Affiliate Marketing

In this example a 'merchant' is an online retailer with an ecommerce website, where you can buy products or services. An 'affiliate' is an online publisher or partner who has access to traffic.

Affiliates are traditionally website owners who can send traffic, via links to your site. They do this on the basis that any sales generated from this traffic will earn them an agreed commission. This reward model is commonly known as Cost Per Action (CPA) and is more transparent and accountable than the older Cost Per Click (CPC) model.

There are many different affiliate types to work with and these relationships are facilitated by a merchant joining the network and using the promotion tools available. In every case the affiliate takes the risk of sending you traffic at no cost to you as you only have to reward them if their traffic completes a purchase or lead.

Identifying the correct Affiliate Network is so mean task, as some of them specialise in certain sectors.

Emart will work closely with you to understand the nature and structure of your business We will then establish what you want the affiliates to deliver to you, e.g. leads or sales. When we have identified these key requirements, Emart will research the Affiliate Networks then present to you our recommendations.

Online shopping has been predicted by to account for 40% of all UK retail sales by 2020*. At present households spend on average 10% (£980) of their annual shopping budget online - typically on insurance, holidays, electronics, clothes and gift items.

Affiliate marketing in the UK grew by an estimated 45% during 2007, taking the total value of online sales generated by this channel for that year to over £3 billion^†. With a conservative estimate of commissions and fees paid out to affiliate networks amounting to £186 million, an increase of 40% on 2006. This covers both the affiliate commission and network override.

The same report^† found that UK merchants involved in affiliate marketing drive 16% of their online sales via this channel and that 78% of them expected to be "more reliant" on affiliate marketing by 2009.

In light of these statistics and predictions it is clear that affiliate marketing should form part of an integrated and successful digital marketing strategy.

* USwitch – insert date and reference details
^†The eConsultancy Affiliate Marketing Merchants Report 2007