Marketing week article on affiliate marketing

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Not sure if anyone has read this as yet or picked it up in their blogs, but there was an article in MW this week with some 'interesting' parts:

News: Are affiliates friends or foe? - Marketing Week

The problem for affiliate marketing today is that while it can be a hugely effective - and cost-effective - weapon in the digital marketing arsenal, most marketers are using it badly and are either paying too much for the clicks they are getting or, worse, are risking damage to their brands by allowing them to be associated with sites and content they should be steering well clear of.

Unfortunately, the whole system is open to abuse - either accidental or deliberate. Critics point out that few client marketers have the technical expertise to manage an affiliate programme in house, while many affiliate sites have little or no understanding of the advertising sales world. Furthermore, networks have historically had little incentive to police affiliate activities and clamp down on rogue traders because the more affiliate traffic there is, the more revenue they get. The same, arguably, applies to the search engine companies themselves.

I just wondered what people's thoughts are on this? While I agree there are issues for marketers with ensure brand continuity and protection when using affiliate marketing as a channel, there are options in place across numerous networks to protect the brand and also networks seem to be getting better at policing it.

[stevebrowne]

I would agree with some parts but disagree with more.

The real issue is that many traditional marketeers have little or no-understanding of the Internet. AM is cheaper than most other forms of marketing as they only pay when a sale is made.

How much is a full page ad in the News of the World, The FT etc.? What's the return? Same question for a prime time TV advert?

Yes they need to protect the brand but that's easy enough for them to do.

>> paying too much for the clicks
That's laughable considering some of the current antics.

[sgpratley]

None of those issues are limited to affiliate marketing.

You could point the same finger at anyone running CPC advertising on Google or Yahoo's publisher networks, or just about anyone making blind network ad buys on a CPM basis.

The problem is that too many merchants are just looking at the sales per pound spent and hoping for the best when it comes to putting in the effort to protect their brands.

It's like Fast Food Nation for the advertising world. If you start buying your inventory at stupidly low rates, you have to ask whether someone, somewhere is cutting corners.

Typical of Marketing Week to think that affiliate marketing is an advertising buy, not a sales channel. Anything that can't be measured in reach is over their heads. That's why they can't tell the difference between a CPC and a CPA.

[drivetowin]

Sadly there are journalists who bother to investigate before they write a story...

And then there are those who work for Marketing Week...........................

[Red]

And then there are those who work for Marketing Week...........................

Ha ha! Nice one

[Shane]

my fave quote

"the winners and losers in terms of affiliate networks are changing as clients become more conscious that these networks cream up to 30% of the sales they drive, for not doing very much. Over time, some of the older networks have become rather lazy in terms of their customer service."

if only they knew the real story heh ! .. it'd be like the watergate scandal all over again lol ! ... affiligate ahoy methinks !

[Helen]

I stopped talking to journalists as they just didn't understand the industry well enough to actually put forward my comments in the context they were given.

this is just yet another frustrating article that only looks at affiliate marketing from certain perspectives.

"most marketers are using it badly and are either paying too much for the clicks they are getting" i would argue in most cases merchants are not paying affiliates enough per click compared to other online acquisition strategies.

i have worked with BIG brands and managed their affiliate programs and their online media campaigns and partnerships. i read this statement "are risking damage to their brands by allowing them to be associated with sites and content they should be steering well clear of" Brands cannot police the web and i have had this argument time and time again - in my experience is if you manage a program correctly this is not an issue. Don't get me wrong there are loads of trash sites out there, but you can put measures in place to not even start a relationship.

"The more sophisticated marketers now have the sense to build in rules on if and when their affiliates can bid for their trademarks or other words and phrases which are associated with their brands. But, some industry figures argue, those rules seem to apply only when someone is around to watch - so around 5.30pm on weekdays, when most clients leave work, some affiliates have been known to forget the rules and start bidding on keywords again". Most networks have measures in place to ensure this does not happen, perhaps they could back this statement up with actual examples rather than just assumption!

again this article just stresses the need for education in the industry....