Historic Development

There has been a huge increase in the application of affiliate marketing since its inception. The e-commerce website, which involves using the internet to buy and sell products or services, was regarded solely as a marketing toy in the early days of the Internet. However, such a medium gradually became an integral part of the overall business plan and, in some cases, grew out of all proportion to the existing offline business.

It has been suggested that, for the United Kingdom alone, the total sales income by way of affiliate networks in 2006 was £2.16 billion. Further, in 2005, the estimates were £1.35 billion in sales. Further, a research group has estimated that, in 2006, affiliates worldwide sales would reach US$6.5 billion from a variety of sources.

These may include retail, personal finance, gaming and gambling, travel, telecom, education, publishing, and forms of lead generation other than contextual advertising programs, such as Google AdSense.

Contextual advertising refers to advertising that is targeted to the specific individual visiting a website, or page within a website. AdSense has become a popular method of placing advertising on a website since they are less intrusive than most banners ads, and the content of the advertisements is such that it is in harmony with that portrayed by the website.

At present, the sectors that utilise affiliate marketing most effectively include adult, gambling, and retail. In fact, research has indicated that the mobile phone, finance, and travel sectors are the three sectors forecast to exhibit the greatest growth

Other sectors that are forecast to be up-and-coming include entertainment, and gaming in particular, and Internet-related services, especially broadband. Also, affiliate solution providers expect to see increased interest from business-to-business, which describes commerce transactions between businesses as opposed to that between businesses and other groups, marketers and advertisers in using affiliate marketing as part of their mix.

Web 2.0

Internet technology and web design is ever changing, and such developments are at the heart of "Web 2.0." As a result, communities and hosted services have evolved based on the internet, such as:

Social-networking, by which people who share interests and activities, or who wish to interact with other like-minded individuals, form a community. Most of these services are based on the internet and offer numerous ways for users to interact, such as e-mail and instant messaging services.

Video sharing, allows anyone to upload video clips to an internet website. The hosting service will store the video on its server, and make available different codes so that others will be able to view the video.

Wikis, is a page or collection of web pages in which anyone who views it will be able to add to or modify the content. They are often used to create websites involving multiple inputs, or to act as a basis for community websites.

Blogs is a particular type of website. It is normally run and maintained by an individual, with regular additions of commentary, descriptions of events, or other material that is deemed relevant, such as graphics or video.

Folksonomies is a method of creating tags to annotate content and subsequently place in categories.

Such developments as these have flowed across into affiliate marketing. Merchants are now able to become closer to their affiliates and this has enabled both parties to interact more easily.

Affiliate – How To Succeed

Author's Bio: 

Peter Radford writes Articles with Websites on a wide range of subjects. Affiliate Articles cover Background, History, Methods of Compensation, Websites, Various Issues.

His Website contains a total of 146 Affiliate Articles, written by others and carefully selected.

View his Website at: affiliate-how-to-succeed.com

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