Network Profile: ValueCommerce

The first Japanese affiliate network I’ll be profiling is the biggest and oldest dog on the block; ValueCommerce. My dealings with ValueCommerce go back to its begining in 1999. Back then I was running the online sales division for a Japanese direct marketer. After experimenting with CPM and CPC media buys, I went looking for a performance based advertising solution. ValueCommerce had just started offering affiliate program services that year and within a few months I signed on as one of their first merchants. It was a slow climb, but within a few years, my affiliate program was the number one earner for ValueCommerce and top of the list in total commission payments to affiliates. This success developed as a results of ValueCommerce’s main strength: a broad media reach and quality partner sites. Today ValueCommerce continues to lead the pack in a fast growing industry. Back in 2005, Yahoo Japan agreed to purchase 49% of ValueCommerce thus forming a partnership that would allow ValueCommerce to gain access to Yahoo Japan’s media channels for distribution of its affiliate offers. The Yahoo Japan deal effectively increases ValueCommerce’s partner network to over 370,000 when you include he Geocities properties into the mix. Japan in general lags behind the use of data feeds among the top networks. ValueCommerce is working hard to get more of it’s merchants to use data feeds, but at last count only about 3 merchants out of over 1600 supply data feeds to it’s affiliates. Linkshare is a bit ahead with over 20 merchants out of 270 using data feeds. On the technical side, ValueCommerce offers both merchants and affiliates a robust (and bilingual) reporting platform. The level of analysis available from the ValueCommerce system is unlike any of is Japanese competitors. Not all is rosy though. Many smaller networks offer better handling of mobile affiliate offers and the current mobile partner network is still too small and too dependant on CPC to offer significant ROI for smaller merchants. I’m told that ValueCommerce is working to address these needs. It no doubt must feel the pressure to improve its mobile network as players like Adways and Mobile Affiliate continue to nip at their heels. My overall opinion of ValueCommerce is quite positive. VC is the bull in the china hop and every affiliate network in Japan has no choice but to watch their every move. As the industry continues to expand at a rate of 40% a year, ValueCommerce will have to find ways to improve its mobile business, expand its media reach without sacrificing the quality they have built their reputation on.