Advantages of Affiliate Marketing

There are two sides to which affiliate marketing is beneficiary Merchants, who employ affiliate marketing as their marketing strategy, and content providers - affiliates, who actually present on their websites merchants' products and services (Hoffman & Novak, 2000). Benefits, that affiliate marketing offers to the merchants, were already discussed in the introduction chapter, thus we will now only focus on content providers' perspective. Affiliate marketing gives content providers new...

Online Advertising

There have been made many definitions of the term Internet advertising. A discussion had been held whether the Internet is another form of traditional advertising or its nature lies more in direct marketing. Over the years, the debate has resulted, according to Zeff, to a compromise Internet advertising is the convergence of traditional advertising and direct response marketing. (Zeff, 1999 12) Chaffey refers to online promotion as traffic building campaigns - a method to increase the audience...

Research Question 2

How can the situations, under which affiliate marketing is efficient for content providers, be characterized The interviewee offers several types of online advertising to the merchants - sending emails with advertising content to his visitors, displaying banner ads and text links at his websites. Only banner ads and text links are used for affiliate marketing. He has two main sources of income from his websites - online advertising and affiliate marketing. He does not consider other sources of...

References

Cited 2007-10-01. (Available online at Barnes & Noble.com Affiliate Program. Barnes & Noble. c2007. Cited 2007-09-12. (Available online at BENWAY, J.P., LANE, D.M. Banner Blindness Web Searchers Often Miss Obvious Links. Internetworking, Dec 1998. (Available online at BRUNER, R.E., The Decade in Online Advertising 1994-2004. DoubleClick. c2005. Cited 2007-09-16. (Available online at CHAFFEY, D. Internet Marketing Strategy, Implementation and Practice. 2nd...

Affiliate marketing program types

Content providers share similar point of view on one-to-one and one-to-many affiliate programs and on affiliate networks. Their perceptions are summarized in the following table Table 21 - Cross-case analysis Advantages and disadvantages of respective affiliate marketing program types Table 21 - Cross-case analysis Advantages and disadvantages of respective affiliate marketing program types Low commission Lower risk of deception Content providers value one-to-one programs, because these are...

Advertising via the

Banners, buttons, interstitials and other common advertising media are referred to as Web ads. According to Janoschka, web ad is a rectangular area, located on a page or in between pages, which displays text and graphics based advertising. When user clicks on a web ad, he she gets redirected to a linked target website. (Janoschka, 2004 51) Banners are the oldest form of advertising on the Internet. Banners have the advantage to blend text and multimedia, such as graphics, animation or sound....

Research question 3

How do content providers select affiliate marketing programs they intend to participate in Affiliate marketing programs are selected by the content provider in two different ways. He either already has a website, where he uses affiliate marketing, or he creates a website to leverage a specific affiliate program. In both cases he goes through a process that is applicable to models that De Boer et al. (2001) and Lee (2001) proposed (models were already discussed in the literature overview). Table...

Affiliate marketing

As was already described in the introduction chapter, affiliate marketing is an agreement between a merchant and content providers to promote merchants' products or services at their websites. Content providers get paid only if the visitors from their website execute a specified action (Chatterjee, 2002). Thus, in affiliate marketing, the task of content providers is not only to deliver the advertisement, but also to persuade users to convert to customers. Affiliate marketing is therefore...

Research Question 1

How do content providers perceive advantages and disadvantages of affiliate marketing compared to other forms of online advertising The following table summarizes advantages and disadvantages of affiliate marketing described in the literature and content provider's perception of them. Table 12 - Case 3 Advantages and disadvantages of affiliate marketing The following table summarizes advantages and disadvantages of affiliate marketing described in the literature and content provider's...

Compensation Models in Affiliate Marketing

According to Fiore, in affiliate marketing particularly, advertisers can choose from three above described compensation models in order to pay commissions to the content providers Pay per sale (PPS) - commission is paid for each sale made by a visitor from the affiliate website. Pay per lead (PPL) - the affiliate is paid after a website visitor carries out a specified action - subscribes to a newsletter, fills in a questionnaire etc. Note Pay per lead is also known as Pay per action (PPA) Pay...

Examples of websites

Loanexplorer http www.loanexplorer.co.uk is a simple website allowing visitors to apply for loans for various purposes. The application itself is loaded from merchant storefront, white label and commission is made based on leads PPL model . Figure 11 - Case 2 loanexplorer.co.uk larger image available in thesis appendix Figure 11 - Case 2 loanexplorer.co.uk larger image available in thesis appendix Remortgageexplorer http www.remortgageexplorer.co.uk is a variation on previous website and...

Literature Overview

The literature overview depicts available theories and models that will be used for answering the research questions. First, we will look into affiliate marketing in a broader scope of online advertising and explain the most common terms used in both online advertising and affiliate marketing to have an insight into both first and second research question. Furthermore, the advantages and issues connected with online advertising will be described as well as benefits connected to affiliate...

Targetability

Ability of precise targeting in online advertising is incomparable to the traditional media. Ads can be targeted according to language, geographic region, time of the day and platform to name few Zeff, 1999 13 . Newly emerged advertising platforms, such as Google AdWords and AdSense, went far beyond common targeting and advertise extensive targeting possibilities as one of their key features. In Google AdWords, ads can be targeted according to Location of the user up to the level of a city...

Research Questions

Bruner 2004 claims, that since 2004 it has become more difficult for merchants to advertise at the websites of attractive content providers. With the evolution of new types of online advertising and growing interest in online advertising, content providers have more options to choose from ibid. . While the advantages of affiliate marketing for merchants are theoretically defined for instance Gallaugher et al., 2001 Hoffman amp Novak, 2000 Chatterjee, 2002 , benefits for content providers are...

Research Question

How can the situations, under which affiliate marketing is efficient for content providers, be characterized According to Duffy, in order to ensure success of their affiliate programs, companies and content providers should create a win-win relationship that would lead to generating enough sales at the merchants' web sites and sufficient earnings for content providers Duffy, 2005 . Libai et al. claim, that setting an interesting commission rate and commission model is crucial for attracting...