Podcast Summary: Always Be Testing Episode #90

Title: Affiliate Marketing: New Technologies & Shifting Trends
Host: Ty DeGrange
Guest: Tricia Meyer, Executive Director, Performance Marketing Association (PMA)
Release Date: June 23, 2025

Introduction

In Episode #90 of the Always Be Testing podcast, host Ty DeGrange welcomes back Tricia Meyer, the Executive Director of the Performance Marketing Association (PMA). Known for her insightful contributions to the affiliate marketing community, Tricia joins Ty to unveil and discuss the findings of PMA's latest industry-wide survey. This episode delves deep into the evolving landscape of affiliate marketing, highlighting new technologies, shifting trends, and the overall growth trajectory of the sector.

About Tricia Meyer and the PMA

Tricia Meyer, a seasoned leader in performance marketing, has been at the helm of the PMA for nearly a decade. Her expertise and dedication have been instrumental in shaping the affiliate marketing industry. As Ty mentions, "Tricia is council and head of the PMA for a number of years, right?" (01:22), underscoring her pivotal role within the organization.

Overview of the Survey

The core focus of this episode revolves around PMA's latest survey, the third of its kind, conducted in collaboration with London Research. Tricia emphasizes the comprehensive nature of the study, stating, "We're looking at eight different networks, 53 publishers, over 20,000 brands" (02:09). This extensive data collection aims to establish baseline metrics for the U.S. affiliate marketing industry, assessing its size, growth rates, vertical performance, and future projections.

Key Findings

a. Growth in Affiliate Marketing

One of the standout revelations from the survey is the remarkable growth of affiliate marketing. Tricia shares, "This time we were at $13.63 billion in ad spend a year. And that's huge for us. That is a 14.42% compound annual growth rate since the last study" (05:29). Notably, this growth rate almost doubles that of the overall U.S. e-commerce sector, positioning affiliate marketing as a rapidly expanding force within the digital marketplace.

b. Expansion into New Verticals

Traditionally dominated by retail sectors like department stores and health and beauty, affiliate marketing is now making significant inroads into industries such as finance and telecommunications. Tricia notes, "We're seeing growth in the financial sector and the telecom sector... other types of industries are finding out a way to utilize affiliate marketing as much if not better than what all of the retailers have traditionally been doing it" (07:25). This diversification signifies the versatile applicability of affiliate strategies across varied business models.

c. Shifts in Publisher Strategies

On the publisher front, while cashback and coupon sites continue to reign supreme, there's a noticeable shift in their market share. Tricia explains, "We did see coupon sites in general dip percentage wise" (07:25). This doesn't indicate a reduction in their overall revenue but rather a redistribution of market share towards emerging platforms and technologies.

d. Impact of Technology Innovations

The affiliate marketing landscape is being reshaped by technological advancements. Notably, the rise of card-linked offers and "buy now, pay later" (BNPL) options are altering how consumers interact with affiliate platforms. Tricia highlights, "We're hearing a lot about card linked offers in this last nine to 12 months... we're also seeing buy now, pay later increased" (10:05). These innovations are not only enhancing user experiences but also providing publishers with new avenues for revenue generation.

Publisher Sentiment

A unique addition to this survey was the incorporation of publisher sentiment towards industry changes, particularly concerning Google's evolving algorithms and AI integrations. Tricia shares, "The vast majority are very worried about the Google changes" (13:52). Despite these concerns, there's a silver lining—publishers remain optimistic about the industry's future. "The vast majority of affiliates are worried, but... they're all optimistic about the future of the industry and about their part in the industry" (14:20). This dual sentiment reflects a community that is both aware of challenges and confident in its resilience and adaptability.

Challenges and Optimism in Affiliate Marketing

While the survey paints a predominantly positive picture of growth and innovation, it also touches upon challenges such as the slight decrease in return on ad spend (ROAS). Tricia mentions, "The return on ad spend fell a little bit and it was an average of 12 to 1 in our last two studies and this time it fell to 11 to 1" (15:43). However, this dip is contextualized within the broader growth, suggesting a shift towards more valuable, long-term customer engagements despite the marginal change in immediate ROAS. Additionally, the increasing costs of quality media are acknowledged, yet the overall optimism prevails as the industry continually adapts to new marketing dynamics.

Conclusion and Access to the Study

As the conversation wraps up, Ty emphasizes the significance of the study's findings as a testament to the affiliate marketing industry's vitality. He encourages listeners to engage with the PMA's ongoing work: "You come to the site, put in your email address and get the copy... it's free for anybody, members and non members to download" (21:24). Tricia echoes this call to action, highlighting the value of collective participation in future studies to further refine and understand the industry's trajectory.

Notable Quotes

• Tricia Meyer (02:09): "We're looking at eight different networks, 53 publishers, over 20,000 brands... establishing some baseline numbers where we can talk about how big is affiliate marketing in the United States."

• Tricia Meyer (05:29): "This time we were at $13.63 billion in ad spend a year. And that's huge for us. That is a 14.42% compound annual growth rate since the last study."

• Tricia Meyer (07:25): "We're seeing growth in the financial sector and the telecom sector... other types of industries are finding out a way to utilize affiliate marketing as much if not better than what all of the retailers have traditionally been doing it."

• Tricia Meyer (10:05): "...we're hearing a lot about card linked offers in this last nine to 12 months in particular... buy now, pay later increase there."

• Tricia Meyer (13:52): "The vast majority are very worried about the Google changes... but... they're all optimistic about the future of the industry and about their part in the industry."

Accessing the Study

Listeners interested in delving deeper into the survey results can access the full report by visiting the PMA website at thepma.org. The report is available for free download and is packed with detailed graphs, data analyses, and comprehensive insights into the current state and future prospects of affiliate marketing.

Stay Connected: For more insights and updates on growth, performance marketing, customer acquisition, paid media, and affiliate marketing, subscribe to the Always Be Testing podcast and follow the PMA's latest publications.