Affiliate marketing is an advertising model in which a company compensates third-party publishers to generate traffic or leads to the company’s products and services. The third-party publishers are affiliates, and the commission fee incentivizes them to find ways to promote the company.
Affiliate marketing predates the Internet, but in the world of digital marketing, analytics, and cookies made it a billion-dollar industry.
A company running an affiliate marketing program can track the links that bring in leads and, through internal analytics, see how many convert to sales.
An e-commerce merchant wanting to reach a wider base of internet users and shoppers may hire an affiliate. An affiliate could be the owner of multiple websites or email marketing lists; the more websites or email lists that an affiliate has, the wider its network. The hired affiliate then communicates and promotes the products offered on the e-commerce platform to their network. The affiliate does this by running banner ads, text ads, posting links on its websites, or sending emails to clientele. Firms use advertisements in the form of articles, videos, and images to draw an audience’s attention to a service or product.
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