Affiliate marketing has emerged as a cornerstone of modern digital marketing strategies, offering brands a measurable and cost-effective approach to engaging customers. As the global affiliate marketing industry continues to evolve, its significance is hard to overlook, with the U.S. market alone projected to hit $12 billion by 2025, according to Statista. This dynamic space is reshaping how brands connect with consumers, moving beyond traditional advertising to focus on performance-driven outcomes.
In conversation with BrandWagon Online, Neha Kulwal, MD, APAC and India, Mitgo, explains how Admitad is navigating the shift, particularly the growing prominence of micro and nano influencers. While Admitad has faced challenges, including a decline in revenue and profit, the company is focused on leveraging emerging opportunities in affiliate marketing and content commerce to drive growth.
Admitad is a global affiliate marketing platform that connects advertisers with publishers to drive performance-based marketing through cost-per-action models. Admitad’s total income decreased by 31.85%, from Rs 113.6 crore in 2022-23 to Rs 77.4 crore in 2023-24, with profit also falling by 55.27%, according to data accessed by Tofler. (Edited Excerpts)
How has the journey of affiliate marketing evolved and what role has Admitad played in shaping it?
Affiliate marketing has come a long way since I started in 2015. Back then, challenges like cookie stuffing, lack of transparency, and limited understanding of affiliate networks were common. Clients loved the idea of paying only for sales, but the model needed refinement. That’s when Admitad entered the scene. Partnering with its German founders, I launched it in India, focusing on transparency, innovation, and technology. We created a platform where advertisers could partner with publishers, track campaigns, and achieve ROI-driven results.
Over time, coupon sites, cashback platforms, and influencers transformed the landscape. During the pandemic, influencer marketing surged as creators reviewed products and shared affiliate links, blending content and commerce. Today, affiliate marketing drives results across the entire funnel—from awareness via influencers and bloggers to decision-making through reviews and comparisons, and finally, transactions with offers and coupons. It’s all about partnerships and measurable ROI, making it a vital channel for brands.
Admitad’s total income dropped by 31.85%, from 113.6 crore in 2022-23 to 77.4 crore in 2023-24, with profits also falling by 55.27%, as per data from Tofler. What do you think were the main factors behind this sharp decline and what strategies do you have in place to address this challenge in the upcoming financial year?
Our journey began in 2000 with steady revenue growth until 2020-21. However, as consumer behaviour normalised post-pandemic, the anticipated exponential growth in online shopping slowed, requiring longer timelines to unlock its full potential. Global brands such as Shein experienced a similar shift. Increased competition and innovation in performance marketing also affected advertising spend. To adapt, we expanded into markets such as Indonesia with local offices, while revenue in India remained stable. Although growth slowed from 30-40% annually (2015-2020) to 5-10%, a trend seen across the advertising industry, we are focused on innovation.
For example, we launched Takefluence, an influencer platform that combines user-generated content with brand ambassadorship. It targets micro and nano influencers who, despite smaller followings, deliver higher ROI through authentic, relatable endorsements. As influencer marketing evolves, we are committed to leveraging this shift to drive future growth.
What has been the primary driver of Admitad’s revenue growth over the past year?
The primary driver of Admitad’s revenue growth has been the e-commerce boom, fueled by increased internet penetration, especially with the widespread adoption of 4G and 5G in India. Digital payments, especially platforms like UPI, have played a crucial role in facilitating transactions. The ease of online ordering has made shopping more accessible, and with more consumers spending time online, buying behaviour has shifted significantly. For example, Indian Railways offering high-speed Wi-Fi on long-distance trains has further contributed to content consumption and online activity, increasing digital engagement. All of these factors combined have propelled the digital growth we see today, especially in India’s rapidly evolving infrastructure, which supports the country’s expanding digital ecosystem—from AI to innovative payment solutions.
How has Admitad optimised its cost structure to maximise profitability in such a competitive market?
Over the past two years, every company has been focused on optimisation. While we initially expected much higher growth, we saw a period of normalisation. To manage this, we set clear objectives and key results for every new business unit, giving each one time to prove itself. We then optimise resources, scaling back in areas where growth isn’t evident. For example, we’ve reduced spending on content creation tasks that can now be automated. We also reassessed our operations—where manual data entry was being done by staff, we automated it, and we leveraged tools like GPT for generating code, reducing our technical resource needs. Additionally, we’ve streamlined advertising and servicing functions by automating tasks that were previously done manually, such as content creation and presentations. Instead of cutting resources completely, we’ve improved efficiency, enabling individuals to complete tasks more quickly, and helping us reduce costs and reliance on support functions.
How is AI integrated into your company’s operations, and what role does it play in driving efficiency and innovation?
We don’t store user data, adhering to advertising and GDPR guidelines, but we do gather insights such as order values, products being bought, and the types of publishers involved. For example, comparison sites typically drive most transactions in the electronics category, while influencers tend to generate sales in fashion. Using AI, we’ve created cohorts that help identify which publishers will be most effective for specific brands. AI also plays a key role in curating offers and deals, automating the process of picking and sharing them. Additionally, AI assists with social media strategy and content creation, making these tasks much easier.
What trends do you foresee shaping the affiliate marketing space in the coming years, and how is your company positioning itself to stay ahead?
We’re focusing on innovation and leveraging AI to enhance our affiliate marketing platform. For example, we’ve developed bots that automatically identify and share deals across publishers, streamlining the process. We’ve also partnered with platforms like Jio to extend our reach to rural markets, especially with events like IPL offering unique opportunities for customer engagement. We’re enabling smaller communities, like women-led WhatsApp groups in rural areas, to participate in affiliate marketing. By picking up campaigns and creating content on platforms like Instagram or YouTube, they can earn commissions, helping brands reach new audiences. Transparency is key, so we’ve moved to a SaaS platform where brands can manage their own programs, select partners, and track performance. For publishers, we’ve built tools like link shortening and auto-forwarding to simplify their work and save time.
India is a price-sensitive market, and Admitad is relatively new here. How do you ensure both large brands and smaller publishers get value from your platform?
Partnership marketing, or modern affiliate marketing, has evolved into enabling meaningful collaborations. Admitad empowers various partners—small bloggers, cashback sites like CashKaro, loyalty platforms, or cross-brand promotions. For instance, a fashion brand can team up with an electronics brand for mutual benefits. The core value is transparency, with pre-decided payouts ensuring partners know their ROI upfront. Spending 10% to generate ₹100 in sales provides clear visibility, along with bonus brand awareness at no extra cost.
For smaller brands, this model is a cost-effective alternative to expensive platforms like Facebook and Google. It aids both customer acquisition and retention. Loyalty platforms like Amex Platinum incentivise repeat shopping at partner brands through reward points, helping small brands compete effectively. Affiliate marketing isn’t just about acquisition; it’s also a powerful channel for retention.
Admitad has been expanding its presence globally. Could you share the company’s strategy for scaling operations and entering new markets?
Admitad has been actively expanding its global footprint, starting from its base in Germany. Initially, the company targeted the Indian market in 2015, and by 2020-2021, it began its broader regional expansion. Indonesia was one of the first markets to be launched, and now we have plans to enter Vietnam and the Philippines in the near future.
The company has also made its mark in Latin America, with Brazil and Mexico seeing significant growth. Our office in Brazil is already operational, and we are eyeing other key markets in the region. The MENA (Middle East and North Africa) region was another area where Admitad saw potential, recognising that the region’s tech landscape is around five to eight years behind India. Egypt, Turkey, and Dubai were among the markets that stood out, leading to the establishment of offices there as well. At the heart of this expansion strategy is a dedicated R&D (research and development) and marketing team that carefully assesses new opportunities by evaluating digital presence, market spending potential, and local trends. Once we’ve identified a promising market, the decision to launch follows. This approach has been a key driver in Admitad’s growth across India, Indonesia, Brazil, Mexico, and the MENA region, in addition to its strong presence in the US and European markets.