Welcome to the digital age of marketing. If you’ve landed here you’re looking to find out what is really going on with advertising. You may be shocked to learn where a large amount of fortune 500 companies marketing budget is now going.
Lets paint a picture here with a couple of popular questions you may have.
Have you ever seen an ad pop up in some way when you are minding your own business on the internet?
Well… that’s it! This is a prime example of affiliate marketing. We bet you saw that there was advertisement that was placed in front of you, whether you were watching a video, reading an article, playing a game or about to download your new favourite e-book. Regardless of where you saw the advertisement it all goes back to affiliate marketing.
Do you ever wonder how that ad got there?
Sure I see that advertisement pop up and disrupt my causal reading, why is it there when it wasn’t yesterday. Well, more and more people that own websites, create apps and write blogs are beginning to monetize their online presence.
It does cost money to create these things and to maintain this level of valuable information you are reading on the internet. People are placing their ads in front of you in a way that is either obstructive or in ways that it flows with the content. Either way they are delivering a piece of content that they are getting paid to promote.
What happens behind the scenes?
Behind the velvet cloth is not as complicated as you may initially think. That advertisement got there because either someone was buying advertisement space on your favourite website or the website owner put it there and gets paid each time someone interacts with it.
Is money exchanged when I click on it?
Now you may be thinking if someone interacts with does it cost the advertiser money? Well, in many ways it doesn’t.
- CPM: If the advertiser is paying for impressions, they pay every 1,000 times someone lands on the web page.
- CPI: In a cost per install model, there is no money exchanged until you interact with the advertisement and download something
- CPA: in a cost per action model, there is no money exchanged until you interact with the advertisement, download something, and then complete an action like take your first ride in a taxi, reach a specific level in a game or deposit real money into a casino app
- CPL: in a cost per lead model, money is only exchanged after you click on the banner and then fill out a form on a landing page and click submit
- CPC: For our purposes, lastly, this is the model where each time you click on an advertisement the advertiser is paying for it
Your right, if you click on an advertisement you see, you may be costing someone money … but the likelihood of that being the type of offer you are seeing that costs someone money each time you click it, could be 1/8 ads. You can introduce yourself to us if you want to promote one of these offers.
How does the advertiser make money?
Now you understand what affiliate marketing is, you may be wondering what is in it for the advertiser. Well, ROI is the simplest way to describe their stake in the ad. They determine what their customer is worth to them and create an ad that will get them the customer for less than the customer is worth.
For example … if the advertiser is a telecom provider, a customer that chooses their services is locked into a contract for 12 months. Each month a customer may pay $30.00 per month. They will gladly place an ad and pay the website owner anything less than $360 to get a customer to subscribe to their services. This results in a positive ROI for the advertiser and worthwhile to create an ad through affiliate marketing. Introduce yourself to us if you want to monetize your product or service!
Click here to learn more about Affiliate Marketing – The Digital Age of Direct Marketing