How do affiliate programs differ from pay-per-click banner advertising?
Pay-per-click banner ads are usually short-term relationships where there is a buyer (of the space – usually specific space) and a seller. The banners are similar to traditional adverts on commercial television. Much recent research shows response rates from banners falling (average click through rates are now less than 0.5%). Affiliate programs are an ongoing relationship between an affiliate and a merchant. In addition to an ongoing relationship, the key differences are relevance and control. Relevance – although affiliate programs use banners and buttons, these are placed next to relevant content. Typically the product sold by the merchant ties in closely with the affiliates website content (so, for example, TravellersSOS typically partners with travel-related websites). Affiliate programs also use links and ‘personal’ recommendations, which are stronger because the recommendation comes from a ‘relevant’ website. Affiliate programs can therefore generate higher click-throughs, highe
