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What is Affiliate Web Marketing?!

Tech Research

by j0zf on Thursday November 12th, 2009 11:15 am

Wikipedia has a good explanation on what is affiliate marketing.  Affiliate marketing is one of the industries that my companies ApogeeINVENT and Product2Web specialize in.

From Wikipedia :
  • Affiliate Marketing is an Internet-based marketing practice in which a business rewards one or more affiliates for each visitor or customer brought about by the affiliate's marketing efforts. It is an application of crowdsourcing.
  • Internet marketing, also referred to as i-marketing, web marketing, online marketing, or eMarketing, is the marketing of products or services over the Internet. The Internet has brought media to a global audience. The interactive nature of Internet marketing in terms of providing instant response and eliciting responses, is a unique quality of the medium. Internet marketing is sometimes considered to have a broader scope because it not only refers to the Internet, e-mail, and wireless media, but it includes management of digital customer data and electronic customer relationship management (ECRM) systems.
  • An affiliate network acts as an intermediary between publishers (affiliates) and merchant affiliate programs. It allows website publishers to more easily find and participate in affiliate programs which are suitable for their website (and thus generate income from those programs), and allows websites offering affiliate programs (typically online merchants) to reach a larger audience by promoting their affiliate programs to all of the publishers participating in the affiliate network.
  • An affiliate is a commercial entity with a relationship with a peer or a larger entity.
  • Cost Per Action or CPA (sometimes known as Pay Per Action or PPA) is an online advertising pricing model, where the advertiser pays for each specified action (a purchase, a form submission, and so on) linked to the advertisement.
  • Cost per impression, often abbreviated to CPI or CPM for Cost per thousand impressions, is a phrase often used in online advertising and marketing related to web traffic. It is used for measuring the worth and cost of a specific e-marketing campaign. This technique is applied with web banners, text links, e-mail spam, and opt-in e-mail advertising, although opt-in e-mail advertising is more commonly charged on a cost per action (CPA) basis although sometimes CPM is used.
  • Cost per click (CPC) is the amount of money an advertiser pays search engines and other Internet publishers for a single click on its advertisement that brings one visitor to its website.
  • A web banner or banner ad is a form of advertising on the World Wide Web. This form of online advertising entails embedding an advertisement into a web page. It is intended to attract traffic to a website by linking to the website of the advertiser. The advertisement is constructed from an image (GIF, JPEG, PNG), JavaScript program or multimedia object employing technologies such as Java, Shockwave or Flash, often employing animation, sound, or video to maximize presence. Images are usually in a high-aspect ratio shape (i.e. either wide and short, or tall and narrow) hence the reference to banners. These images are usually placed on web pages that have interesting content, such as a newspaper article or an opinion piece.
  • Search engine optimization (SEO) is the process of improving the volume or quality of traffic to a web site from search engines via "natural" or un-paid ("organic" or "algorithmic") search results as opposed to search engine marketing (SEM) which deals with paid inclusion. Typically, the earlier (or higher) a site appears in the search results list, the more visitors it will receive from the search engine. SEO may target different kinds of search, including image search, local search, video search and industry-specific vertical search engines. This gives a web site web presence.
  • E-mail marketing is a form of direct marketing which uses electronic mail as a means of communicating commercial or fundraising messages to an audience. In its broadest sense, every e-mail sent to a potential or current customer could be considered e-mail marketing.
The Parties Involved :
"The Affiliate Marketing industry has four core players at its heart"
  • Advertiser (aka Merchant, Retailer, or Brand) : The party selling the goods, collecting the leads, or desiring signups.
  • Network : The network brings the Advertisers and Publishers together.
  • Publisher (aka Affiliate, Associate, Partner, Reseller or Content Site) : The party publishing the ads by website banners, pop-behinds, email, etc.
  • Customer : The party making the purchase, providing lead information, or signing up for a service or website.
Check out Clickbooth's List of Terminology

From SearchEngineLand :
The Affiliate Industry Strives To Clean Up Its Act
Unfortunately, affiliates do not always abide by the rules and requirements of your program.  For example, you may specifically prohibit keyword sponsorship of your best terms or your brand terms. You may look to keep your affiliates from co-promoting you alongside of your competitor(s) on the same landing page, you may have restrictions on paid search regarding rank, or you may have restrictions on ad copy (e.g. affiliates cannot use the phrase “official site” or make superfluous claims about your product).   These terms may be explicitly defined in your affiliate agreement, but regardless of your contract, your affiliates want to make money and that is inspiration enough to break or bend your rules when it suits their needs.
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