I do believe performance based marketing has a bright future. For anyone involved in advertising it is very attractive to pay per sale, per lead etc. in stead of just buying reach without any further guaranties.

Publishers have the opportunity to place ads while sharing the revenue. Customers get to see more relevant ads because ads that don’t pay will disappear.

Affiliate networks will however face a hard time to stay relevant. As tracking software will become free and available for everyone. Affiliate networks will have to compete with affiliate managers within the advertising companies to find and built relations with relevant publishers.

Why would you still pay the affiliate network if you can do it yourself.

Google is already offering Pay per Action advertising in beta and I guess it is just a matter of time before Google starts offering this tracking solution for non-Google ads as well (similar to Analytics campaign tracker). By then anyone can start his/her own affiliate program for free.

If the tracking software is for free. Affiliate networks will need to show their relevance by delivering better tracking and/or better publishers then we can find ourselves. In this situation they can’t afford to charge monthly fee’s. They will probably have to work performance based themselves.

This entry was posted on Tuesday, June 17th, 2008 at 2:43 pm and is filed under Affiliate, innovation. 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.