Growth of Affiliate Programs in the Philippines
An affiliate program is a form of digital marketing campaign that started in the Philippines in the mid 2000’s when internet penetration is at its height in the country. According to internetlivestats.com, in 2002, there were roughly 3.5 million internet users in the digital marketing Philippines Philippines brought by 75% user growth based on the previous year. Significantly, in 2010, there were already 23.3 million internet users in the country during when the internet penetration rate is 25%.
Before affiliate marketing was internet advertising. Companies partner with websites that can attract audiences that exactly fits to their target market. With a fixed fee ranging from 2,000 to 20,000 pesos, a company can advertise its products and services in a website via banner ads, text plug exposure arrangements and banner ad rotation system.
With the introduction of AdSense and AdWords by Google to the global audience, web publishers and independent bloggers in the country were given better opportunities in earning online revenues. The launching of these web-based products also marked the introduction of a newer advertising model – the affiliate program.
The first few companies that introduced affiliate programs to millions of Filipino digital marketers were Google, Amazon and eBay. Google AdSense became a popular internet advertising program in 2006, the same year when Google also launched their Blogger.com platform to the world. A blogger, an individual or group who write blogs and publish them on website, can own a blog site by spending little to nothing since registering an account with Blogger.com is totally free. In just a few steps, Google AdSense affiliate banner ads can be made to appear into the blog site. At this point, the blogger can then start generating income out of blogging.
Amazon established its affiliate programs in the Philippine’s internet market between 2004 and 2006. eBay, one of the largest auction sites today, made its entry in the later part of the decade when it introduces eBay Partner Network, Selling Instructor Program and Trading Assistant Program. On the same year, WordPress, another popular blogging platform, became an alternative to Blogger.com by many Filipino bloggers and web publishers.
Boom of Digital Marketing
The boom of digital marketing in the Philippines was observed from 2008 to 2012, the period when internet access grew by over 500%. New players in the affiliate marketing sector emerged. Some of the well-known companies that offered their affiliate programs that time were Lazada, ClickBank, and Zalora. Zalora’s affiliate program pays its affiliates with commissions ranging from 6% to 16% of every product sold. Lazada has a category-based commission structure: 5% for electronics, 8% for non-electronics, and 10% for fashion products. ClickBank, a US-based online retailer and one of the leaders in digital eCommerce, began to introduce its affiliate program in the Philippines in 2009.
Impact of Social Media and Mobile Web