Digital Marketing / Online Advertising / How an Advertising Network Works

An Advertising Network

An Advertising Network – How It Works

What is an Advertising, Marketing or Affiliate Network, or Affiliate Programme, or Affiliate Marketing?

Essentially these names or descriptions all refer to the same thing.  Go back just a few years ago to when the IT boom was being created and Businesses discovered the internet.  Initially the felt obliged to have their own websites even if it was just a shop window, but they soon realised that many prospective customers had formed the habit of scanning their website before deciding to buy from or work with them.  From this it became apparent that their website could be an very effective marketing tool and it would be more cost-effective than past methods.

From this the concept of an Advertising Network was soon born and it is essentially very simple.  However, there are elements that can make it slightly daunting to some people but we try to keep it as simple as possible because we feel people (generally) have more faith in understandable, transparent deals.

The Background to an Advertising Network

So this is how it works: These days it is very easy for anyone to set up their own website. Some website owners are attracted by the idea of becoming an internet entrepreneur, with or without any pre-conceived ideas or plans of how they will achieve this. Others can be professional bloggers or they do it as a hobby and/or a way of earning a little bit extra as a second income.

One of the attractive things about this type of activity is that you don’t have to be “at work” throughout working hours unlike, for example, a shopkeeper. And, of course, your website can be working 24-hours per day. So the internet can work away for you 24/7 whilst you only need to give a few moments of your time each day.

So Website Entrepreneurs and Businesses together have created a boom in internet activity. And with these two different types of online users there is a symbiotic relation:

The Merchants: The Businesses with websites. Businesses realise that they can boost their sales through their website especially if traffic is increased. Finding that their online presence can be a more cost-effective form of marketing than they have traditionally employed, they seek to maximise traffic to their website and now recognised that internet affiliate marketing provides them with the best return on their advertising spend.

The Affiliates: Internet Entrepreneurs, Bloggers, Small Businesses, Niche Websites, Hobbyists, Enthusiasts (etc etc). Now who would like to see more (or some) revenue for their efforts? The answer, “Everybody,” and some even seek to earn a living from their online undertakings. The big benefit for the affiliate is that their web presence is working for them 24-hours per day. And now, with no additional cost and very little extra time and effort, they can convert the traffic on their site into a revenue stream.

Affiliates

They are also known as Publishers as they publish adverts from others on their internet platform for which they get paid on an agreed basis.

Merchants

They are also known as Advertisers as they advertise on the Affiliate’s websites for which they pay on an agreed performance basis.

Agencies

A firm that creates, plans and handles advertising (and sometimes other forms of promotion and marketing) in a promotion for its clients.

Network Owner

This is DL Media: they organise Affiliates & Merchants, provide links & banners, run the Network and pay Affiliates.

The DL Media Marketing Network

The DL Media’s Marketing Network joins these two groups together for each other’s mutual benefit. Irrespective of whether it is known as affiliate marketing, affiliate programmes or, even, associate programmes, the network is based on agreements where an owner of a website(s) publishes (hence known as the affiliate and/or publisher) advertisements for products or services from another Business’s website who is called the Merchant and/or Advertiser.

From the Merchant information provided by DL Media, Affiliates can choose which products they wish to advertise and from which Merchants. Often Affiliates will want to choose the type of products that fit with the theme or content of their site and which, therefore, are likely to be of most interest to the traffic on their site. And to make it even better, these website owners are creating an income without actually having purchase stock or undertake fulfilment.

Payment

The advertisements that are placed on the affiliate’s site contain links to the merchant’s website for which the merchant pays the affiliate. These links are controlled and monitored by DL Media who, holding monies from the Merchant, pays the Affiliate on an agreed performance basis.

The payment is usually based upon either the number of clicks the affiliate sends to the merchant’s site or, more usually, the number of people the affiliate sends that buys something or performs some other action.

Basically, if a link on an affiliate site brings traffic to the merchant website, the merchant pays the affiliate site according to their agreement. DL Media runs the entire Affiliate Programme and undertakes the agreements between merchants and affiliates.

Types of Affiliate Deals

  • CPA: Cost per Action or Acquisition. Normally used to pay for Form Submissions, Downloads and Surveys.
  • CPL: Cost per Lead. Usually used when a “sign-up” process requires email or credit card verification.
  • CPS: Cost per Sale. Commission on Sales usually as a percentage. This is the most common Affiliate Deal and the usual one used by DL Media.
  • CPC: Cost per Click. Paid traffic irrespective of a sale.
  • CPM: Cost per Millennium. Payment per one thousand impressions.

Join the DL Media Marketing Network:

Become an Affiliate Publisher
Join as a Merchant Advertiser
Join as an Agent
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