Affiliate marketing is essentially a sales based display advertising model.

Due to the nature of information that can be gathered online, if you look at the analogy of magazine, essentially websites are like magazines, or news papers with a following of readers, the more readers the more the magazine is worth from an advertising perspective. However this never takes into account the actual conversion, its all well and good seeing an ad, but for a company, the bottom line is conversions, how much are people buying has it actually and obviously increased sales volume and ultimately revenue?

Unlike standard display advertising when you look at affiliate marketing, you can monitor the performance of a campaign extremely accurately, for a marketing manager this is a bit of a dream. You can track impressions, clicks, and sales, in some cases even client retention. Meaning that you can accurately gauge return on investment and sales revenue generated by this particular advertising channel, to further add to the benefits you are only paying when a campaign actually converts, which means that a company’s marketing budget is spent on results actual deliberate conversions.

All this adds up to an extremely accurate and highly targeted marketing model, that delivers acutal quantifiable results.