dgm to extend affiliate model to Hong Kong and SE Asia

SOUTHEAST ASIA - Online marketing group dgm is launching an affiliate marketing network across Hong Kong and Southeast Asia.

The network is designed to help small and medium-sized online publishers make money out of their web traffic by linking them with big brands.

dgm, which started in London and now has bases in Australia, India and Singapore, specialises in search and affiliate marketing. It has already built affiliate networks in Australia and India, and will now repeat the model in Hong Kong and Southeast Asia.

The network will soft-launch in early June, with a full launch later that month. Clients already signed up to the service include Apple.

Affiliate marketing has grown rapidly in Western markets but has had limited success in Asia. It is based on a cost-per-action model, whereby publishers are rewarded for driving customers to brands. "We believe the cost-per-action model will appeal to the entrepreneurial side of Asian business culture," said James Hawkins, group head of search at dgm. "Affiliate marketing will build rapidly and account for an increasing proportion of advertisers' online adspend."

The company launched its UK affiliate network in 1999, with Australia in 2003 and India a year ago.