 04The five pillars of partnership sophistication Methodology 1. Diversify your partner mix. 2. The results-oriented investment shift. 3. Deploy AI for scale. 4. Elevated creator partnerships. 5. Bridge the measurement gap. 02How Marketers in Australia are Evolving 05The future opportunities ontents03The competitive advantage behind 06 partnership sophistication Appendix 01Methodology “Affiliate marketing is a fundamental part of the performance marketing channel at Xero. Sincelaunching our global partnership program on impact.com in early 2025, the channel hastransformed into a scalable growth engine. The results are clear — we are driving accelerated,profitable customer acquisition.” -Ian Wheller, Global Head of Affiliate Marketing & Referrals, Xero This report is part of a global Conducted in mid-2025. 80 Australian marketers study commissioned byimpact.com to exploreinto ascalable, performance-drivengrowth engine.howaffiliate and partnershipmarketing is evolving Independent survey of. Markets: Australia, US, UK,Canada, Singapore, France,Germany, Italy.818marketers, 284 publishers, 421 content creators A diverse mix of industries,including retail, tech, media, and finance. Mix of company sizes, includingSMBs and enterprise brands. 02How Marketers in Australiaare Evolving Australian marketers are increasingly investing in partnershipsAustralian marketers are increasingly investing in partnerships In the face of rising customer acquisition costs, Australian marketers are doubling down on partnerships as a strategic growth lever. Affiliate marketing,once considered a niche tactic, has evolved into a sophisticated, full-funnel channel delivering measurable outcomes — helping brands drive revenue,acquire high-value customers, and boost brand visibility through trusted, performance-based relationships. Globally, 74% of marketers have increased affiliate investment due to other marketing channels becoming more expensive, 71% consider it more cost-In the face of rising customer acquisition costs, Australian marketers are doubling down on partnerships as a strategic growth lever. Affiliate marketing,once considered a niche tactic, has evolved into a sophisticated, full-funnel channel delivering measurable outcomes - helping brands drive revenue,acquire high-value customers, and boost brand visibility through trusted, performance-based relationships. effective than other strategies, and 66% report stronger ROAS.Globally, 74% of marketers have increased affiliate investment due to other marketing channels becoming more expensive, 71% consider it more cost-effective than other strategies, and 66% report stronger ROAS. 71%of Australian marketers have increased71%ofAustralianmarketershaveincreased 80%report stronger Return on Ad Spend80%report stronger Return on Ad Spend 83%agree it's more cost-effective than other83% their investment in affiliate marketingdue to increasing costs in othermarketing channels.Source: Australia Marketer Survey (n=80), The State of Affiliate Marketing (2025)their investment in affiliate marketingdue to increasing costs in othermarketing channels. marketing strategies. 03Why? Competitive advantage The competitive advantage behind partnership sophistication In a fragmented media landscape, partnerships bringa rare combination of trust, reach, and measurableROI. As traditional paid media loses impact,performance-driven partnerships are deliveringsustainable competitive advantage. Top 3 reported affiliate marketing goals % More cost effective marketing38 % Increase sales38 34% of brands indicated they generatedfrom their affiliate programtheir company revenue % Targeted audience reach Question:What areyour top3goals foryour affiliate program in the nextyear?Select3Top 3 most used affiliate success metrics the past year. 38%Return on ad spend(ROAS) more than 26% 33%Customer engagement rate Source:Australia Marketer Survey(n=80),The State of Affiliate Marketing(2025)Question:What metrics doesyour companyuse to measure the success of its Affiliate marketing has evolved from atransactional tactic into a strategic, full-funnelgrowth engine. Top-performing brands arereshaping how they invest, who they partner with,and how success is measured. The report defines partnership sophistication using a five- pillar framework:1. Diversify your partner mix. 2. The results-oriented investment shift. 3. Deploy AI for scale. 4. Elevated creator partnerships. 5. Bridge the measurement gap.Let’s explore how each pillar is taking shape. Diversify yourpartner mix4 High-performing affiliate programs don’t rely on a single partnertype. They build intentionally diversified ecosystems that cover theentire customer journey -from discovery to conversion to retentionand even advocacy. Across global markets, brands now partner with an average of 3–4 different partner types, moving beyond narrow conversion-focused strategies