What is affiliate marketing?

Affiliate marketing is a performance-based marketing method in which an advertiser uses an affiliate network to reach customers while only paying for performance.

The anatomy of affiliate marketing

Affiliate marketing consists of four actors which do business with each other on a performance-based agreement. These four actor typically include:

Advertiser

An Advertiser who runs campaigns through the affiliate network

Affiliate network

A network where advertisers’ campaigns are distributed to publishers (in this case is Adservice)

Publisher

A Publisher who promotes and drives traffic to advertiser’s campaigns

Customer

A customer who is in the advertiser’s target group

Affiliate marketing relies heavily on accurate tracking since the outcome of the customer’s action determines whether an advertiser has to pay the network for a conversion.

Why tracking matters in affiliate marketing

Using an affiliate network with accurate tracking is increasingly important because of the increased use of Adblocker and cookie-blockers. These can cause inaccurate results and misrepresentation of campaign results. At Adservice we are aware of these challenges, and we continuously develop our tracking solution to meet the highest standards.

Why haven’t I heard of affiliate marketing before?

Affiliate marketing is frequently overlooked by advertisers even though it is incredibly reliable in terms of marketing budgeting and customer reach provided, the network has effective tracking solutions.

Upgrade your marketing efforts today

Whether you are a Publisher looking to monetize your site or an Advertiser who wish to reach new customers, affiliate marketing may be the best marketing method you haven’t yet tried.

Here is an example of how affiliate marketing can work in practice

John is marketing manager at a shoe company called Sneakz. He wants to reach more potential customers but he only has a limited marketing budget. Instead of advertising through traditional media channels he wants more certainty on how his marketing budget is being spent.

Working with Adservice he agrees to set up a sales campaign, where he only pays a percentage of a sneakers sales price in commission. John only has to pay the commission after the sale of the sneaker has been made.

Using this setup, John can predict exactly how many sales he can expect to make with Adservice with the available marketing budget and how much he pays for each sale.

Here is how it works

1.

Adservice sets up the sales campaign

John’s contact person at Adservice sets up the sales campaign with the agreed upon terms

2.

Publishers promotes the campaign

Publishers in Adservice’s network who specialize in sneakers, apparel and fashion will promote the campaign to their visitors through banners and links available

3.

Visitor clicks on campaign banner

When a visitor clicks on the campaign banner they are sent directly to a specific product in the web shop

4.

Visitor buys the product

If, and only if, the visitor buys the product within a set timeframe, Sneakz will pay a commission to Adservice for the completed sale, and Adservice then pays the Publisher their commission

This is just an example of how a sales campaign could be setup with Adservice. There are lots of different types of campaign setups, depeding on what you wanne acheive.

Affiliate Campaigns types

Affiliate campaigns are typically set up as one of the following types

Cost per Lead (CPL)

Advertiser only pays the network after an agreed upon action has been performed

Cost per Sale (CPS or CPO)

Advertiser only pays the network a percentage of a sale amount after the sale has been made') }}

Cost per Click (CPC)

Advertiser only pays the network for each unique click recorded

Cost per Impression (CPI)

Advertiser pays for each time a banner or a marketing material has been shown

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