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Historic development

Historic development

Affiliate marketing has grown quickly since its inception. The e-commerce2006 was £2.16 billion in the UK alone. The estimates were £1.35 billion in sales in 2005. MarketingSherpa's research team estimated that, in 2006, affiliates worldwide earned US$6.5 billion in bounty and commissions from a variety of sources in retail, personal finance, gaming and gambling, travel, telecom, education, publishing, and forms of lead generation other than contextual advertisingGoogle AdSense. website, viewed as a marketing toy in the early days of the Internet, became an integrated part of the overall business plan and in some cases grew to a bigger business than the existing offline business. According to one report, the total sales amount generated through affiliate networks in programs such as

Currently the most active sectors for affiliate marketing are the adult, gambling, and retail sectors. The three sectors expected to experience the greatest growth are the mobile phone, finance, and travel sectors. Soon after these sectors came the entertainment (particularly gaming) and Internet-related services (particularly broadband) sectors. Also several of the affiliate solution providers expect to see increased interest from business-to-business marketers and advertisers in using affiliate marketing as part of their mix. Of course, this is constantly subject to change.

Types of affiliate websites

Affiliate websites are often categorized by merchants (i.e., advertisers) and affiliate networks. There are currently no industry-wide accepted standards for the categorization. The following types of websites are generic, yet are commonly understood and used by affiliate marketers.

  • Search affiliates that utilize pay per click search engines to promote the advertisers' offers (i.e., search arbitrage)
  • Comparison shopping websites and directories
  • Loyalty websites, typically characterized by providing a reward system for purchases via points back, cash back, or charitable donations
  • Coupon and rebate websites that focus on sales promotions
  • Content and niche market websites, including product review sites
  • Personal websites (This type of website was the reason for the birth of affiliate marketing; however, such websites are almost reduced to complete irrelevance compared to the other types of affiliate websites.)
  • Weblogs and website syndication feeds
  • E-mail list affiliates (i.e., owners of large opt-in email lists that typically employ e-mail drip marketing) and newsletter list affiliates, which are typically more content-heavy
  • Registration path or co-registration affiliates who include offers from other merchants during the registration process on their own website
  • Shopping directories that list merchants by categories without providing coupons, price comparisons, or other features based on information that changes frequently, thus requiring continual updates
  • Cost per action (CPA) networks (i.e., top-tier affiliates) that expose offers from the advertiser with which they are affiliated to their own network of affiliate