Moose on the Loose

Thinking out loud based on the posting I just read on the A4U Forum.

If Affiliate A places a merchant banner on a their site (earning commission via CPA basis only), as we know banners notoriously have low CTR’s. Visitor(s) remember the brand whilst on your site, a later sequence of events ensues, the Visitor(s) remembers the brand in the banner & types name into a search engine. The Visitor(s) either go via natural listings or merchants adverts. Affiliate A receives no remuneration (gets no commission) for displaying ads.

Perhaps there is a call for there to be a default CPM, payment per 1000 impressions, in any merchant’s banners displayed on an affiliates site.

Another scenario, Affiliate A does the pre-sell with a Banner on their site. Again a later sequence of events follows, the Visitor(s) remembers the brand in the banner & types name into a search engine. The Visitor(s) this time goes through an affiliate link belonging to a privileged affiliate who is part of a closed bidding group. Why should Affiliate A bother promoting the merchant in the first place?

Maybe it’s become a time where there shouldn’t be any more free brand exposure for merchants via banners & brand logo’d creatives & affiliates to be fairly remunerated for displaying these.

I will have to ponder on this some more, but we have generally been reluctant or not displayed banners at all for the aforementioned reasons as well as the fact banners generally don’t have any Whoopee Doo factor … btw … have you ever noticed in NMA how they get so excited when a merchant has created a new 120×60 creative & give it a quarter page spread … Whoopee “Bloomin” Doo … anyhow instead networks & merchants should be focusing on more up to date technology, like what we have been requesting for a significant period of time like full API Product Feeds to easily create price comparison / product search sites & Streaming Media Ads like TV Commercials. The industry is just lagging even further behind.

Perhaps the traditional model of CPA should not necessarily be phased out, but evolve into hybrid commission structures comprising of two or more of the following elements … CPA. CPC, CPM & PPL & PPCall, thus fairly remunerating affiliate efforts for displaying banners & certainly applying to poor converting merchants.

P.S. I have just had this link passed to me from Fraser … Cheers Mate … for In Stream Video Advertsing Click Here

There needs to be more innovation from Networks, Perhaps more will follow suit, following like Lambs. Rather than in 2007 being left like Lambs to the Slaughter.
Note:

CPA – Cost (Payment) Per Acquisition (Sale)
CPC – Cost (Payment) Per Click
CPM – Cost (Payment) Per 1000 Impressions of a Displayed Banner. M represents the Roman numerial for 1000,
PPL – Paid (Payment) Per Lead (Registering or Application)
PPCall – Paid (Payment) Per Call (Telephone Call)

This entry was posted on Tuesday, November 28th, 2006 at 3:12 PM and is filed under Affiliate Marketing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.