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India’s affiliate industry is on track to hit $835 mn by 2025: Experts

IAMAI’s India Affiliate Summit saw the participation of eminent dignitaries from the industry.

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Mumbai: The Internet and Mobile Association of India (IAMAI) recently concluded the seventh edition of India Affiliate Summit (IAS) that witnessed over 3000 delegates from across the globe. Over 700 companies and 50 exhibitors participated in the event, held on 25 August.

Some of the crucial topics of discussion at the event were: ‘How to build a multi-million-pound affiliate empire?’, ‘Is performance marketing a win-win deal or has a flip side?’, ‘Growing role of affiliate marketing in fintech domain’, ‘How are influencers changing the affiliate marketing fame?’, ‘Implementing affiliate marketing in mobile gaming’, and ‘GenZ, the social media generation – vital audience for affiliates’.

Speaking about the potential of the Indian affiliate industry, Commission's CEO, Parul Bhargava said, “India’s affiliate industry has tremendous potential of growth and is on track to touch the targeted $835 million by 2025 from around $300 million currently. The Covid-19 pandemic has not affected the affiliate marketing industry; definitely digital and affiliate has grown. Affiliate marketing still contributes about 10 per cent of digital marketing budgets. E-commerce, travel homestays, BFSI, education, D2C, gaming, web services, and health are the top industries contributing to affiliate marketing in India.”

Echoing similar views, GrabOn's founder, Ashok Reddy remarked, “We have just scratched the surface of affiliate marketing in India. The affiliate industry has been growing multi-fold over the years and there is no doubt that there is unprecedented growth ahead.  With new content creators on the block and AI that sees no limits, affiliate is shifting and will continue to shift into the hands of the users. Mobile-first strategy, influencers, and video-based content marketing will see an uptrend for the next few years.”

Optimise, managing director, LD Sharma said that while the sector has the potential to become a billion-dollar industry in the next couple of years, rising fraudulent activities seem to be a major concern. “Fraudulent clicks, cookie stuffing, bad bots, geo-masking, click spamming are some of the challenges for the industry," he said.

Sharma also mentioned that government intervention in the form of regulations and punishments for unethical businesses will help the industry to grow further. Suggesting measures to further this growth he added, “Under the current GST regime affiliate marketers are required to pay 18 per cent GST, however, the same is not applicable in other countries. Revisiting the GST regime for affiliate marketers and setting up a regulatory body would be an impetus for the entire ecosystem.”

The key speakers at the event included Craig Campbell SEO, SEO trainer and consultant, Craig Campbell; Bright Leads Media, founder, Hassan Aanbar; Acceleration Partners, founder and CEO, Robert Glazer; Cashkaro, co-founder, Rohan Bhargava; Ferns N Petals, head - digital marketing, Sai Tota; Max Life Insurance, CVP - e-commerce and digital marketing Aditya Satpute; HDFC Bank, VP and head- digital, content and social media marketing, Jahid Ahmed; Godrej Consumer Products, VP and head – digital, Pankaj Parihar; and Lendinkart, director – marketing, Nijish Nair.

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