The effect of social media and advertising activities on affiliate marketing

Abstract

The study uses data from a service company to analyse if social media and advertising activities affect affiliate marketing results. The dataset spans a six month period, registering 611,081 ad impressions, 15,082 clicks, and 2,672 social media messages. The results from affiliates using social media are analysed and then compared to the results of affiliates not using social media. The study adds to the affiliate marketing literature by analysing the used ad media, commission amount, length of partnership, and business focus as campaign variables. Further, it adds to the multichannel literature: microblogging social media activities of affiliates positively affect the number of ad impressions and to a lesser extent the number of affiliate leads. As social media activities of affiliates affect the results of the affiliate marketing campaign, merchants may include social media data to get a more detailed picture of affiliate activities and performances.