Great event for affiliate marketers organized yesterday by affiliates4u events team. Four hundred attendees, merchants, affiliates and affiliate networks.
Merchants are clearly courting affiliates and their ability to attract targeted user traffic. From Kevin Cornils buy.at presentation; affiliates sold in excess £ 2000m goods online for a fee of £140m. A year-on-year rise of 60%, taking an alleged 10% of total online advertising spend.
Clearly merchants are discovering the pay-on-acquisition model. My opinion is that CPA commissions will inevitably rise though, as merchant demand for the model exceeds the volume available through affiliate networks. In the end, buy through ad impressions (CPM), clickthroughs (CPC), and on-purchase-results (CPA) will balance out to give the same value-for-money (ROI).
Yes, what a soup of acronyms.
The word branding came up in conversations increasingly. Paid-search and affiliate marketing have a secondary benefit in addition to the immediate sale; repeat sales. In fact, the repeat sales experts extraordinares, the email marketers, were very evident at the event. It is not just about the sale on clickthrough, it is about the repeat visit. The brand and the loyalty. In fact, one expert from UK Media Ltd, who arbitrages £ 12m in volume, says branding is the next natural step for affiliate web sites.