New Study Shows the Majority of Publishers Are Using Commerce Content (87%) and 81% Are Seeing More Return on Investments Outside of Amazon

Rhea-AI Summary

Taboola (Nasdaq: TBLA) and Digiday have revealed insights from a survey indicating a surge in affiliate marketing's significance for publishers. Key findings highlight that 49% of respondents observed revenue growth in this channel from 2020-2022. Furthermore, 74% of publishers now regard affiliate marketing as a more vital revenue source. In 2022, 34% reported up to 20% of revenue from affiliate efforts, projecting a rise to 37% in 2023. The report also underscores a shift towards hybrid strategies, with 65% partnering with third-party technology vendors, capitalizing on a growing trend away from Amazon commissions.

Positive

• 49% of surveyed publishers reported growth in affiliate marketing revenue from 2020-2022.
• 74% believe affiliate marketing has become a more crucial revenue source.
• 34% of publishers earned up to 20% of revenue from affiliate marketing in 2022, with a projected increase to 37% in 2023.
• 65% of publishers are collaborating with third-party technology vendors to enhance affiliate strategies.

Negative

• None.

Digiday and Taboola Survey Shows Publishers Grew Affiliate Marketing As a Significant Revenue Source, As Native Advertising and Affiliate Marketing Make Up the Majority of Revenue

NEW YORK, Dec. 05, 2022 (GLOBE NEWSWIRE) -- Taboola (Nasdaq: TBLA), a global leader in powering recommendations for the open web, helping people discover things they may like, today announced the results of an independent survey with Digiday, a digital media company exploring technology’s disruption within the global media and marketing industries.

Industry forecasts predict the affiliate marketing industry could reach $15.7 billion by 2024 and indicate that searches for “affiliate marketing” increased by nearly 30% throughout 2021.

The survey measured how publishers approached affiliate marketing pre-pandemic (in 2019) and how their tactics shifted to meet audiences and markets in 2022. Key findings include:

1. The role of affiliate marketing has grown as a revenue source. Nearly half of respondents (49%) indicated the performance of their company’s affiliate marketing channel grew during the e-commerce surge from 2020–2022. Additionally, in 2022, among the nearly three-fourths of respondents who are engaging with affiliate programs, 74% indicated affiliate marketing has become more important regarding revenue than it was in the past.
2. Commerce content and native advertising are seeing an increase in dedicated publisher budgets. When asked about the specific channels that publishers use to drive revenue, the most respondents said commerce content is a contributor (87%) and the next most popular was native advertising (51%). Also, the majority of respondents are seeing up to 20% of their revenue come from affiliate marketing efforts in 2022 (34%) and are expecting the same for 2023 (37%).
3. Publishers are diversifying their strategies by establishing a hybrid setup of in-house experts and third-party technology providers. As publishers work toward improving their affiliate marketing strategies for 2023 and beyond, the majority (65%) are partnering with third-party technology vendors or other partners specializing in affiliate marketing, with 59% working with a hybrid setup of in-house experts and third-party partners. Diversification is on the agenda too, with publishers seeing more growth from non-Amazon commissions than Amazon commissions, with 81% reporting an increase in non-Amazon commissions over the past six months.
   

About Taboola

Taboola powers recommendations for the open web, helping people discover things they may like.

The company’s platform, powered by artificial intelligence, is used by digital properties, including websites, devices and mobile apps, to drive monetization and user engagement. Taboola has long-term partnerships with some of the top digital properties in the world, including CNBC, BBC, NBC News, Business Insider, The Independent and El Mundo.

More than 15,000 advertisers use Taboola to reach over 500 million daily active users in a brand-safe environment. Following the acquisition of Connexity in 2021, Taboola is a leader in powering e-commerce recommendations, driving more than 1 million monthly transactions. Leading brands including Walmart, Macy’s, Wayfair, Skechers and eBay are among key customers.

Learn more at www.taboola.com and follow @taboola on Twitter.

Disclaimer – Forward-Looking Statements

Taboola (the “Company”) may, in this communication, make certain statements that are not historical facts and relate to analysis or other information which are based on forecasts or future or results. Examples of such forward-looking statements include, but are not limited to, statements regarding future prospects, product development and business strategies. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions are intended to identify such forward-looking statements but are not the exclusive means for identifying such statements. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and there are risks that the predictions, forecasts, projections and other forward-looking statements will not be achieved. You should understand that a number of factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements, including the risks set forth under “Risk Factors” in our Registration Statements on Form F-1 and F-4 and our other SEC filings. The Company cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. The Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based.

Press Contact:
Dave Struzzi
dave.s@taboola.com

FAQ

What did the Taboola and Digiday survey reveal about affiliate marketing for TBLA?

The survey found that 49% of publishers reported growth in affiliate marketing revenue, with 74% stating it is a more vital source of revenue than before.

What percentage of revenue did publishers report from affiliate marketing efforts in 2022?

In 2022, 34% of publishers reported earning up to 20% of their revenue from affiliate marketing.

How is Taboola (TBLA) leveraging affiliate marketing trends?

Taboola is adapting to increasing affiliate marketing trends by partnering with third-party vendors, with 65% of publishers opting for such collaborations.

What trend was observed regarding Amazon commissions in the affiliate marketing space?

81% of publishers reported an increase in non-Amazon commissions over the past six months, indicating a shift away from Amazon.

What are the expectations for affiliate marketing revenue in 2023 for TBLA?

Publishers expect the share of revenue from affiliate marketing to rise from 34% in 2022 to 37% in 2023.