Affiliate Marketing: The Case of Online Content Providers in Bangladesh
Vol. 3. No. 2. March 2013 Issue. Pp. 103 – 113
Affiliate Marketing: The Case of Online Content Providers in
Farooq Hossan* and Issa Ahammad**
The purpose of this study is to explore the knowledge of affiliate marketing and investigate the views of content providers toward it in Bangladesh. Both primary and secondary data are used in this paper. This paper is exploratory in nature.
Affiliate marketing is an agreement between a merchant and content providers to promote merchant’s products or services at their websites against payment.
Here the task of content providers is not only to deliver the advertisement but also to persuade viewers to convert into customers. Findings from the …show more content…
2. Literature Review
The literature overview represents available theories and models help to understand affiliate marketing as well as the activities of content providers. Among the different scholars on affiliate marketing Hoffman and Novak (2000), Fiore (2000), Gallaugher et al (2001), Chaffey (2003), Libai et al. (2003), Duffy (2005), Donna McCarthy (2009) are famous who have the theoretical contributions on such type of marketing. Hoffman and
Novak (2000) claim that by employing affiliate marketing, merchants can let thousands of independent websites, called also content providers, to display ads for its products
Hossan & Ahammad and only pay them when the ad would actually lead to a sale. In affiliate marketing advertising costs move from fixed to variable costs, which can facilitate allocating money to advertising. Fiore (2000, p. 300) remarks that specific employment of affiliate marketing are storefronts where content providers can sell other company’s products or services at their own branded website using technological solution provided by the advertiser. He adds that in affiliate marketing particularly, advertisers can choose any one from three compensation models in order to pay commissions to the content providers such as Pay per sale (PPS), Pay per lead (PPL) and Pay per click (PPC).