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In a nutshell, we do allow affiliates to advertise with us directly, but there are some guidelines: If you're an affiliate of Company A, the landing page you submit must be owned or controlled by you (not Company A) or be a Company A page that is personalized/co-branded with your name or business name. We would not accept your ad if it lands on a non-personalized Company A page.
Hope that makes sense,
Between the affiliate stance and not building proper tools for third parties / agencies to manage ppc (not bid tools, I mean something like G's MCC accounts so outside parties can be hired to run and manage a merchant's ppc), they're missing out on two main reasons why G's killing them in the marketplace.
Consumers suffer too - when they search for something niche and specific, there's fewer choices presented because there's not nearly the volume of people and mind space behind the scenes setting up ads for their targeted consumption.