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dgm university>>affiliate marketing |
CPM/CPC versus CPA/CPS (performance marketing)
In the case of CPM or CPC/PPC the publisher does not bother if the visitor is the type of audience that the advertiser tries to attract and is able to convert, because the publisher already earned his commission at this point. This leaves the greater, and, in case of CPM, the full risk and loss (if the visitor can not be converted) to the advertiser.
CPA and CPS require that referred visitors do more than visiting the advertisers website in order for the affiliate to get paid commission. The advertiser must convert that visitor first. It is in the best interest for the affiliate to send the best targeted traffic to the advertiser as possible to increase the chance of a conversion. The risk and loss is shared between the affiliate and the advertiser.
For that very reason affiliate marketing is also called "performance marketing", in reference to how employees that work in sales are typically given incentives in return. Affiliates are not employed by the advertiser whose products or services they promote, but the compensation model applied to affiliate marketing is quite similar to the ones used for people in the advertisers' internal sales department.
The phrase, "Affiliates are an extended sales force for your business", which is often used to explain affiliate marketing, is not 100% accurate. The main difference between the two is that affiliate marketers cannot, or not much influence a possible prospect in the conversion process, once the prospect was sent away to the advertisers website. The sales team of the advertiser on the other hand does have the control and influence, up to the point where the prospect signs the contract or completes the purchase.
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Case Studies...
"DGM has enabled Sainsbury's Bank to cut through and reach their target market with phenomenal success."
Victoria Blackmore, Digital Media Account Director, Universal
"Growth for theaa.com in this area has been spectacularly cost-efficient."
Ben Walton, Head of E-Commerce Marketing, The AA
"DGM and their affiliates are a valuable and important element to our online sales strategy."
Chris King, Head of Affiliate Sales, BT
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