Are Ad Networks going to kill the Affiliate Model?
 

I've run affiliate programs for many years and seems lately more and more I'm seeing both programs and affiliates shift to using Ad networks rather then working direct with each other.

I've talked to some of the bigger affiliates I know and done business with for many years and they tell me they prefer to sell ads to the ad networks rather then working with sponsors direct because they don't have the burden or worry of conversions, sites operating properly, program owners skipping out, shaving, etc.

So what is your thoughts on this?

From where I sit ad traffic has always been bought in addition to a large affiliate base.

I agree the two have always been part of a good strategy, just seems like many are shifting towards towards paid ads and away from the affiliate market.

There's 3 programs I know of, and sure there is others, that recently no longer accept new affiliates and are solely focused on buying ad traffic now. So maybe its just the circles I happen to be in, but I think the shift is coming.

affiliates do the ad buying to promote us... we dont compete with them
we still work with loads of affiliates on a daily basis

My thoughts (biased as they may be :P ) is that ad networks do provide a valuable service to the adult industry.

You list a lot of reasons affiliates prefer to do business with ad networks rather than directly with programs. I don't know about those, but I do now that filtering traffic through a proper ad network can be beneficial for both sides.

For one, advertisers get quality hits from countries that are allowed to join their program. So they zone in on their target market

Second, affiliates get to monetize the remaining traffic that would normally just be wasted.

As nick says, if traffic is bought by affiliates it is to get a higher number of people viewing content - promo content from programs so in this case, the affiliate is sort of acting as an intermediary between traffic sources and the sponsor

The problem for the affiliate is if you are profitable with your ad campaign some sponsors will just cut you out. Then you become a free market researcher for the sponsor. Being an affiliate with many programs isn't near the deal it was once was. I believe affiliates try to sell (quality) traffic to brokers because they want guaranteed income and they are distrustful of their sponsors. Don't forget all the tracking issues too. Affiliates want to be paid for ALL of their traffic.

I Use Pretty Much Only JuicyAds On All My Sites Instead Of Gambling With Shitty Conversion Ratios That You Hope Are Correct And Not Getting Bent Over On Sales From Affiliates.

I'll Take The Guaranteed Income Thanks. Have You Seen Some Of The Prices These Top Sites Are Getting? $2,000+ For 1 Ad Spot For 1 Month.

My Sites Are No Where Those Numbers Though. Wishful Thinking.

I have yet to see adult ad networks that work and do not cheat. Most programs I tried shave traffic by wide margins and payouts are very little. Google's Adsense was great while they accepted dating and escort sites. 10 to 20 bucks per click were possible 4 or 5 years ago, but it's history, unfortunately.

There's quite a number of sites that get $30-$50,000 for 1 ad spot. ;)

Tracking has become harder too, with private browsing and all that.

Wow!

I see the affiliate market thinning out for sure! But I doubt it will go away forever. Many affiliates, and it's been this way for years, are other programs. Right now there is a real limit of top affiliates and a larger portion of small small affiliates.

I think it will only get worse for "affiliates" as the traffic shifts to the tubes where ads are $10,000's per ad most times.

True, and many don't have a clue when it comes to marketing...

Yup and also when paying high PPS smart affiliates make bank buying spots on ad networks.

BTW, other than Juicy Ads, what are some of the better ad networks?

I do this for nonadult, but affiliate model still makes more $$$$$ in adult.

Not at all. Valuable link/ads linking to valuable programs are the key... If I have something very original and valuable in "affiliate system", it would be definitely better then just regular "Ad Link" ... Adlinks are about low-average ratio i think...

i love you avatar