As Affilicon Israel draws near, we approached Peles to discuss the interaction between the two marketing channels - Results-based online advertising & Affiliate marketing:
§ Q: How do affiliate marketing and results- based marketing co exist with the more traditional ways?
Peles: Affiliate marketing is one segment within the broader scope of result based advertising. They in many cases compete for budget, although, in our opinion they shouldn't. More traditional ways should deal with what is called branding, and result base should deal with direct acquisitions. More sophisticated advertisers, transforming both their budgets to results - they just define the goals differently, but measure both and optimize both budgets.
§ Q: What is more effective affiliate or SEM?
Peles: It is like asking what is more important, eating or drinking, for successful online advertising programs both should be effective, it is a matter of volume, competition and market.
Q: How does the economic situation affect affiliate and result based marketing?
Peles: With the idea in mind that the world will continue to exist, people will continue to consume, result based advertising will gain ,market share over more traditional media spends. Budgets have started to shift towards places where Invested Euros are marked with their related income. In other words, acquisition and direct response campaigns are the last to be cut as they are considered to be revenue generating campaigns.
