Special Report Affiliate Marketing
October 2005
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Although it's had its share of problems over the past few years—such as incidents of click fraud and spamming issues—affiliate marketing is fast becoming a key part of many e-commerce businesses.
According to JupiterResearch's report, Affiliate Marketing Developing a Solid Affiliate Base, when asked about their affiliate programs, 78 percent of merchants with affiliate programs grew those programs in 2004, and 38 percent grew them by as much as 25 percent or more. Furthermore, last year, nearly all of these merchants had at least one dedicated, full-time employee managing their affiliate programs, and only one in 10 merchants who have an affiliate program now leave the program wholly unmanaged.
This special report tracks the trends and techniques that are shaping affiliate programs and the evolving relationships between marketers and their affiliates. In a Q&A, JupiterResearch Senior Analyst Gary Stein shares his insights on this sector, detailing pitfalls to avoid when working with affiliate partners, as well as some tips on how to spot and nurture affiliates that will be as invested in your site and products as you are.
In addition, Jeff Molander, CEO of Molander & Associates, assesses the trajectory of affiliate marketing, as it takes its place as a key component of a performance-based approach to marketing strategy.
Finally, learn how Cooking.com optimized its affiliate marketing program thanks to a more direct relationship with its affiliate partners, which has helped the retailer cut costs and understand affiliates' needs.
—Irene Cherkassky, Senior Editor
The Evolution of Affiliate Marketing
Affiliate takes its place as part of an emerging focus on integrated performance marketing
By Jeff G. Molander
Affiliate marketing quickly has become one of many online strategies—along with search, portal deals and the like—that are part of an integrated approach that allows marketers to more accurately measure success. Discussions with change-oriented direct marketing industry veterans offer an honest perspective and reveal significant tactical shifts of how and where change will occur and how you can best capitalize on the forces that already are shaping the future.
Industry Pulse Check
How big is affiliate marketing? Cambridge, Mass.-based Forrester Research rushed to answer the question in 1999, claiming that $10.5 billion in e-commerce sales would pump through affiliates by 2001. Since then, we've not heard a peep regarding size, as affiliate marketing has yet to be clearly defined. The entrance of dozens of privately held cost-per-acquisition (CPA) networks further complicates understanding of this market potential.
According to JupiterResearch's report, Affiliate Marketing Developing a Solid Affiliate Base, when asked about their affiliate programs, 78 percent of merchants with affiliate programs grew those programs in 2004, and 38 percent grew them by as much as 25 percent or more. Furthermore, last year, nearly all of these merchants had at least one dedicated, full-time employee managing their affiliate programs, and only one in 10 merchants who have an affiliate program now leave the program wholly unmanaged.
This special report tracks the trends and techniques that are shaping affiliate programs and the evolving relationships between marketers and their affiliates. In a Q&A, JupiterResearch Senior Analyst Gary Stein shares his insights on this sector, detailing pitfalls to avoid when working with affiliate partners, as well as some tips on how to spot and nurture affiliates that will be as invested in your site and products as you are.
In addition, Jeff Molander, CEO of Molander & Associates, assesses the trajectory of affiliate marketing, as it takes its place as a key component of a performance-based approach to marketing strategy.
Finally, learn how Cooking.com optimized its affiliate marketing program thanks to a more direct relationship with its affiliate partners, which has helped the retailer cut costs and understand affiliates' needs.
—Irene Cherkassky, Senior Editor
The Evolution of Affiliate Marketing
Affiliate takes its place as part of an emerging focus on integrated performance marketing
By Jeff G. Molander
Affiliate marketing quickly has become one of many online strategies—along with search, portal deals and the like—that are part of an integrated approach that allows marketers to more accurately measure success. Discussions with change-oriented direct marketing industry veterans offer an honest perspective and reveal significant tactical shifts of how and where change will occur and how you can best capitalize on the forces that already are shaping the future.
Industry Pulse Check
How big is affiliate marketing? Cambridge, Mass.-based Forrester Research rushed to answer the question in 1999, claiming that $10.5 billion in e-commerce sales would pump through affiliates by 2001. Since then, we've not heard a peep regarding size, as affiliate marketing has yet to be clearly defined. The entrance of dozens of privately held cost-per-acquisition (CPA) networks further complicates understanding of this market potential.
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