The Sydney-based business, which offers marketing solutions across single or multiple channels, says in the past six months more than 20 retailers, such as department store; the Big W, specialist online merchants Kogan and THE ICONIC, and global giants Microsoft, Sony and Marks & Spencer, are among new clients to join its affiliate network.
The surge has even led to a new dgm Melbourne office and the appointment of three senior staff - one of which hails from Rakuten LinkShare in the UK.
Dgm’s general manager, John Matthews, said the network is now delivering more than $10 million in ecommerce sales each month for its clients, and this figure is continuing to rise.
“We are seeing the momentum build for affiliate marketing in Australia as local online retailers learn about the unique benefits of the channel while international retailers are looking to grow their incremental sales through our specialist retail publisher base,” Matthews said.
However, despite the growth, Matthews said Australia is still lagging – for now.
“In the US and UK, 100% of the country’s top 20 multi-channel retailers are operating an affiliate marketing program,” Matthews said.
“Here in Australia only a handful of those businesses are using the channel at the moment. We are expecting much more growth in the next 12 months as more retailers and merchants embrace the cost-per-acquisition model that operates in the affiliate space.”
Dgm, which is celebrating its tenth anniversary this month, has grown its talent in the channel, with three senior appointments. Peter Hammond joins from Shopping.com, where he was head of operations and account management. He will become dgm’s business development manager.
Alexandra Lochhead is joining from the client side and is from a leading UK fashion retailer, and Kertu-Liina Lehismae joins from Rakuten LinkShare in the UK.
Lehismae will be the company’s first Melbourne employee and has been tasked with supporting the growth in new retailers to the affiliate channel in that market.
Matthews added that the Australian affiliate market, historically dominated by the big finance brands, is experiencing a structural shift.
“Growth in online retail spend coupled with greater focus from big brands on how they are using the internet as a sales mechanism means we are seeing big retailers embrace the affiliate channel and we expect to see this growth continue for years to come,” Matthews said.
In August last year A4u covered news that the Digital Performance Group, owners of dgm, acquired Viva9 – a move which is obviously working well given the company’s recent expansion. The two affiliate networks are said to be the first and second largest networks in Australia and the deal was seen as a major step forward in growing and improving the performance marketing industry in the country.