81% of affiliate programs today use revenue share (Cost per sale) as compensation method. The remaining 19% use Cost Per Action. [2].
The use of Pay per click and Pay per impression (CPM) in traditional affiliate marketing is far less than 1% today and negligible.
CPM requires from the publisher only to load the advertising on his website and show it to his visitors in order to get paid commission, while CPC requires one additional step in the conversion process to generate revenue for the publisher. Visitors must not only made aware of the Ad, but also pursue them to click on it and visit the advertisers website.
CPC used to be more common in the early days of affiliate marketing, but diminished over time due to Click fraud issues that are very similar to the click fraud issues modern Search engines are facing today.Contextual advertising, such as Google AdSense are not considered in this statistic. It is not specified yet, if contextual advertising can be considered affiliate marketing or not.
Pay per click is predominant as compensation model for Pay per click search engines and their contextual advertising platforms, while Pay per impression is the predominant compensation model for display advertising. CPM is used as compensation method by Google for their AdSense/AdWords feature "Advertise on this website", but an exception in search engine marketing.
While search engines only recently started experimenting with compensation structures of traditional affiliate marketing, such as Pay per action/CPA [3], they did display advertising, offering CPA as early as 1998 [4]. By the end of 2006 did the share of the CPA/Performance pricing mode (47%) catch up with the CPM pricing mode (48%)[5] and will become the dominant pricing mode for display advertising, if the trend of the last 9 years will continue in 2007
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