Affiliate Marketing in Russia: An Overview of the Current System
In Russia, there exists a popular saying that emphasizes the value of having something tangible rather than pursuing uncertain possibilities. This same principle is embedded within the realm of affiliate networks and their associated programs, such as banner ads. Unlike traditional internet advertising where you pay for mere online exposure, affiliate marketing focuses on concrete actions taken by customers, such as app downloads or product purchases from a website. Today, we delve into the operational principles of affiliate networks, highlighting their immense profitability as an advertising avenue on the internet. For further insights, explore the comprehensive material provided by Quarter Billion Agency Group.
In the realm of internet marketing, CPA-networks serve as affiliate programs where compensation is based on specific user actions, such as product purchases, app downloads, registrations, or completing questionnaires. The acronym CPA stands for “Cost Per Action,” signifying the payment structure that revolves around rewarding each action taken.
The development of the affiliate network system in Russia began seven years ago, but it was only a few years ago that we witnessed the results we know today. You might recall or even currently encounter offers like: “Enter the name of the person who influenced your purchase and receive a bonus.” This concept of “friend’s recommendation” was adopted, refined, and eventually evolved into advertisers providing their partners with individual referral links to order forms. These referral links enabled tracking of customers referred by each individual partner. This system marked the initial stride towards the establishment of affiliate networks.
Subsequently, the system expanded to encompass advertising banner networks, which significantly streamlined the advertiser’s workflow and eliminated the need for complex in-house software management programs on websites. This shift also enabled banner system personnel to address technical challenges. In addition to providing individual links to each partner, a new tool emerged—special files known as cookies. Cookies are small pieces of data sent by a web server and stored on a user’s computer. Whenever a user attempts to access the corresponding website, the browser transmits the data fragment to the web server along with the page request. With the implementation of cookies, it became possible to track and monitor the entirety of a user’s activity across the network and on the website.
The prominent affiliate systems in Russia include Yandex Direct and Google Adwords. However, it is important to note that these systems do not operate on a CPA (Cost Per Action) model, even though payment in these networks is based on clicks on your link rather than mere impressions. Currently, these systems are not equipped to handle deeper performance-based results and only guarantee payment for targeted user actions such as purchases or app downloads. Some websites, such as cpainform.ru, offer a comprehensive system of affiliate networks. This presents an advantage in terms of work efficiency, as each network operates in a specific and organized manner, making it challenging to establish agreements with all of them individually. By utilizing these resources, your primary task becomes paying attention and monitoring which network yields the best results.
Alternative websites like cpatop.ru publish rankings of systems to simplify the process for advertisers. However, Quarter Billion Agency Group advises caution when relying on such sites as the rankings may not always reflect reality due to potential manipulation through purchased positions. Our team of experts is here to assist you in navigating this landscape and identifying the perfect CPA networks for your business and product.
It is important to note that the affiliate marketing system may not be suitable for all websites, as the pay-per-action model may not align with every industry. This model is primarily beneficial for those who primarily utilize the internet as a sales channel, often associated with commodity advertising.
Advertising in affiliate networks is governed by specific conditions, including restrictions on using brand words and the exclusion of traffic from certain websites such as torrent or pornographic sites. Webmasters closely monitor the click-through rates of ads, and if the traffic generated does not result in income, they switch to another advertiser. As a result, these systems often prefer to work with large companies on a long-term basis rather than smaller ones.
Affiliate programs are in their early stages but are not stagnant; they continually evolve. For instance, many systems have implemented a special mechanism that tracks canceled or unfinished downloads. This ensures that you only pay for completed downloads of your app or file, providing a higher level of assurance.
However, the effectiveness of advertising relies on proper audience targeting. Like any system, affiliate programs have their pros and cons.
As mentioned earlier, one of the most challenging aspects of such advertising is selecting the appropriate wording for an ad, defining the target audience, and creating a user avatar for accurate targeting. Unlike a CPC (Cost Per Click) system, where money is lost if the ad is set up incorrectly, in affiliate marketing, displaying the ad to the wrong audience or conveying a misunderstood message can significantly delay the desired advertising results. Our team of experts is available to provide guidance on various aspects of affiliate marketing and assist you in properly configuring your ad.
CPA-networks in Russia have only been operational for a few years, and their performance is not yet ideal. The market still faces challenges such as the presence of fraudulent entities, a lack of clear industry leaders (aside from major search engines with their affiliate marketing programs), and difficulties in communication and resource allocation for specialists. However, those who have strategically built their progress and embraced reliable systems have already reaped profits. The affiliate networks system has gained recognition as a more effective advertising tool compared to search engine ads and SEO promotion. Despite its relative youth, the system is widely regarded as one of the best advertising tools in the Russian market.