AFFILIATE MARKETING

What is affiliate marketing? Affiliate marketing is described as “a revenue sharing between a website owner and an online merchant.” The website owner would help sell the products of the merchants either by their own websites or lead customers to the merchants website. The website owner would then receive a payment for their service. There are three types of affiliate marketing strategies: pay per click, pay per sale, and pay per lead. This post will focus only on pay per click. Pay per click involves advertisers placing a budget limit on the amount of clicks customers can click on their ads. Pay per click works with search engines by allowing advertisers to bid on keyword or phrases that is related to their target segment. When a customer types a word that matches an advertiser’s keyword list, or surfs on a webpage containing the relevant content, the advertisements may be displayed. The three main pay per click providers are Google Adwords, Yahoo! Search Marketingand Microsoft adcenter. PPC HERO reviews Google adword as delivering the most traffic, highest visiblity and contains the most user friendly interface. However the disadvantage is the high amount of competition which drives the amount of work needed to gain visibility. For yahoo, the plus side is that there is less competition but the interface is not as strong as google. Businesses who plans to pay per click adverstising must be aware of click fraud. Click fraud occurs when the ads are being clicked without having actual interest in the message of the ad. This type of action can involve certain people sabatoging a firm’s ad campaign by driving that firm’s marketing expense very quickly without receiving enough sales. To prevent click fraud from happening to you, Words in a row suggests a few tips: research on what the provider’s strategy against click fraud is, invest in a fraud prevention tool such as Click Detective and focus on narrowing your target market to those that you mainly want to see your ads. This prevents outsiders who have no relevant to your marketing campaign from seeing your ad.

~ by echen86 on November 19, 2008.

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