Webchannel

Managed wisely, search engine marketing and affiliate programs can coexist peacefully. When the programs are left unchecked, however, many catalogers find themselves competing against their own affiliates, driving up their overall marketing costs, increasing their use of discount offers, decreasing their average margin, and possibly harming their brand.

Faced with the bid spasms of some of their competitors, marketers may be tempted to measure their success by the most readily visible metric: position on the page. But bidding to position is dangerous

Savvy direct marketers understand that ongoing testing is the key to improving results. Done right, paid search advertising lends itself well to this rigor: