Comments on: Musings on the Market Size of Affiliate Marketing and Contextual Marketing http://www.revenews.com/affiliate-marketing/musings-on-the-market-size-of-affiliate-marketing-and-contextual-marketing/ Discussion of Online Marketing, SEM, Social Media, Mobile and Video, Micro-Content, and Affiliate Marketing Thu, 09 Feb 2012 21:59:00 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Beth Kirsch http://www.revenews.com/affiliate-marketing/musings-on-the-market-size-of-affiliate-marketing-and-contextual-marketing/#comment-1031 Beth Kirsch Fri, 17 Feb 2006 16:40:35 +0000 http://revenews.contentrobot.com/?p=218#comment-1031 OK, OK, I got a some IM's on this the morning. First when i dicussed CPA network revenue, I meant revenue minus commissions, and that is where the $300 million came from. Seems due to big picture accounting reasons, you can't seperate revenue from commissions with CPA networks because of the way accountants look at lead gen. Never thought about this before. Thanks for pointing it out. So, perhaps however, ValueClick defined affiliate marketing, it did not include CPA networks. Cheers, Beth OK, OK, I got a some IM’s on this the morning.

First when i dicussed CPA network revenue, I meant revenue minus commissions, and that is where the $300 million came from.

Seems due to big picture accounting reasons, you can’t seperate revenue from commissions with CPA networks because of the way accountants look at lead gen. Never thought about this before. Thanks for pointing it out.

So, perhaps however, ValueClick defined affiliate marketing, it did not include CPA networks.

Cheers,

Beth

]]> By: Sal http://www.revenews.com/affiliate-marketing/musings-on-the-market-size-of-affiliate-marketing-and-contextual-marketing/#comment-1030 Sal Fri, 17 Feb 2006 10:27:44 +0000 http://revenews.contentrobot.com/?p=218#comment-1030 Are there any other reports out there such as AffStat that deal with this topic? Did MarketingSherpa put something together from the Summit? Are there any other reports out there such as AffStat that deal with this topic? Did MarketingSherpa put something together from the Summit?

]]> By: Beth Kirsch http://www.revenews.com/affiliate-marketing/musings-on-the-market-size-of-affiliate-marketing-and-contextual-marketing/#comment-1029 Beth Kirsch Fri, 17 Feb 2006 07:14:22 +0000 http://revenews.contentrobot.com/?p=218#comment-1029 It is an interesting discussion...I agree I think it's ValueClicks defination is only network fees because if you add CJ's revenue and affiliate commissions, I'm sure it's well over a $1 billion. CPA networks tend to talk about revenue incluing affiliate commissions, but LinkShare, CJ and perfomics do not. I think if you add up the all of the revenue of CPA networks, it's hard for me to believe it's much north $200 mm. Maybe it's $300 mm but I doubt it. Then there are the European and Asian Markets, but I know little about those. I agree, we don't have the whole picure and it is definately an emerging market, but I'm not sure valueclick was that far off in what the market is today. The thing that is great about this industry is you just have no idea where we will be in 5 years. :) Thanks for the interesting dialogue. Beth It is an interesting discussion…I agree

I think it’s ValueClicks defination is only network fees because if you add CJ’s revenue and affiliate commissions, I’m sure it’s well over a $1 billion.

CPA networks tend to talk about revenue incluing affiliate commissions, but LinkShare, CJ and perfomics do not.

I think if you add up the all of the revenue of CPA networks, it’s hard for me to believe it’s much north $200 mm. Maybe it’s $300 mm but I doubt it. Then there are the European and Asian Markets, but I know little about those.

I agree, we don’t have the whole picure and it is definately an emerging market, but I’m not sure valueclick was that far off in what the market is today.

The thing that is great about this industry is you just have no idea where we will be in 5 years. :)

Thanks for the interesting dialogue.

Beth

]]> By: Aaron Carr http://www.revenews.com/affiliate-marketing/musings-on-the-market-size-of-affiliate-marketing-and-contextual-marketing/#comment-1028 Aaron Carr Thu, 16 Feb 2006 22:39:31 +0000 http://revenews.contentrobot.com/?p=218#comment-1028 I must respectfully disagree with Valueclick's evaluation. Is the number in terms of network fees, overall revenue or something else? Furthermore, are CPA affiliate networks such as Net Margin or others similar considered in this market valuation? In addition, while I believe it will be difficult to find huge players that don't have affiliate programs(Ikea for example), there are still some pieces left to fill out the entire pie before all is said and done. I appreciate the dialogue. I must respectfully disagree with Valueclick’s evaluation. Is the number in terms of network fees, overall revenue or something else? Furthermore, are CPA affiliate networks such as Net Margin or others similar considered in this market valuation? In addition, while I believe it will be difficult to find huge players that don’t have affiliate programs(Ikea for example), there are still some pieces left to fill out the entire pie before all is said and done. I appreciate the dialogue.

]]> By: Beth Kirsch http://www.revenews.com/affiliate-marketing/musings-on-the-market-size-of-affiliate-marketing-and-contextual-marketing/#comment-1027 Beth Kirsch Thu, 16 Feb 2006 11:41:23 +0000 http://revenews.contentrobot.com/?p=218#comment-1027 Here is where I buy ValueClick's number. CJ's revenue is $100 million, lets say LinkShare is similar. Then add in Performics, the European and Asian markets, CPA Networks, and the smaller players and I think you end up at about $400 to $500 mm. Now, if you define players like bluelithum, Fast Click etc as affiliate marketing (which I do btw) and ValueClick does not I think) it's a different ball game. Here is where I buy ValueClick's number. CJ's revenue is $100 million, lets say LinkShare is similar. Then add in Performics, the European and Asian markets, CPA Networks, and the smaller players and I think you end up at about $400 to $500 mm.

Now, if you define players like bluelithum, Fast Click etc as affiliate marketing (which I do btw) and ValueClick does not I think) it's a different ball game.

]]> By: Sal http://www.revenews.com/affiliate-marketing/musings-on-the-market-size-of-affiliate-marketing-and-contextual-marketing/#comment-1026 Sal Thu, 16 Feb 2006 11:13:40 +0000 http://revenews.contentrobot.com/?p=218#comment-1026 I'm always leary of numbers being tossed around like that. We can only speculate how ValueClick came up with that number. I'm pretty sure the entire space is much larger even if you dont account for Porn, Pills and Casino (great acronym by the way). Well thats my 2cents for the day. I'm always leary of numbers being tossed around like that. We can only speculate how ValueClick came up with that number. I'm pretty sure the entire space is much larger even if you dont account for Porn, Pills and Casino (great acronym by the way).

Well thats my 2cents for the day.

]]> By: Beth Kirsch http://www.revenews.com/affiliate-marketing/musings-on-the-market-size-of-affiliate-marketing-and-contextual-marketing/#comment-1025 Beth Kirsch Thu, 16 Feb 2006 07:45:50 +0000 http://revenews.contentrobot.com/?p=218#comment-1025 I thought about that too when I wrote the piece. I do think ValueClick has a narrow view of affiliate marketing such as no PPC (Porn, Pills, Casinos), but I also think that huge advertisers like eBay and Dell pay very little for their tranactions in the networks and that helps keep the market size low. The head of eBay's affiliate marketing dept said two years ago that they pay their top 50 affiliates over a million a month each. The question is what does Ebay pay CJ? Also, how much does Amazon pay out? ValueClick will never get that biz and I bet it's also not included in the market sizing. Hope that helps clear this up some. I thought about that too when I wrote the piece.

I do think ValueClick has a narrow view of affiliate marketing such as no PPC (Porn, Pills, Casinos), but I also think that huge advertisers like eBay and Dell pay very little for their tranactions in the networks and that helps keep the market size low.

The head of eBay’s affiliate marketing dept said two years ago that they pay their top 50 affiliates over a million a month each. The question is what does Ebay pay CJ?

Also, how much does Amazon pay out? ValueClick will never get that biz and I bet it’s also not included in the market sizing.

Hope that helps clear this up some.

]]> By: Peter http://www.revenews.com/affiliate-marketing/musings-on-the-market-size-of-affiliate-marketing-and-contextual-marketing/#comment-1024 Peter Thu, 16 Feb 2006 06:45:44 +0000 http://revenews.contentrobot.com/?p=218#comment-1024 The affiliate marketing segment is just $400-500 million? I think a zero fell off their slide show or they have a very narrow view of affiliate marketing .vs. Marketing Sherpa's estimate that affiliate commissions alone in 2006 will hit $6.5 billion. The affiliate marketing segment is just $400-500 million? I think a zero fell off their slide show or they have a very narrow view of affiliate marketing .vs. Marketing Sherpa’s estimate that affiliate commissions alone in 2006 will hit $6.5 billion.

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