understand the opportunity that is affiliate marketing
This is the first of five thoughts addressing the opportunity presented by affiliate marketing in Australia and around the world. Research suggests that affiliate marketing is a growing opportunity for brands, bloggers, and publishers in general.
There are no official figures on the size of the affiliate market in Australia. However, informal research suggests that this market is currently growing at the rate of >30% per annum.
In the United States more formal data reports that affiliate marketing sales topped $5 billion in 2017, while in the United Kingdom, affiliate marketing sales now exceed 1% of GDP.
So, what is affiliate marketing?
The fact is, affiliate marketing takes many forms, and there are many business models involving affiliate marketing operating profitably around the world in 2018.
Investopedia defines affiliate marketing as, ‘an advertising model where a company pays compensation to third party publisher to generate traffic or leads to the company’s products and services. The third-party publishers are referred to as affiliates and the commission fee incentivizes them to find ways to promote the company’.
Investopedia also notes that, ‘affiliate marketing has increased in prominence with the Internet age. Amazon popularized the practice by creating an affiliate marketing program where websites and bloggers put links to the Amazon page for a product being reviewed or discussed in order to receive advertising fees when a purchase is made. In this sense, affiliate marketing is essentially a pay for performance marketing program where the act of selling a consumer on a product is outsourced across a vast network.’
For vendors, affiliate marketing offers a new and growing potential source of revenue. This opportunity is available to publishers and others.
In 2018, understand the opportunity that is affiliate marketing
Sources of core data – AM Navigator, IAB, Amazon, Matthew Sheppard, Marketing Land, Digital Grog, Ad News and MUM.
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D. John Carlson – Adviser and Speaker – 0402 273 350 or firstname.lastname@example.org .