The affiliate marketing is also called partnership marketing. The principle of this technique is as follows: affiliates or partners promote the products and services of other companies on their website in exchange for a commission. Affiliate marketing is a lever of performance marketing, which is firmly established in the Internet advertising industry.
Short Definition of Affiliate Marketing
Within the framework of affiliate marketing, there are different possible remuneration models; however, these models are similar to those of performance advertising, in that the advertiser or affiliate pays only for a truly successful action. This could be, for example, a click on an ad or a closed transaction.
Affiliate marketing: detailed definition
Affiliate marketing is rumored to have started at a given party in 1997, where the founder of Amazon chatted with a young woman about his website. She allegedly offered to sell Amazon’s books on her own site in exchange for a commission. Gradually, more and more partners – all willing to promote external products and services in exchange for a commission on payments received – joined Amazon’s program. Even today, Amazon is still a major player in affiliation.
According to Quora, affiliate marketing ad spend was $ 3.7 billion in 2013 in the United States.
How Affiliate Marketing Works: The Basics
Many businesses use affiliate marketing to promote their products and services online.
Advertisers will pay the commission if, and only if, a certain action is taken: clicking on a banner or ordering a product, for example.
Many website publishers spontaneously offer affiliate programs. Each time a new prospect arrives on the advertiser’s site (also called an affiliate), the affiliate who is at the origin is identified thanks to the tracking code that the advertiser inserts in all the links of its media promotions. In addition, clicking on an advertisement activates cookies, which are also used to track the process.
Affiliate marketing can also be managed through professional affiliate networks. These are platforms that bring together advertisers or affiliates and affiliates, while offering functionalities such as the delivery of advertising media, campaign monitoring or even tools to increase performance. They also ensure the payment of commissions to affiliates. Some of the leading affiliate marketing platforms include Zanox, Affilinet, and Belboon.
Benefits for Advertisers
In most cases, the goal of advertisers or affiliates is to attract potential customers to their site, so that they can, for example, complete a purchase.
By integrating their own content on an affiliate’s site in line with their business, the advertiser can attract more prospects to their site, which is likely to increase their sales.
Affiliate marketing is an additional favorable advertising opportunity for the advertiser or affiliate, as they only have to pay if they are successful. This form of performance marketing is therefore a low risk option.
Beyond the growth in turnover and sales, the integration of the advertiser’s promotional content on third-party sites also gives it an additional advantage, by giving a new boost to its brand image.
Benefits for affiliates
Affiliates can monetize their website, through the marketing of other products. The process is based on the integration of an advertisement on their site, such as a banner ad or a list of third parties.
As a partner, the affiliate receives a commission which varies according to the agreed remuneration model and which can be remuneration per click, per contact request or per transaction.
Affiliate Marketing Compensation Models
There are diverse remuneration models in affiliate marketing, which rely upon the premise on which the commissions are determined. All payments are performance dependent and are only triggered when a predefined goal is met:
The model CPC (Cost Per Click): a commission is paid to the affiliate whenever a user clicks on the ad.
Model CPA (Cost Per Acquisition): the affiliate commission is determined by a percentage of sales accomplished. CPL
model (Cost Per Lead): the commission is paid to the affiliate when a user performs a given action, for example a registration or a download.
Affiliate Marketing is a type of execution, marketing whereby affiliates have been promoted on their sites for outside organizations for remuneration.For example, a blogger can place advertisements from a partner company on their blog.
The advertiser, also called an affiliate, only pays the affiliate when a predetermined action is carried out by Internet users, such as the completion of a sale or registration for a newsletter. The most common payment methods of affiliate marketing are cost per click, cost per acquisition, and cost per lead.
Many website builders offer affiliate programs . But beyond a direct agreement between the advertiser and the affiliate, affiliate programs can also be subscribed through specialized platforms; Zanox, Affilinet and Belboon being the most famous actors.
Any affiliate who wants to successfully use affiliate marketing must provide quality content first. Only qualitative content, with high added value for users, is likely to bring traffic to a website and thus allow the publisher to increase his commissions. It is also important to carefully choose the best affiliate programs, offering advertising in line with the theme of a publisher’s site and the expectations of its audience.