Affiliate Marketing in Singapore

In recent times, we’ve witnessed a rapid ascent of consumer spending. The rise of digital consumerism globally, but particularly in our region, has blossomed a range of innovative marketing techniques—including performance-based approaches such as affiliate marketing. Singapore has a reputation for being at the forefront of this digital evolution. With the ecosystem to affect opportunities and access new markets across the whole continent, we are at the very heart of Asian business success. For businesses and marketers alike, affiliate marketing can provide a fantastic opportunity to access the highly diverse Southeast Asian markets.

Affiliate marketing currently accounts for up to 30% of online revenue generation. Yet, while affiliate marketing has become a staple approach to accessing new and varied audiences in many markets, strategies must be tailored to the individuality of local proclivities in order to realise true success. By leveraging the unique qualities of our regional market, you can tap into impressive increases in sales and assure steady revenue growth.

When we consider that advertising spend in Asia is expected to bypass 275 billion USD in 2020, within which Singapore’s ecommerce marketing is slated to grow 48% to 7.4 billion USD by 2022, it is of little wonder why marketers in Singapore are keen to exploit the power affiliate marketing offers.

So, what makes Asia different from the Western world in terms of affiliate marketing? If we first visit the traditional version commonly applied in the West, we can easily see a big difference. Initially, affiliate marketing was about volume, volume, volume. The focus was on securing as many publishers as possible in order to promote the product or service, irrespective of the quality of output or brand suitability. As methods developed, the next iteration involved focusing on identifying the best-performing affiliates, which has certainly been fruitful in other markets, but still doesn’t hit the mark in Asia.

Here, we consume differently. We spend most of our time—and money—online via mobile devices. In fact, in-app purchases now account for nearly two-thirds of ecommerce purchases in the region. Compares this with the West where they’re only now reaching retail ecommerce sales of 39.6%—one-quarter of which were completed in-app. As such, the more conventional browser-based tracking model is simply not nearly as effective here in Asia.

In Asian markets, the stakes are high—we simply cannot afford the levels of inefficiency acceptable in the West. Our focus must be sharpened towards what works for us. This means, more generally, directing attention to mobile app marketing, and specifically to the non-monetary aspects of the app, such as customer experience and localised branding. By concentrating on superior functionality and user experience, we overcome the shortcomings of the standard, Western model. Fundamentally, the emphasis here is about identifying what the customer will find most useful rather than what will generate the most traffic.

When it comes to selecting affiliate partners, the option is to either screen every single applicant (at huge time and financial cost) or to skip the screening process entirely, which means opening yourself up to substantial risk of mobile ad fraud (especially rampant here with the high app usage). In essence, a little of column A and a little of column B makes the most sense. Adopting a strategy of screening once recruitment is established means you only exert the effort of inspecting the affiliates who have agreed to work with you, rather than every single one you approach.

Another way in which our market differs is in the effect influencers have on consumer activity. In Asia, it is commonly the case that the lines between social media and ecommerce are blurred. Audiences are generally more responsive to real human opinion, to those who provide advice, instructions, and feedback to their followers. This results in key opinion leaders in the region often having a greater impact than more traditional affiliate marketing strategies.

It is for these reasons that we must take a more localised approach to affiliate marketing channels. Working with the unique intricacies of the Asian market, and in consideration of the needs and expectations of our indigenous clientele, we can define our own affiliate model. By exploring what works here, and being willing to explore and innovate, we can ensure affiliate marketing works for us.