Brands are doubling down on affiliate marketing amid rising costs across other channels, with influencers taking an increasing share of budgets.

Almost three-quarters (74%) of brands have increased their investment in affiliate marketing, according to impact.com’s The State of Affiliate Marketing 2025 report.

The results justify the investment with 71% finding the channel more cost effective and two-thirds (66%) reporting stronger return on adspend (ROAS).

Around 73% reported increased revenue from affiliate programmes in the past year, with three-quarters (74%) of brands saying they generate between 11 to 30% of their revenue from the channel.

The study, which polled more than 800 marketers across eight markets, found a fifth (20%) of brands are allocating between 31 to 50% of their marketing budget to affiliates and 6% are spending more than 50%.

A further 30% of brands allocate between 10 to 20% of their budgets to affiliate marketing; while for 38% it is between 21 to 30%.

With global adspend hitting $1trn in 2024, traditional advertising channels have become increasingly saturated and competitive, brands are shifting away from transaction partnerships and towards more strategic partnerships.

Influencer partnerships key for affiliates

Social media and influencer marketing has become a bigger priority for affiliates with 36% using this channel in their mix, mostly for brand discovery and awareness.

And it is paying off as 28% of those surveyed said their collaborations with influencers had improved brand awareness and reach; while 27% reported higher engagement with brand content.

More than a quarter (27%) also said it had increased sales and revenue; and a further 25% reported a high return on investment (ROI) than other marketing channels.

Influencer marketing also has one of the largest projected growth among affiliates with more than half (59%) planning to dedicate a quarter or more of their affiliate budget to a partnership in this remit in the next year.

Of those, 18% are looking to allocate more than half of their affiliate budget to an influencer partnership. This equates to a 14 percentage point net change in partner type collaboration.

However, the uptake of influencer partnerships by affiliates varies by region. The UK has the highest rate of adoption at 46%, with a 26 percentage point net growth projected; while Singapore has the highest expected net growth rate of all markets studied at 37 percentage points.

France and Italy were among the markets with the lowest adoption rate at 26% and 16%, respectively, with no significant growth expected.

Affiliate programmes offer a ‘scaleable ecosystem’

High performing affiliate programmes were found to leverage a diverse range of partners – between three to four on average – to enhance their customer engagement.

One in five brands see developing a more integrated, omnichannel strategy as a top opportunity for programme growth.

Alongside influencer marketing, other channels brands are investing in include search and media arbitrage (40%); loyalty and rewards (38%); content and reviews (34%); commerce (33%); and email (28%).

Anthony Clements, UK Country Manager at impact.com, said: “Brands are increasingly directing budgets toward channels that deliver clear, measurable impact. Affiliate and partnership marketing have emerged as strategic growth levers – driving full-funnel results, boosting revenue efficiency, and connecting brands with precisely targeted audiences.

“As the cost of other marketing channels continues to rise, affiliate programs represent not just a cost-effective alternative, but a scalable ecosystem that delivers long-term value and sustainable growth.”