Affiliate marketing advertiser vs publisher

a relationship between three parties:

Some people remember the 1990’s as a tremendous period of growth for grunge music and Jim Carrey films. While this is true, most people will probably tell you the 90’s were responsible for this big, beautiful, technology called the World Wide Web (aka the internet, the web, the vast digital ocean of information at our finger tips). And with any new technology or media, companies quickly realized they had a new opportunity to market their products and services to consumers via the millions of websites they visit every day.

Hopefully you've learned some basics about how to be an affiliate or an advertiser and how affiliate marketing works.

A publisher is an individual or company that promotes an advertiser’s product or service in exchange for earning a commission. Advertisers contractually agree to work with a publisher, then provide the publisher with creative – in the form of links, banner or text ads or even unique phone numbers – that the publisher incorporates into their website.

The phrase, "Affiliates are an extended sales force for your business", which is often used to explain affiliate marketing, is not completely accurate. The primary difference between the two is that affiliate marketers provide little if any influence on a possible prospect in the conversion process once that prospect is directed to the advertiser's website. The sales team of the advertiser, however, does have the control and influence up to the point where the prospect either a) signs the contract, or b) completes the purchase.

In February 2000, Amazon announced that it had been granted a patent [14] on components of an affiliate program. The patent application was submitted in June 1997, which predates most affiliate programs, but not PC Flowers & (October 1994), (October 1995), (January 1996), EPage (April 1996), and several others. [9]

Affiliate marketing is also called "performance marketing", in reference to how sales employees are typically being compensated. Such employees are typically paid a commission for each sale they close, and sometimes are paid performance incentives for exceeding objectives. [21] Affiliates are not employed by the advertiser whose products or services they promote, but the compensation models applied to affiliate marketing are very similar to the ones used for people in the advertisers' internal sales department.

Affiliate marketing currently lacks industry standards for training and certification. There are some training courses and seminars that result in certifications; however, the acceptance of such certifications is mostly due to the reputation of the individual or company issuing the certification. Affiliate marketing is not commonly taught in universities, and only a few college instructors work with Internet marketers to introduce the subject to students majoring in marketing. [37]

The two primary players in any affiliate marketing arrangement are the content-creating affiliate and the product-selling merchant. But as affiliate marketers know, networks such as Commission Junction and LinkShare are key components of the “ecosystem” as well. Just as many sites that monetize via display advertising attempt to establish direct relationships with advertisers and cut out ad networks, successful affiliate marketers may wonder about eliminating networks and working directly with their merchants.

Product A looks like the winner, right? Not necessarily; your expected revenue from promoting this product depends on the likelihood of conversion. Suppose the conversion rates look like this:

For publishers, the affiliate marketing revenue equation looks something like this (we’ve bolded the factors that are most within your control in optimization efforts):

Harder to evaluate is the quality of the ads.

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Through our global affiliate network, we empower marketers to engage shoppers across the entire consumer journey. Affiliate success comes down to partnerships — we connect advertisers with publishers to reach new audiences and influence repeat purchases. Our solutions create a holistic strategy that delivers proven incremental revenue and is continually optimized for performance.

“As we grow as a brand and add more global ecommerce distribution, Rakuten Affiliate Network will be a vital part of that growth.”

Still think you will be confused on who’s who? Try these little tricks to never answer the “Who are you” question wrong again…

For some, this is confusing. It’s like arriving at the airport and being confused if you’re the ‘arrival’ or ‘departure’? You’re the departure if you are going to the airport for travel, but because you are technically “arriving” at the airport – you feel like an “arrival”. How about when you’re at an Affiliate event of sorts and asked if you’re an “Advertiser” or “Publisher”? There’s a pretty big distinction and the wrong answer could steer the conversation in the wrong way – just like the wrong section of the airport. An Affiliate may place ads on their website feeling like an Advertiser. But in reality an Affiliate is a Publisher. Let us help you define the two in a text-book kind of way while also helping you never, ever forget the difference between the two again!

Simply this is the person with something to sell. They are the ones who are asking for Affiliates to promote their products. The Advertiser is the Merchant. The ones with an Affiliate Program for you to promote. The one who will pay you for sending sales their way. This is!

In most cases, this is you! The Affiliate. The one representing the Advertiser with their blog, website, or newsletter. The Publisher will choose a method to promote the Advertiser and send referrals to the Advertiser. The Publisher is the one getting paid.

Are they Publishers or Advertisers?

The Advertiser will get a lot of new users to their content and, hopefully, they’ll continue to access it, generating value on a regular basis.

Or even how they actually make money?

That’s why they should always choose wisely.