Current Trends in Internet Marketing

3941 Words Oct 9th, 2012 16 Pages
Current Trends in Internet Marketing
Angela-Mihaela MASTACAN
George Bacovia University, Bacau, ROMANIA Key words: internet marketing, electronic commerce, trends Abstract: Internet marketing uses the power of electronic commerce to sell and market products. Electronic commerce refers to any market on the internet. Electronic commerce supports selling, buying, trading of products or services over the internet. Internet marketing forms a subset of electronic commerce. With the outburst of internet growth, internet marketing has started becoming very popular. It is said that Internet marketing first began in the beginning of 1990 with just text-based websites which offered product information.

With growth in internet, it is not just selling
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He would offer a affiliate marketing program say X affiliate marketing program. They would provide a link or a banner advertisement to an affiliate who becomes their member. Once the affiliate is a member he can put up that link on his website. Once somebody makes a sale through his website, the merchant can track which affiliate was responsible for that sale and pay a suitable commission to them. This is the most common affiliate marketing scheme available. This is typically called pay per sale or pay per action. But some of the companies want results for survey or want leads generated for them. They take the help from affiliates and pay them a commission when ever an affiliate gets a survey form filled through his site or generates a lead. This is typically called pay per lead. (Libai Barak et al 2003) in his publication compared why these schemes pay per lead and pay per action prevail and under what conditions one is advantages over the other. The authors find that pay-per lead is more profitable when a merchant and affiliate have a separate deal with each other. Merchant negotiates the deal in this case. In such a scenario, pay-per-conversion is not optimal for the affiliation alliance because it leads to suboptimal pricing by the merchant. On the other hand, pay per lead is less profitable than pay-per-conversion for a merchant if he works with a large number of affiliates such that all of them are under the same terms. It is less profitable because of the

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