Affiliate marketing has become a significant part of the digital marketing landscape, but its roots can be traced back to the late 1980s. It has evolved and adapted to the changing digital environment, becoming a multi-billion dollar industry today. Let’s take a closer look at the history and evolution of affiliate marketing.
I. The Early Days
The concept of affiliate marketing was first popularized by William J. Tobin, who launched the Prodigy Network in 1989. This network allowed businesses to promote their products on websites and pay the site owners a commission for each sale that resulted from their promotion. This laid the foundation for the modern affiliate marketing programs.
Missy Ward and Shawn Collins were key players in the growth of affiliate in the 1990s and early 2000s. They founded Affiliate Summit, which is now the largest affiliate marketing conference in the world. Affiliate Summit meets twice a year, once on the East Coast in New York City and once in Las Vegas, NV, respectively.
II. Rapid Expansion
In the mid-1990s, Amazon launched its own affiliate program, Amazon Associates, which played a crucial role in popularizing affiliate marketing. Other pioneering companies, such as CDNow and PC Flowers & Gifts, also introduced their own affiliate programs, leading to a rapid growth in the industry.
III. Technology’s Influence
The evolution of technology has been a driving force behind the expansion of affiliate marketing. The rise of internet usage, e-commerce, and various digital platforms has provided affiliates with a wide range of promotional opportunities, from websites and blogs to social media and email marketing. As a recent example of the interconnectedness of affiliate marketing and technology, Lab6 Media‘s Chief Technology Officer, Joel Garcia, recently launched a new chrome extension called “Affirmative.” Specifically, Affirmative helps recruiters identify publishers more easily by making visible affiliate links on their websites.
IV. Development of Tracking and Analytics
Advancements in tracking and analytics tools have also been instrumental in the evolution of affiliate marketing. In the early days, tracking conversions and attributing them to specific affiliates was a challenge. However, with the development of sophisticated tracking software and analytics platforms, businesses are now better equipped to measure the performance of their affiliate programs and optimize their strategies.
V. Shift to Performance-Based Marketing
Affiliate marketing represents a shift towards performance-based marketing, where advertisers pay affiliates only for the results they deliver, such as a sale, lead, or other predetermined actions. This model has proven to be cost-effective and flexible, leading to its widespread adoption across various industries. Lab6 Media is an example of a performance marketing agency. We don’t get paid for clicks or eyeballs, but only when our clients earn actual revenue.
VI. The Rise of Influencer Marketing
In recent years, the lines between affiliate marketing and influencer marketing have become increasingly blurred. Influencers, with their large and engaged audiences, have become valuable partners for brands looking to leverage affiliate marketing to boost sales and brand awareness. For example, Shopify’s Collabs, launched in the last few years, is an influencer affiliate platform.
VII. The Future of Affiliate Marketing
As we look to the future, the landscape of affiliate marketing is likely to continue evolving. Advances in artificial intelligence, machine learning, and automation are set to revolutionize how advertisers and affiliates interact, opening up new possibilities for personalized and targeted marketing campaigns.
In conclusion, affiliate marketing has come a long way since its inception. What started as a simple referral system has grown into a dynamic and complex ecosystem. Affiliate plays a pivotal role in the digital marketing industry. Furthermore, as technology continues to advance and consumer behavior evolves, affiliate marketing is projected to become an even more powerful and influential channel. Every online business looking to grow their online presence and drive sales should have an affiliate program!
Reach out to Lab6 Media to inquire how we can help boost or launch your program today!
