Expanding your business into the Asia Pacific (APAC) market can be an exciting and challenging time. With 48 countries in the region, it can often lead many to question where they should begin. Australia is proving itself to be the growing frontrunner in the region with increased affiliate talent and valuable brands expanding to the country in the last few years.
Australia has a population of approximately 26 million people with an internet penetration of 88%. Year over year, e-commerce sales continue to rise, with 2019 showing a steady 17.2% increase from 2018.
While this means digital marketing is a must for any brand nowadays, partner marketing is a standout since it is a pay for performance channel. Brands are catching on to the minimal, upfront cost this channel boasts and converting their digital strategy accordingly.
The IAB Australia’s latest 2020 insights reported that over one-third of brands and agencies are allocating around 10% of their overall marketing budget in the affiliate/partnerships space with intentions to continue to increase that spend over the next 12 months. Partner marketing has shown its value in ROI and brands are viewing the channel as a necessary part of their overall marketing strategy.
Besides the statistics that back up expanding your program to the region, Australia’s geographic location along with its generally western culture, make it a prime location for European and American business to capitalize. If you feel Australia is the next step for bringing your business to the APAC region, then read on for some key market expansion tips and nuances.
Australia overall is a westernized country with symbiosis stemming from the UK. Two of the most significant cultural differences I have learned as an American are:
The partner marketing industry is still in its early stages in Australia. For those coming from a more mature market such as the UK or US, you will find it feels about five years behind where the industry currently stands in those countries.
As partner marketing grows in popularity, there is a ton of opportunity for thought leadership as well as brand and affiliate strategy when it comes to running a program in the region. Education is key.
Brands often need to be educated that this is a pay for performance channel with great ROI potential, while affiliates tend to need a push to steer away from flat spend models and adapt to a CPA.
Australia is a huge country. So, where do you start when putting boots on the ground? Currently, Sydney is the country’s leading affiliate hub, with Melbourne as a second business hot spot.
Keep in mind that domestic travel is often quick and efficient. A flight from Sydney to Melbourne is only an hour and thirty minutes. Remembering the value of facetime in this culture, those flights are often worth it to build relationships across cities with different partners in the space!
As the partner marketing space grows in popularity in APAC, you will not regret picking Australia as your regional hub. The industry here is continually evolving, with new affiliates, platforms, and marketers entering the space on what seems like a weekly basis!
The talent is incredibly hardworking, creative, and collaborative as everyone works to educate brands on the value of the pay for performance channel. With the rapid growth and success in the industry, I have seen over my 18 months here, I can confidently say it is only a matter of time before partner marketing becomes a must-have in business across the Asia Pacific region.
Learn about our collaborative, customized and consultative approach to affiliate program management around the globe: https://www.accelerationpartners.com/services-global.
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This article was originally featured on PerformanceIn.
Author: Kristine Lee