“Google launches value click killer”
We knew it would happen, we have been speaking about it for ages and now the headlines read “Google launches value click killer”. Google are in the process of testing affiliate marketing and it’s by invitation only. It appears that google are testing the CPA model as I type. The implications are enormous if they roll with this one, if you think about their reach in terms of a global perspective, access to resources and wow what a database of advertisers and publishers (affiliates, using adsense) So who are the winners and losers?
After a few years of turning the screws on affiliates its now the turn of the affiliate networks to feel the squeeze. What the affiliate networks can provide for Merchants/Advertisers in terms of brokering ppc and cpa deals via their database of publishers / affiliates, google will be able to offer the entire package direct to their clients offering a one stop holistic approach. Im sure favouritism with regards to their clients and organic search will be the norm, pushing clients from the other affiliate networks down in search listings and paid search. Potentially, if google run with this then the headline, maybe closer to reality then we think, or will it?Affiliate Marketing is by no means straight forward, it has no transparent fixed formula like that of adsence or adwords. The mechanics of affiliate marketing incorporates a myriad of variables to get to the end results. Affiliate marketing has historically been built on the foundations of simple relationship building where by direct interaction between the three players (Affiliates, Merchants & Networks) plays a crucial, no…critical role in driving sales or leads.
Affiliate marketing has never been conventional which is why its been perceived as the poor relative to traditional/tenancy based advertising, traditional which carries higher risks for the merchant and no risk for the supplier, its simple metrics which either works or doesn’t. Affiliate marketing has always been about communication and brokering deals with a heavy emphasis on social interaction. Some of us have spent years developing strong, loyal relationships built on reputation. Loyalty and cash “rules ok!”. We have years of tried and tested methods, what works, what doesn’t work, in other words, there is a community, all be it a little fragmented but it does exist and there are common factors all working together.
So how will google be able to tap into this unconventional form of marketing? will google be networking? How will google be able to handle those relationships that require nurturing, hand holding and building trust? I would even go as far as to say, the day to day management of an affiliate program is not straight forward. If an advertiser does not pay, do google switch them off? Will google chase payment on behalf of the affiliates? Will google have row upon row of affiliate managers? Here in the UK there is such a shortage of affiliate managers, do they know what an affiliate manager does? How will google be able to justify that just chatting to a key strategic partner on msn could potentially bring in revenue.
I personally, cant see this corporate giant embrace this unorthodox approach to bringing in revenue. Affiliate marketing is about haggling and cutting deals, I would pay good money to listen to google man/woman broker a deal. But maybe I am wrong simply by the sheer volume of people and resources available to google. Maybe, google will reach out and come to our affiliate get to gethers and share a pint /pitcher and roll up their sleeves and prepare to get dirty.
The real winners in all of this, it could be argued, could be some of the affiliates, for the last year or so the bashing that affiliates have received through organic listings has been harsh and with the shift in goal posts with each algo change, I am sure I have not been alone in thinking, where are google’s competitors? I am hoping if google roll out this CPA model, this opens up the playing field for some of those affiliates that were affected by the ever changing SERPS.
Do we have cause for concern? No I think, is the real answer. Affiliate Networks will always offer a more a more personal and technology lead touch for their clients, simply by the number of clients and ability to evolve more quickly. Affiliates will always work with networks and their clients if the conversions are good and the money is there. Networks with perhaps the exception of CJ are small enough to be able to twist and turn and adapt.
My final thoughts on this, it’s all “ifs”, “buts” and “ands”, its too early to tell what or where google will go with this, but the thing that has come out from all of this is, another leap forward for the affiliate marketing industry. The fact that Google are testing affiliate marketing is perhaps what the industry needed to endorse this pay on performance marketing model, we knew it always worked, “hey google what took you so long?” :0)
If you enjoyed this post, please consider to leave a comment or subscribe to the feed and get future articles delivered to your feed reader.
Nice summary of the situation Jess and you make a lot of points that I agree with.