3 ways Indonesian brands can benefit from affiliate marketing in 2023

Affiliate marketing is more than just a new trend or niche marketing channel. With the proper focus, tools, and strategy, affiliate partnerships will set you up for success. Jump onboard and enjoy the benefits of this revenue-generating channel.

Ranto Rajagukguk, Guest Blogger
Ranto Rajagukguk
Guest Blogger
Read time: 4 mins

A reported 96 percent of consumers in Indonesia research relevant information before purchasing. People want to feel good about the brands and products they support but often feel overwhelmed by the number of options and wary of blatant advertising. 

Affiliate marketing allows brands to authentically connect with new audiences and stand out in an online marketplace crowded with advertising noise. 

Affiliate partnerships open up a performance-based marketing channel, providing brands with a more budget-friendly and scaleable way to grow revenue. These partnerships benefit everyone: brands find their target audience, partners earn commissions, and shoppers discover products matching their style, interests, and values. 

Ad blockers and rising consumer mistrust in traditional advertising force companies to adapt and evolve. It’s time to reevaluate your marketing strategies and add affiliate partnerships to the mix.

Three affiliate marketing benefits for brands in Indonesia

Currently, over 80 percent of brands around the world use affiliate programs. As affiliate partners recommend products and brands through posts, articles, or videos, brands track each view or purchase—providing feedback and commission payments for each partner. With a purpose-built management platform like impact.com, partners and brands easily collaborate, establish lasting connections, and boost their profits. 

International beauty brand Sephora recently expanded past the limits of traditional affiliates and diversified its partnership program. The team connected with influencers and creators across a wide range of social groups and demographics—tripling their revenue after expanding partnerships with impact.com.

These partners have relationships with their audiences, in-depth experience, and knowledge about their niche interests. As a powerful channel, affiliate marketing offers the following benefits for brands across Indonesia: 

  • Builds audience trust
  • Creates flexible pricing models
  • Improves performance metrics 

How affiliate marketing builds audience trust

As many as 75 percent of consumers don’t trust advertisements but value recommendations from friends and family (90 percent) and customer reviews (70 percent) in their purchase decision. 

Based on recent data, people also want more transparency and accountability from brands. Interest in cruelty-free products has risen by 65 percent in Indonesia. Meanwhile, 33 percent more shoppers look for brands focusing on sustainable items and manufacturing. 

Brands have the saving grace of affiliate marketing to increase trust and reach. Consumers and niche audiences gravitate toward affiliate partners—coupon and deal sites, bloggers, social media influencers, review sites, email marketers, and more—as reliable, unbiased sources of information. 

Tapping into the influential power of affiliate partners highlights a brand’s style and values and reaches the consumers at every buyer journey stage, from discovery to evaluation to purchase. 

How brands can create flexible pricing models

Partnerships aren’t locked into one specific payment model. Brands and affiliates now have the freedom to create flexible contracts and commission agreements. Some content creators might receive payments for each click, certain SKUs or promo codes, monthly metrics, or other options. Partnership management platforms, like impact.com, introduce innovative tools to tailor mutually-beneficial contracts and engage with partners along the different stages of the partnership life cycle.

Zalora (the leading fashion and lifestyle retailer in Southeast Asia) benefitted from these flexible pricing options. The team used impact.com’s traffic attribution logic tools, payment visualizations, and customizable contracts to cut down on overpaying and unnecessary spending. After finely tuning commission payments for each partnership, Zalora saw a 50 percent increase in ROI (return on investment). 

These payment innovations open the world of partnerships to more brands and potential partners—rather than restricting brands to a single payment model. 

How affiliate marketing improves performance metrics

Detailed performance tracking plays a key role in the growth and optimization of your affiliate program. Affiliate publishers, like cashback sites, bloggers, and social media influencers, need actionable feedback on each post and campaign, gathering real-world insights on audience response. This way, brands recognize and focus on top-performing affiliates while each partner knows the best ways to promote and recommend each product. 

Through platforms like impact.com, users access state-of-the-art tracking and reporting tools. Good performance metrics are vital for raising your partnership game, whether you need granular details on each promo code or a big-picture view of conversions and clicks. 

Getting a headstart with affiliate marketing

Affiliate marketing empowers brands to adjust and adapt to current and future industry changes, relying on established relationships with a diverse mix of affiliate partners to stay ahead. For online researchers and shoppers in Indonesia, authenticity remains a key issue for at least 31 percent of people. The honest recommendations of respected content creators will help you find a foothold with new audiences and prove your values to potential buyers. 

As online retail keeps changing alongside shifting consumer habits and values, traditional advertising strategies simply cannot keep up. You can stay ahead of the curve by switching the focus to affiliate marketing and building a profitable partnership network on impact.com’s platform. 

Check out Marketeers for the Bahasa version of this blog. Learn more about impact.com’s partnership platform and kick your affiliate marketing campaign into overdrive today! 

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