Affiliate 2.0
A strange new vocabulary has been introduced into the world of online media, thanks to the “Web 2.0” phenomenon that’s covered by virtually every trade publication today. User-generated content, blogs, social networks, mashups, widgets, wikis, podcasts, RSS…..for most marketers, it’s difficult to keep up with the dizzying pace of change, let alone determine if and how to leverage these new and emerging platforms. While much of hype about Web 2.0 is just that (hype), there are clearly companies like MySpace, YouTube, and Friendster who have helped to redefine the medium and empowered consumers like never before. How do marketers – particularly retailers and direct marketers – test the Web 2.0 waters without committing large branding budgets? Affiliate marketing may hold the key.
In the past year, we have helped a number of innovative and entrepreneurial companies discover that affiliate marketing can be a powerful way to marry what they have –- an online community and/or content -– with commerce. Publishers like Kaboodle, ThisNext, Like.com, MyPickList, Hawkee, and hundreds more are using tools like product data feeds, web or subscription services (like Performics' OrangeLinks) to monetize their content and audience with relevant products and offers from different merchants. And this is just the beginning.
In the next 12 months, we expect that Web 2.0 and affiliate marketing will intersect in an even more significant way when one or more of the largest social networks integrates loyalty marketing into their community. Clearly, the loyalty model is proven in the affiliate channel, with loyalty publishers among the top tier of affiliates for online merchants. Now imagine if an already-established community of 50-100 million consumers were to be rewarded for shopping – or having their friends shop – from their favorite (affiliated) merchants. It’s a powerful concept that we believe will be proven out in 2007.
Affiliate marketing may be one of the most “mature” areas of online advertising, yet as the original performance-based marketing channel, affiliate is arguably better positioned to tap into Web 2.0 than any other. With a new generation of internet users in control of the Web like never before, marketers can tap into some of the most innovative, new and emerging business models through the affiliate channel.
--Dan Chiss
