Rakuten to set up ‘online mall’ in the UK + a few more affiliate networks announce their arrival
Soon after Linkshare set up operations in the UK, it looks like Linkshare’s parent company, Rakuten plans to tap into the UK’s booming market for online shopping. The Japanese internet giant plans to set up a ‘virtual shopping’ along the lines of what it has in Japan[news courtesy: The Independent, e-consultancy.co.uk], though it is not clear if it will follow the same business model in the UK [a membership fee for merchants + a percentage cut of all transactions].
A few affiliate networks have launched recently in the UK– adding to the many established players. There are a couple of blogs asking these related questions: do we need more affiliate networks in the UK and whether new networks will be able to attract affiliates?
As to the first question, I think the answer really depends on who you ask. At the rate at which online shopping is growing, may be there is space for some networks that operate in their own niches [whether it be in terms of vertical segments or size of advertisers/ merchants or the type of rewards programs they run]. As long as they are able to identify and create a strong niche for themselves, I suppose there will be takers for these networks and they will survive. I think the answer to the second question also lies in the above sentence- affiliates will join networks provided they find good programs to promote with considerable potential, the compensation offered is good and the network can deliver on service and support and affiliates can believe that they can trust the network.
It is also likely that the recent spurt in new networks entering the market is driven by some of the M&A activity going on in the online advertising space and the large sums of money involved. I just hope that networks are not launching with the end goal of being part of an acquisition and hope to enjoy the inevitable ‘consolidation’…
