What is affiliate advertising?

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Affiliate advertising is a type of web advertising in which companies have people called affiliates place their company's advertisements on websites and blog articles , and when a user takes an action through that advertisement, advertising fees are incurred and a portion of the commission is paid to the affiliate.

The word "affiliate " means " partnership " in English, and it comes from the idea that advertisers who want their ads to be displayed and affiliates who want to make money by displaying the ads form a " partnership ."



For example, let's take the example of Company A, which sells cosmetics.

Let's say affiliate marketer B places an affiliate ad about cosmetics on an article he is writing, and user C who visits the article sees the ad and purchases the product.

In this case, company A will make a profit when pr directors email database person C purchases the product. A part of that profit will be paid to affiliate B as a reward.


In this way, affiliate advertising is web advertising in which advertisers and advertising space providers (referred to as affiliates in this case) work together to promote the sales of products and services.



How Affiliate Advertising Works
Affiliate advertising is made possible by the existence of a service called ASP.


An ASP is a service that consolidates advertisements for products and services from advertisers in one place , allowing affiliates to choose the advertisements they want to display.

This makes it easier for advertisers looking to place affiliate ads to find affiliates , and at the same time, it makes it easier for affiliates to find affiliate ads .

On the other hand, without ASPs, for example, advertisers would have to find an article in which they want to place an affiliate ad, make a request to the media owner, then find another article they want to place, and make another request to the media owner, which would be a lot of work.Thanks to ASPs, however, this has made it possible to eliminate such hassle .


Please see the diagram below to see how affiliate advertising works.





This is how affiliate advertising works.



The pros and cons of affiliate advertising
Benefits of Affiliate Advertising
The main benefits of affiliate advertising are:

① Cost-effective ②
Potential to be featured on many sites
③ Reduces hassle
④ Initial costs are relatively low


We will explain each one in detail.


Cost-effective
Affiliate advertising is cost-effective compared to other forms of online advertising .

The reason for this has to do with the payment method . There are various payment methods, such as performance-based, click-based, and free. By choosing the performance-based method , advertising costs will only be incurred when a user actually purchases a product or service.

Therefore, since advertising costs do not depend on the number of clicks, as is the case with listing ads and ad network ads, it is possible to keep advertising costs relatively low .



It can be featured on many sites
Affiliate ads may appear on many sites.

The reason is that simply by registering with an ASP provider, if many affiliates who want to post their company's affiliate ads appear, they can all post their ads on their own blogs, etc., which means that the ads can be seen by a lot of users all at once.


For example, ads that offer high commissions are likely to be something that many affiliates want to post and introduce, so it's a good idea to keep the profit margin in mind when placing affiliate ads.