E-MARKETING TOOLS 493Another smart way of linking is affi liate marketing or affi liate networking. Online retailers
oft en use this performance-based marketing in which a business rewards one or more affi liates
for each visitor brought about by the affi liate’s own marketing eff orts. Affi liates oft en use regular
advertising methods such as organic search engine optimisation (SEO), paid search engine
marketing, e-mail marketing and display advertising.^24 Th ere are several options for affi liate
compensation: commission (for every sale which is a direct result of click-through traffi c from
the affi liate’s website), pay per click, pay per lead (for every person who signs up for some-
thing), residual income (for every time a customer renews a service or purchases additional
products aft er initial click-through from an affi liate’s website) or pay per sale (for every time
a person purchases a product or service aft er clicking through an affi liate’s website).^25
Amazon.com , the online book and CD shop, does not use an affi liate network which
would take commissions from sales, but has developed its own affi liate programme and off ers a
wide range of methods of linking to its site to help improve conversion. For example, affi liates
can use straight text links leading direct to a product page, or they can use dynamic banners that
feature diff erent content such as books about Internet marketing or a search box. Amazon
created tiered performance-based incentives to encourage affi liates to sell more Amazon
products.^26 For Amazon, this affi liate network accounts for a quarter of its revenue.^27 For its
part, Amazon displays relevant Google text ads and banner ads from brands. In 2011, Amazon
revealed that worldwide media sales accounted for 17% of its total revenue. As for the rest of
its marketing approach, Amazon does not reveal much in its annual reports, but it is clear that
there is a focus on targeted online marketing, sponsored search, interactive portal advertising,
e-mail campaigns and search engine optimisation.^28Online advertising formats are more developed, videos are more sophisticated, targeting tools are more focused
and advertisers are gradually directing their communications budgets towards online advertising. It is clear that
measuring online performance has become critical. A study conducted in 2010 by PWC for IAB France highlighted
some interesting insights. For display advertising campaigns, the click-through rate remains the most widely used
indicator. But this rate says nothing about the impact of a campaign on a brand’s image or on the browsing or
purchasing behaviour. Several studies demonstrate the impact that the Web has on a brand. For example, an
analysis conducted on a campaign run by a catering firm reveals that brand identification improved by 10%. By
studying display advertising campaigns run by four advertisers from different industries, Médiamétrie Net Ratings
indicated that the purchase intent of Internet users who were exposed to these campaigns increased by 11%. In a
study of 73 display advertising campaigns reaching 100 000 Internet users, United Internet Media found that the
Internet enabled the rate of aided brand awareness to jump by 26%.
Indicators other than the click-through rate can help determine the impact that online advertising has on
branding: for example, indicators such as exposure (the actual visibility of a display ad and the average time
during which Internet users are exposed to the ad) and interaction. Several studies have revealed a close correlation
between interaction and impact on a brand’s reputation and image. By assessing the Internet users’ engagement
(browsing behaviour, depth, duration and actions) on a website, advertisers can measure the impact of their online
branding campaigns. In 2010, 8 out of 10 Internet users interviewed by Médiamétrie reported consulting a website
before purchasing a product. This behaviour is confirmed in a study conducted by comScore. The exposure to
display advertising campaigns resulted in a 10% increase in shop sales. Exposure to advertising also has an impact on
the behaviour of Internet users on the brand website. A 2009 study by the Online Publishers Association reportsRESEARCH INSIGHT
Impact measurement of online campaigns^29M15_PELS3221_05_SE_C15.indd 493M15_PELS3221_05_SE_C15.indd 493 6/6/13 8:55 AM6/6/13 8:55 AM