A Time of Change in the Digital World
The Digital Media Evolution: A birds-eye view of Affiliate Marketing 2004 – 2008
It is hard to not to distinguish the stages of evolution which have taken place over the period of 2004 to 2008. I have noted these changes first hand and often gasp at the rapid growth of our space. The online marketing realm was built on innovation and it is for this very reason it will continue to progress at a staggering rate.
The affiliate marketing community is comprised of varied distribution methods and unique business models. The common denominator, is our end goal to successfully monetize the traffic we are receiving or in some case acquiring. So where were affiliate marketers in 2004 and what has changed today?
E-mail Marketing – Inbox Gold
During 2002 to the mid/end of 2005 e-mail marketers dominated the space as a lucrative distribution channel. The creation of the CanSpam Act assisted with enhancing the user experience and establishing provisions and guidelines for affiliate marketers to adhere to. Today e-mail marketing continues to evolve as a brand centric distribution channel with solid reach.
Display Marketing and the Pop Up Ad Bust
Simple display marketing was, and will remain, the pillar of CPM media buys. This platform will continue to be used as a method to drive brand awareness however ROI has vastly shifted due to contextual/behavioral technologies moving to the forefront during 2007. Late 2005 and early 2006 brought forth the regulation of adware programs which was very much spearheaded by the work of Mr. Benjamin Edelman. Many affiliate networks moved to cease any/all association with organizations deemed as adware networks and affiliate marketers were forced to seek new distribution channels.
Search Engine Marketing [SEM] – Put Your Money Where Your Mouth Is
The affiliate community shifted their marketing spend during 2006 and thus began the pay-per-click revolution. Many publishers tested multiple platforms simultaneously [Google, Yahoo etc] in order to gage their ROI, learn the platforms and test all possibilities. Late 2006- early 2007 the tipping point occurred and PPC soon became the distribution channel of choice regardless of grave competition.
Social Media Extravaganza
Search engine marketing spearheaded a new level of reach/audience targeting and then, welcome the explosion of social networking sites. Although Friendster and MySpace were first to launch, it wasn’t until Facebook opened its API [mid 2007] that affiliate marketers could capitalize on sites of this nature. Today publishers can select from a number of metrics and creative outlets which best meet their unique marketing needs and business models.
Today a distribution channel is classified as any of the above platforms however there are many others bubbling to the surface [IE mobile]. Regulation will dictate the next course of action for all marketing platforms but technological advances will indulge the savvy affiliate marketer throughout the evolution of digital media.
13 Comments, Comment or Ping
Steffan Antonas
Good list, but it leaves out a critical piece of the puzzle. PPC fell out of favor in late 2007 because of uncontrollable fraud on the web (bots, people clicking their own links etc) and the market is now dominated by Pay Per Lead, Pay Per Sale and Pay Per Action programs (affiliate marketers only get paid when the user does something – purchases, fills out a form with valid data etc). Affiliate marketers are leveraging the difference between PPA, PPS and PPL programs by advertising on social media networks using PPC marketing….but that’s not what’s actually defining the affiliate marketing system for the marketers. It’s just how they’re driving traffic to their links.
Sep 12th, 2008
Ben Edelman
Chantelle,
Interesting thoughts. I’d like to continue the discussion by email. Send me a note? My email is listed with the comment submission, or see http://www.benedelman.org/mail/ .
Ben Edelman
Sep 13th, 2008
Scott Parent
Hi Ben,
Thanks for commenting. We’d prefer to have a discussion here on our blog. If we take the discussion offline and to email, everyone else will miss out on it.
Love for you to share your thoughts.
-Scott
Sep 13th, 2008
Ben Edelman
My Automatic Spyware Tester has repeatedly, and recently, observed AdValiant affiliates using spyware & adware to claim commissions not fairly earned. Chantelle’s initial post indicates a negative view of such practices, but I have proof that they’re ongoing — and I have reason to believe they’re not de minimis.
I would think this is something advaliant would want to prevent. And I continue to think this particular problem is better discussed by email, where I can provide an example or two for you to review, rather than on the web for all to see.
Sep 14th, 2008
Jivan Manhas
Ben,
I would be happy to discuss your findings. We take these matters very seriously and if your claims are correct about any of our affiliates they will be dealt with accordingly. You can email me your proof directly at jmanhas at advaliant.com.
I look forward to your email.
Best,
Jivan Manhas
President
Sep 14th, 2008
peter bordes
Steffan
that is a very good topic to expand on. i believe the points you bring up are important drivers for the growth of the performance marketing industry. as the markets have matured we have seen the herds move from CPM’s to CPC’s and now to the final mechanism of the pure transaction. all the others become pure distribution mechanisms at the front end of the funnel of liquidity. new channels can be layered in such as widgets or video. but they all ultimately drive users to the end of the funnel and a transaction.
The key in the next generation that Chantelle has started in her discussion is to move into platforms that are open, modular and agnostic. they can plug into any distribution channel and provide all the tools for affiliates and advertisers to optimize and analyze with the goal being the highest conversion rate and roi on both sides.
This is the next evolution of digital marketing as we move from the world of siloed solutions and one dimensional networks. to open digital platforms that are connect forming an ecosystem of services and solutions that are all connected and intelligent.
digital media and marketing is moving towards being more organic/biological as everything is connected.
I would love to here what others feel is the next evolution or the next wave of innovation/ it is just starting in the next wave of performance marketing/
Sep 14th, 2008
peter bordes
Ben
Thank you very much for your comments and taking the time to reach out to us thru the blog. we do take these matters very seriously and work very hard to ensure the best systems and quality of traffic possible. we also like being open and transparent about these matters because it helps effect change in our markets that have in the past been black boxes. we care about our affiliate and advertiser community and welcome proactive collaboration so that we can make our industry a better place so that it can grow and mature.
I read your blog and bio and would love to connect with you.
peter bordes
ceo
mediatrust/advaliant
Sep 14th, 2008
Ben Edelman
Peter, Jivan –
I sent you an example spyware incident nearly two weeks ago. I have not received a reply nor even an acknowledgement of receipt. Did you get it? If not, let’s follow up through some other medium (e.g. phone) to make sure a junk mail filter isn’t standing in our way.
Ben Edelman
Sep 25th, 2008
Scott Parent
Hi Ben,
I just spoke with Jivan. He hasn’t received anything from you via email. Please feel free to email me what you have at sparent at mediatrust dot com.
He is in London this week and will be in touch upon his return.
Thank you,
Scott Parent
VP, Emerging Media & Strategy
Sep 25th, 2008
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