Literature Overview

The literature overview depicts available theories and models that will be used for answering the research questions. First, we will look into affiliate marketing in a broader scope of online advertising and explain the most common terms used in both online advertising and affiliate marketing to have an insight into both first and second research question. Furthermore, the advantages and issues connected with online advertising will be described as well as benefits connected to affiliate marketing in order to understand how content providers can view them and create framework for the first research question.

Then, types of online advertising and their connection to affiliate marketing will be depicted followed by available compensation models that give also an insight about different ways how to measure effectiveness in online advertising and affiliate marketing. This will provide a theoretical basis for answering the second research question.

Finally, as a theoretical basis for the third research question, concepts connected with supplier selection will be described, so that the process of selecting a provider of an affiliate program can be explicated.

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