A New Era for Affiliates: How Influencers Are Reshaping Affiliate Marketing

The affiliate marketing industry has traditionally been led by coupon sites, loyalty programs, and content publishers. However, a new powerhouse is emerging: influencers. With the influencer marketing industry projected to reach $31.2 billion by 2027, creators are becoming essential to outcome-based marketing by combining content creation with direct revenue generation.

This shift is already evident in major ecommerce events. On Cyber Monday 2024, influencers and social-first affiliate marketers accounted for 20% of total U.S. ecommerce revenue. As social commerce continues to expand, brands are reevaluating traditional affiliate strategies to more strategically incorporate influencers. Many brands are increasing their influencer marketing budgets, with some allocating up to 30% of their overall marketing spend to creator-led partnerships.

However, despite their shared focus on conversions, influencer and affiliate marketing have historically been seen as separate strategies. Navigating this disconnect is now a priority for brands to maximize return on investment (ROI). With advancements in AI, the rise of micro-influencers, and shifts in consumer behavior, influencer-driven affiliate marketing is poised to dominate the performance marketing landscape.

The distinction between influencer marketing and affiliate marketing is becoming increasingly blurred, allowing brands to leverage both strategies simultaneously. While influencer campaigns typically focus on enhancing brand awareness, affiliate influencers provide a more performance-driven and scalable solution. This approach is particularly beneficial for brands with limited budgets, product-centric objectives, or a need for a measurable ROI. Integrated tracking tech and more sophisticated partner platforms are unlocking the ability to measure and attribute influencer impact in the same way as affiliates. As more advancements emerge and evolve rapidly, brands are beginning to recognize that partnerships with affiliate influencers can effectively bridge the gap between traditional influencer marketing and affiliate marketing, driving both awareness and measurable sales.

From the creator’s perspective, affiliate compensation has become increasingly appealing. Many creators and their agents are now more receptive to affiliate deals, viewing them as viable income streams, especially given the lower barriers to entry and reduced reliance on one-time flat-fee sponsorships. Influencers are also recognizing that affiliate data helps validate their value and strengthens their negotiating power. This shift is driven by a combination of creators adopting affiliate models, advancements in technology, and growing pressure on brands to deliver a measurable ROI. As more creators adopt this blended model, brands gain the confidence to scale their spending beyond one-off sponsorships and invest in always-on programs. 

Rather than organizing influencer campaigns separately from affiliate programs, brands should instead merge the two into a cohesive strategy where each serves a dedicated role. In practice, this means that social creators are not only brand storytellers but also performance drivers, often engaged as affiliate partners with trackable links or codes. PMG’s affiliate practice has recognized that the channel is already strong, delivering, on average, 16% of ecommerce sales. Meanwhile, the influencer market has tripled since 2019. Merging these two strategies unlocks the strengths of both. Together, they can efficiently turn awareness into action with the fusion of influencer-driven trust and affiliate-accelerated conversions.

By integrating creators into an affiliate program, it ensures that sponsored content comes across as authentic and aligns with the brand’s values. This remains a critical factor, since genuine endorsements foster greater trust and loyalty among consumers. The result is a “flipped funnel” strategy, where influencers contribute at every stage from awareness to conversion. 

PMG has found this approach to be highly effective; for instance, an early test for a brand delivered an 8x return on ad spend (ROAS) and helped generate over 100,000 clicks, ultimately becoming a leading source of traffic within their affiliate program. Industry research shows that this kind of integrated influencer-affiliate approach can be especially powerful. Brands that combine the two channels see, on average, 46% higher affiliate sales, and in the beauty sector, that lift can reach as high as +178%.

Influencers Are Outpacing Traditional Affiliates

Creators are quickly becoming a force in driving online sales, outperforming traditional affiliate sites, such as coupon or loyalty programs. Integrating creators into an affiliate program not only feels more authentic and value-aligned, but it can also drive demand on par with traditional promotions, without the same margin impact or the perception of aggressive sales tactics. Sixty-nine percent of consumers trust influencer recommendations over brand-produced content, and 65% are more likely to purchase when a trusted creator recommends a product. The growth of creators and creator-driven ecommerce not only results in higher engagement and conversion rates but also fosters stronger brand affinity among consumers.

Micro-Influencers Re-Define Brand Authenticity

Micro-influencers, known for their smaller but highly engaged followings, are proving more effective in driving conversions and fostering consumer trust. Their authenticity and niche expertise allow brands to connect with audiences on a deeper level, making them a valuable asset in affiliate strategies. Research shows that micro-influencers generate higher engagement rates compared to those with larger followings and traditional celebrity endorsements. So too are micro influencers allies in affiliate marketing. Unlike mega-influencers or celebrities, their strength lies in their relatability and subject matter expertise, which leads to greater trust and engagement from their audience. Their recommendations come across as genuine, driving not only immediate action but also long-term brand loyalty.

Innovations in AI Streamline Influencer Efforts

AI is transforming influencer marketing, making it more data-driven and performance-focused. AI-powered analytics tools help brands identify optimal partnerships, predict the success of campaigns, and personalize content strategies. These innovations enable more precise targeting and a higher ROI, ensuring that influencer campaigns are more effective and scalable. Platforms like ShopMy and LTK have both implemented AI-driven tools focused on talent recommendation beyond subjective aesthetics. 

For example, ShopMy’s machine-learning algorithm identifies creators similar to a brand’s top performers by analyzing data, yielding tailored influencer recommendations that align with the brand’s goals. On the LTK front, they’ve developed an in-house system, Match.AI, that analyzes insights from product categories to engagement and sales impact, resulting in data-informed recommendations for creators to then maximize campaign performance for brands. By harnessing the power of AI and machine learning, creator partnerships can ultimately be positioned at the forefront of innovation in the affiliate landscape.

As brands continue to prioritize measurable outcomes, affiliate marketing remains a proven channel for capturing demand and delivering consistent, trackable ROI. Unlike traditional influencer campaigns that often focus on upper-funnel metrics, affiliate partnerships allow for clear attribution tied to clicks, conversions, and revenue. This performance-driven foundation makes it easier to justify spend and scale efforts with confidence. When layered with influencer content, affiliate programs become not just a conversion engine, but a full-funnel strategy with real revenue impact.

Brands partnering with PMG can integrate their affiliate creator data into Alli, our proprietary marketing technology platform, which provides seamless, full-funnel performance insights—from influencer engagement to final conversion. By repositioning affiliate marketing beyond just coupons and discounts to include content-rich influencer partnerships, brands can reach new customers, drive engagement, and successfully deliver on their ROI goals.