As long as the concept of selling and advertising exists, marketeers have bemoaned the effectiveness of their advertising campaigns. Paying for advertisements first and receiving benefits later, advertisers are vulnerable to low- or non-performing ad placements. Affiliate marketing seems to offer a refreshing change: In this performance-based approach to online marketing, advertisers pay only when a sale occurs.
This idea is not new, but the traditional offline approach is being successfully transferred to the online world.
The objective of this synopsis is to give an overview about affiliate marketing: Definition and characteristics, functional principal and value creation are some of the key elements.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Objective of the paper
- Affiliate Marketing
- Definition
- Objectives
- Functional principle
- Advertisement methods
- Commission models
- In-house vs. brokered Affiliate Marketing
- Stakeholders
- Interactions
- Network characteristics
- Value Creation
- Conclusion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This synopsis aims to provide a comprehensive overview of affiliate marketing, covering its definition, characteristics, functional principles, and value creation. It explores the key elements of this performance-based online marketing strategy, highlighting its significance in the e-commerce landscape.
- Definition and characteristics of affiliate marketing
- Functional principles and mechanisms of affiliate marketing
- Value creation and benefits for stakeholders involved
- Different approaches to affiliate marketing: in-house vs. brokered
- The role of networks and their impact on the affiliate marketing ecosystem
Zusammenfassung der Kapitel (Chapter Summaries)
The introduction sets the stage by discussing the challenges of traditional advertising and how affiliate marketing offers a performance-based solution. It highlights the importance of affiliate marketing in e-commerce and its technological complexities, which are being addressed by network companies. The chapter also acknowledges the downsides of affiliate marketing, emphasizing that it is not a guaranteed solution for online success.
Chapter 2 delves into the core concept of affiliate marketing, providing a detailed definition and outlining its objectives. It explores the functional principles, including advertisement methods and commission models, as well as the key stakeholders involved in this model. The chapter also examines the differences between in-house and brokered affiliate marketing, highlighting the characteristics and interactions within affiliate networks. Finally, it discusses the value creation that results from successful affiliate marketing initiatives.
Schlüsselwörter (Keywords)
Affiliate marketing, online advertising, performance-based marketing, e-commerce, network companies, value creation, stakeholders, in-house vs. brokered, commission models, advertisement methods, functional principles, network characteristics, value creation.
Frequently Asked Questions
What is Affiliate Marketing?
Affiliate marketing is a performance-based online marketing strategy where advertisers (merchants) pay publishers (affiliates) only when a specific action, like a sale or lead, occurs.
What are the common commission models in Affiliate Marketing?
The most common models are Pay-per-Sale (PPS), Pay-per-Lead (PPL), and Pay-per-Click (PPC), with PPS being the most popular for e-commerce.
What is the difference between in-house and brokered affiliate marketing?
In-house programs are managed directly by the merchant. Brokered programs use an affiliate network (like Awin or CJ) to handle tracking, payments, and finding affiliates.
Who are the main stakeholders in Affiliate Marketing?
The main stakeholders include the Merchant (advertiser), the Affiliate (publisher), the Affiliate Network, and the Customer.
What are the benefits of Affiliate Marketing for merchants?
Benefits include low risk (pay-on-success), increased brand reach, and access to niche audiences through various publishers.
- Arbeit zitieren
- Philipp Stoebel (Autor:in), 2016, Affiliate Marketing as a Strategy for E-Commerce, München, GRIN Verlag, https://www.grin.com/document/351596
