It seems more and more advertisers are choosing so called closed keyword policies i.e. they choose not to work with specialized affiliates that employ search engine marketing (SEM) tactics to drive traffic and make money on the difference between cost per click bids and cost per order rewards.
In many markets, savvy keyword affiliates can still make nice profits. However, as marketing departments adopt a proper search strategy and acquire relevant know how, many affiliates that previously delivered search originating traffic through an affiliate programme are sacked. In the short term, they can focus on other programmes and activities. In the long term, we are seeing a migration of affiliate revenues into search. For the affiliate market it is hardly bad news. A short term loss in revenue will be replaced by true affiliate revenues as digital marketing spend grows.
The beauty of true affiliate programmes lies in a common interest in the consumer between an advertiser and an affiliate. Without a relevance between affiliate traffic and advertiser products, the model won’t generate enough return. Affiliate programmes take long time to build (not only technical tracking) and need a lot of tweaking before they can be deemed successful.
So as both demand channels continue to grow, affiliates will become more clean cut. All good.
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