By Molly Elrington, Retail & Travel Client Partner, Partnership Development Hub, at Awin
In Q1 2025, 70% of Awin’s retail sub-sectors saw a year-on-year decline in their discount partner sales share. The APMA’s latest report points to the same shift, with voucher partner contribution falling across the industry. But this doesn’t mean all discount partners are in decline. In fact, some of those offering more advanced targeting capabilities, such as geo-targeting or audience segmentation, have continued to grow.
The broader trend reflects a deliberate move away from blanket discounting toward more selective, strategic use of these partners. Brands are rethinking their reliance on one-size-fits-all, margin-eroding offers and instead building more balanced, full-funnel programmes that support long-term growth.
The focus is now on building more balanced, full-funnel programmes that support long-term growth. And it’s the affiliate channel’s evolution that’s making this possible. By making better use of the channel’s growing diversity, particularly the rise in upper-funnel partners, brands are better positioned to reach new audiences, drive loyalty and improve margin. Growth in these partnerships, combined with a broader mix at the point of conversion, is prompting teams to refine their affiliate strategies. The aim is to shape the full customer journey through compelling messaging and strategic offers, not just wait for the last click.
Discounts aren’t dead – they’re part of a broader strategy
There is no doubt that discount codes play a huge role in driving sales, they remain a powerful lever for driving urgency and conversions. In fact, despite a year-on-year dip in performance, discount partners were still the top sales driver across Awin’s UK retail network from January-to-May, 2025.
Discounts still drive urgency and conversions – when they’re used with purpose. In the Awin-Win podcast, we heard how brands like Boohoo and Sky are moving beyond blanket offers in favour of smarter, more strategic promotions. That means well-timed, targeted deals and discounts that reach the right audience without eroding long-term brand value.
The shift now is toward more strategic use: reserving discounts for specific objectives, and pairing them with partners that build long-term loyalty. In this context, affiliate marketing becomes more than a last-minute conversion tool. It becomes a margin-friendly way to drive sustained growth, reach new audiences, and deepen customer engagement.
This is where the opportunity lies. By using a broader mix of affiliate partners and tools, brands can deliver value across the entire journey – not just at the point of sale.
Tools for growth: affiliate strategies that deliver value beyond the discount
With brands moving beyond always-on discounting, affiliate strategies are evolving to support smarter, margin-conscious growth. In 2024, 59% of network revenue came from non-incentive partners, while traditional discount and cashback partners saw a 16% year-on-year decline. That shift shows us where the opportunity lies – in new and emerging partner types that deliver performance, but without relying on constant price cuts. Let’s dive into these new performance-power partner types.
Tech partners are playing a bigger role in this shift. From exit-intent tools and onsite search enhancements to AI shopping assistants and remarketing solutions, these partners help improve the customer journey and drive conversion in smarter ways.
Technology partner sales for Awin UK retail clients grew +14% YoY in Q1, outperforming the overall sector growth of +2%. Now really is the time to embrace change and innovation to drive your brand forwards.
Brand partnerships are another powerful way to drive value through affiliate. These collaborations allow brands to reach new, often hard-to-access audiences while elevating awareness and brand perception. These partnerships can take many forms, from co-branded content and curated product bundles to exclusive offers, sampling, and experiential campaigns. The value exchange works both ways: one brand taps into a fresh, often hard-to-reach demographic, while the other enhances its customer experience by introducing relevant, complementary products or services.
CSS Partners (Comparison Shopping Service) offer a similarly value-led approach. By optimising product data to boost visibility, CSS partners help brands attract and convert new customers-without relying on heavy discounting. Even when run alongside Google Shopping campaigns, CSS partners can drive incremental traffic and revenue. In Q1 2025, Awin saw retail sales through CSS partners grow 29% year-on-year, with conversion rates up by nearly 25%.
Discount partners aren’t excluded from these value-driven strategies – but the focus is shifting from blanket offers to more strategic, data-led activity. Instead of pushing generic codes to all customers, brands are now tailoring discounts based on user intent, location, or demographic.
Targeted discounting is proving to be one of the most efficient ways to drive performance without eroding margins. Partners offering geo-targeting or audience-specific discounts (like post-purchase rewards tailored to the product purchased) help ensure that promotions reach the right customers, at the right time.
One example is Currys’ use of Awin’s BrandSwap integration, which delivered contextual post-purchase rewards such as meal kit subscriptions for customers buying cooking appliances. Across the Awin UK retail space, discount partners with targeting capabilities saw a 9% uplift in sales in Q1 2025. It’s a clear sign that smart, strategic discounting isn’t just effective – it’s efficient.
Affiliate isn’t just last click – it’s full funnel
The affiliate channel has long been associated with last-click conversion. But that perception is changing fast. Many brands are now using affiliates to influence every stage of the customer journey – from discovery to purchase and beyond.
Content creators spark interest through authentic storytelling, influencers build trust and relevance with niche communities. Tech partners support the decision-making process through reviews, remarketing or recommendations – each touchpoint adds measurable value.
Robust measurement has always been a core strength of affiliate. So it’s no surprise that upper-funnel partners are now playing a more visible and valuable role in performance strategies. With the ability to track influence across the full journey, brands can reward partners not just for conversions, but for the role they play in discovery, engagement and consideration. With the right data and commissioning tools, affiliate becomes a channel that values the full journey – not just the last click – supporting a more balanced, sustainable approach to growth.
Summary
Affiliate marketing is evolving fast, and discounting is evolving with it. Rather than conditioning buyers to expect constant discounts, brands can build authentic loyalty by focusing on value, engagement, and customer experience by diversifying their partner types, and when discounting, being strategic with their approach . By tapping into the channel’s growing diversity (from content creators and brand partnerships to tech solutions and audience-specific offers) retailers can build full-funnel affiliate strategies that drive sustainable growth.
Want to learn more about discounting? Listen back to the talk this topic with IMRG (link to come).
What eCommerce challenges are you facing? Come find out what affiliate marketing can do for you.
Published 11.06.25
