07 Feb Affiliate marketing
The growth and the popularity of online shopping have boosted the digital marketing and affiliate strategies. Affiliate marketing is an online marketing practice that promotes the goods and services of other businesses to earn commissions and sales leads and is considered a promising method (Dwivedi et al., 2016; Gregori et al., 2014; Magalhaes Christino et al, 2019).
Affiliate marketing is widely known and effective in EC (Duffy, 2005). Although there has been research into video advertising, all research described the mechanism of slipping and distributing video content. Since the market of video affiliate services is growing rapidly, a new type of service is needed. Moreover, new function is necessary to meet the service. However, there is little research on the necessary functions for video affiliate services.
Enterprises efficiently promote web advertising by using CGM as affiliate services. An increase in affiliate marketing may induce large numbers of transactions between players including consumers, enterprises, and providers, and may cause billing issues such as falsification.
Affiliated marketing, which is a performance-based advertising system in E-commerce (EC), has recently become popular. A holder provides information or content to an affiliate service provider (ASP) for advertising, and an affiliate displays the advertisement by way of the ASP. The advertisement often appears on affiliates’ blogs as a banner advertisement. The affiliate’s fee is determined by how many clicks are generated on a blog. As a result, an affiliate earns money, while an enterprise advertises efficiently.
The conventional mechanism of video affiliate services includes the related players: enterprise, content producer (e.g. You Tuber), video content provider (e.g. YouTube), viewer and agent.
There are two types of video affiliate services. In instream advertising, an enterprise pays a fee and sends video advertising content to a video content provider. A video content provider inserts the content into a video, which is then uploaded. Viewers watch the content and some purchase goods from the enterprise. The video content provider pays a bonus to a content producer according to the number of views. Sometimes, the bonus is paid to an agent, not directly to a content producer. On the other hand, for tie-up advertising, an enterprise negotiates the content and fee with a content producer. In most cases, an agent negotiates with an enterprise instead of a content producer. Video content is uploaded to a video content provider’s server. The following steps are the same in instream advertising.
Advertisement by video is an efficient method not only for enterprises but also for individuals. One popular Japanese fast food restaurant employed a content producer to create a video for them, and uploaded it to YouTube. The rate at which consumers bought goods increased. It shows the effectiveness of video advertising (Iwashita et al, 2018).
- Duffy DL’. (2005). “Affiliate marketing and its impact on e-commerce’ Journal of Consumer Marketing”. 22 (3), pp. 161-163.
- Dwivedi, Y.K., Shareef, M.A., Simintiras, A.C., Lal, B., Weerakkody, V. (2016). “A generalised adoption model for services: a cross-country comparison of mobile health (mhealth). Gov. Inf. Q. 33 (1), 174–
- Gregori, N., Daniele, R., Altinay, L. (2014). “Affiliate marketing in tourism: determinants of consumer trust. J. Travel Res. 53 (2), 196–
- https://viibar.com/viimaga/purpose/conversion/youtuberhtml(accessed 14 Apr. 2018).
- Iwashita, M.; Tanimoto, Sh.; Tsuchiya, K. (2018). “Framework of highly secure transaction management for affiliate services of video advertising”. 22nd International Conference on Knowledge-Based and Intelligent Information & Engineering Systems, Procedia Computer Science 126, 1802–1809.
- Magalhaes Christino, J. M.; Silva, TH. S.; Abreu Cardozo, E. A.; de Padua Carrieri, A.; de Paiva Nunes, P. (2019). “Understanding affiliation to cashback programs: An emerging technique in an emerging country”. Journal of Retailing and Consumer Services 47, 78–86.