The concept of affiliate marketing on the Internet was conceived of, put into practice and patented by William J. Tobin, the founder of PC Flowers & Gifts. Launched on the Prodigy Network in 1989, PC Flowers & Gifts remained on the service until 1996. By 1993, PC Flowers & Gifts generated sales in excess of $6 million per year on the Prodigy service. In 1998, PC Flowers and Gifts developed the business model of paying a commission on sales to the Prodigy Network.
Affiliate marketing overlaps with other Internet marketing methods to some degree, because affiliates often use regular advertising methods. Those methods include organic search engine optimization (SEO), paid search engine marketing (PPC – Pay Per Click), e-mail marketing, content marketing, and (in some sense) display advertising. On the other hand, affiliates sometimes use less orthodox techniques, such as publishing reviews of products or services offered by a partner.
In the case of cost per mille/click, the publisher is not concerned about whether a visitor is a member of the audience that the advertiser tries to attract and is able to convert, because at this point the publisher has already earned his commission. This leaves the greater, and, in case of cost per mille, the full risk and loss (if the visitor cannot be converted) to the advertiser.
Although average Internet traffic has settled into a steady growth pattern, busy hour traffic (or traffic in the busiest 60 minute period of the day) continues to grow more rapidly than average Internet traffic. Service providers plan network capacity according to peak rates rather than average rates. Between 2017 and 2022, global busy hour Internet use will grow at a CAGR of 37 percent, compared with 30 percent for average Internet traffic (Figure 23).
The Cisco data can be seven times higher than the Minnesota Internet Traffic Studies (MINTS) data not only because the Cisco figures are estimates for the global—not just the domestic US—Internet, but also because Cisco counts "general IP traffic (thus including closed networks that are not truly part of the Internet, but use IP, the Internet Protocol, such as the IPTV services of various telecom firms)". The MINTS estimate of US national backbone traffic for 2004, which may be interpolated as 200 petabytes/month, is a plausible three-fold multiple of the traffic of the US's largest backbone carrier, Level(3) Inc., which claims an average traffic level of 60 petabytes/month.
Cost per mille requires only that the publisher make the advertising available on his or her website and display it to the page visitors in order to receive a commission. Pay per click requires one additional step in the conversion process to generate revenue for the publisher: A visitor must not only be made aware of the advertisement but must also click on the advertisement to visit the advertiser's website.
● Video surveillance: New Internet-connected video surveillance cameras upload a constant video stream to the cloud for remote viewing. With a steady flow of video traffic from each camera, video surveillance is already having an effect on overall Internet traffic. It accounts for 2 percent of Internet video traffic today and will grow 7-fold to reach 3 percent by 2022. If such devices become mass market in the next five years, we could see video cameras generating a significantly higher volume of traffic, since Internet-enabled cameras can produce up to 300 GB per camera per month for full HD-resolution monitoring of high-activity areas.
As search engines have become more prominent, some affiliate marketers have shifted from sending e-mail spam to creating automatically generated web pages that often contain product data feeds provided by merchants. The goal of such web pages is to manipulate the relevancy or prominence of resources indexed by a search engine, also known as spamdexing. Each page can be targeted to a different niche market through the use of specific keywords, with the result being a skewed form of search engine optimization.
● Quantifiable impact of IoT connections and applications is creating new network demands and requirements. IoT connections will represent more than half (14.6 billion) of all global connected devices and connections (28.5 billion) by 2022. While IoT includes a wide variety of low-bandwidth to high-bandwidth applications (from smart meters to smart cars), the segment will represent more than 6 percent of global IP traffic by 2022 (up from just over 3 percent in 2017). In addition to traffic growth ramifications, IoT is also a catalyst for fixed/mobile convergence network innovations and comprehensive network security improvements.
Connected home applications, such as home automation, home security and video surveillance, connected white goods, and tracking applications, will represent 48 percent, or nearly half, of the total M2M connections by 2022, showing the pervasiveness of M2M in our lives (Figure 11). Connected car, with applications such as fleet management, in-vehicle entertainment and Internet access, roadside assistance, vehicle diagnostics, navigation, and autonomous driving, will be the fastest-growing industry segment, at a 28 percent CAGR. Connected cities applications will have the second-fastest growth, at an 26 percent CAGR each.