Product category:
Affiliate marketing
News Release from: R.O.EYE | Subject: super-affiliates
Edited by the Marketingservicestalk Editorial
Team on 26 September 2007
R.O.EYE tips super-affiliates to take
over search
The future of Pay-Per-Click (PPC) search agencies is in jeopardy, according to Mark Kuhillow, managing director of R.O.EYE.
Restrictions in agency commissions are already being imposed on search agencies and Google's Cost-Per-Action proposal further emphasises Google's desire to trade directly with advertisers Affiliates will step into the space between Google and PPC search agencies, to offer risk-free search bidding alongside payment-by-results, as performance marketers
This article was originally published on Marketingservicestalk on 3 Aug 2007 at 8.00am (UK)
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"The move to end agency commissions will mean a dramatic change in search remuneration models and a need for search agencies to adapt their business models," warned Kuhillow.
"At the same time, affiliates are offering marketers an opportunity for risk free search marketing".
PPC commission is at risk.
Google has now announced that is Best Practice Funding (BPF) payment model will cease at the end of 2008, and search marketers are already starting to feel the pinch in their commissions.
Together these changes will see search marketing brought in-house, managed on a fee basis or outsourced to affiliates.
Affiliate PPC models do not rely on search commission and have proven to be hugely successful.
"Using super-affiliates for search management will be a big draw for marketers wanting to tie search marketing closer to results-based models," said Kuhillow.
With the affiliate industry reaching the GBP2 billion threshold in 2006, advertisers and marketers alike are looking for closer relationships with super-affiliates - accounting for 20 per cent of the affiliate market but responsible for 80 per cent of the volume.
Super-affiliates are already making moves to develop stronger client facing structures.
As brands demand closer relationships with affiliates, they need a higher level of account management services.
"And super-affiliates are more than capable of picking up the reins, while search agencies come to grips with big structural changes ahead," concluded Kuhillow.
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