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Google checkout may spell the end to affiliate networks like CJ, Linkshare and AffiliateBOT. If more and more merchants use google checkout, and suddenly google starts their own affiliate marketing channel, even CJ would look like a pebble. Discuss...
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You may be naive in thinking that affiliate networks shoudn't have a concen over their (google) introduction of programs such as these. Their control over the marketplace is strong and the networks will have to determine how to establish their niche to ensure they can better server their customers (both affiliates and merchants) in order to maintain a market share. There will always be a need for competition but it will be the burden of the affiliate networks to survive the compitiveness of a large players. The large players also have their weaknesses that upcoming companies can excel at if they perform correctly. Such as the ability to react to the marketplace quicker and more cost effectively. This holds true in technology as it has throughout history as markets mature.
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web-link, i think you're right. Goog is a big threat to affiliate networks, especially the more established ones like cj. But they have now bought up double-click which owns performics and it's a base for google to go for it big time. Coupled with their intensive ad network reach where google is serving ads for pennies on the CPM mostly, they may start to insert PPA ads on those non-performing sites (for their keyword targets), and instantly boost their merchant's sales (affiliate merchants).
Plus, the part about moving slowly for big players, I think google has proven to move fast even now, faster than the smaller players. All of these are giant concerns. But then networks like AffiliateBOT that is carving itself a niche may be a competitor to bigger players. With it's managed programs, it's harder for big time players to compete. |
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Survival of the fittest, huh? E-commerce will remain a dynamic playing field and will continue to evolve as it encourage more and more competitions to players. This is good in a way, because in the end the consumers are the sure winner here. But for affiliate networks like CJ, Linkshare and AffiliateBOT, this is definitely a THREAT!
Obselescense will be a common thing as new, better and effective way of doing business in the internet are introduced. To cope up with this...we need to constantly re-invent and research market niche!
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Read the following line at:-
http://code.google.com/apis/checkout..._tracking.html Please note that Google only supports pixel-based tracking solutions. If you use another solution to track page views and conversions, please work directly with your vendor to determine whether a pixel-based version is available. In addition, Google wants to ensure that conversion tracking information is only sent to reputable providers. Please check our list of approved third-party conversion tracking vendors to verify that your vendor's solution will work with Google Checkout. If you have trouble integrating third-party conversion tracking with Google Checkout, please contact checkout-api-support@google.com.
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