Origins in the 1990s
Affiliate marketing got its start in the mid-1990s:
- In 1989, William J. Tobin founded PC Flowers & Gifts, which launched the first online affiliate program in 1994. By 1995, it had over 2,500 affiliate partners.
- In 1996, Amazon launched its Associates program, which allowed website owners to earn commissions by linking to Amazon products. This helped popularize the affiliate model.
- In 1998, Commission Junction (now CJ Affiliate) was founded, introducing the cost-per-click model for affiliate payments.
Growth in the 2000s
The 2000s saw rapid expansion of affiliate marketing:
- Google AdWords launched in 2000, giving affiliates a new way to drive traffic through PPC advertising.
- Large affiliate networks like LinkShare (now Rakuten Advertising) emerged, connecting advertisers and publishers.
- Tracking technology improved, allowing for more accurate attribution of sales and commissions.
Recent Developments
In the past decade, affiliate marketing has continued to evolve:
- Social media and influencer marketing have become major channels for affiliate promotions.
- Mobile optimization has become crucial as more shopping happens on smartphones.
- There’s an increased focus on transparency and disclosure of affiliate relationships.
- Affiliate marketing has grown into a multi-billion dollar industry, with estimates putting it at $12 billion globally.
Key Innovations
Some important innovations that shaped affiliate marketing include:
- The development of cookies to track user activity across sites
- Affiliate networks to connect advertisers and publishers
- More sophisticated tracking and attribution models
- Integration with social media and influencer marketing
Today, affiliate marketing remains a major revenue stream for many online businesses and publishers. Its ability to adapt to new technologies and channels has allowed it to thrive for over 25 years.