CIM: Affiliate Marketing

Affiliate Marketing(making the money)

Who the heck am I?
Andrew Girdwood
Former Head of Strategy at bigmouthmedia
New Media Innovations Director at bigmouthmedia + LBi
More importantly,
An affiliate
Hands on with affiliate strategies for clients

Agenda
A quick introduction to affiliate marketing
The role of affiliate networks
The role of affiliate agencies
Avoiding problems
Reach Marketing
Some top tips for today
Affiliate marketing tomorrow

What the heck is affiliate marketing?
Worth £38,000,000,000 in sales in the UK (Econsultancy)
Performance based marketing activity
Very close to the sales side of the business
Affiliates only paid when they generate a sale/lead
Affiliates payments only made when a threshold is reached.
Not for everyone; B2B, for example.

Example: Titan Books

Networks
Amazon runs its own affiliate technology.
Most brands do not. They use networks.
Amazon runs its own affiliate technology.
Most brands do not. They use networks.

Only 50% of affiliates trust brands to track activity accurately without network help
- Bigmouthmedia survey

When do you need an agency
When your campaign is large and complex enough
When your volume of traffic is high
Two or more networks
Two or more regions
When you want to coordinate your affiliate marketing with other marketing channels
When you need to optimise the channel
Quick case study: Cloggs saw affiliate conversion rate improve by x9.5 over 12 months by moving agencies

Problems to watch out for
Affiliates misrepresenting your brand or products
Think about the FSA, Unfair Trading Act and other regulations
Delays on payments to affiliates
Lead leakages
Do you have your contact us phone number on your site?
Cannibalisation of sales
Why pay for anything you don’t have to?

76% of affiliates think they are better digital marketers than the brands they work with.
- Bigmouthmedia survey

Reach Marketing
Affiliate marketing must avoid cannibalisation and must focus on incremental sales.
Affiliates should bring those sales/leads you could not have reached through your own marketing efforts.
Affiliates should save those sales/leads you would have lost otherwise.
Loyalty and cashback sites have a key role to play here.

Reach Marketing

Top Tip One: Conversions
You don’t need to pay your affiliates more in order to get more activity from them.

Top Tip Two: Communication
The single most important thing the marketing manager and agency can do right/wrong
Understand how affiliates communicate
Understand what they need
For example,
Benefit from ruling the natural Google results by filling the first page of results with you and your affiliates

Top Tip Three - Listen
Especially after a launch
Twitter: “Learning about A4U and the #A4UExpo at @CIM_East”

Top Tip Four – Data and Creatives
Banner sizes that work for bloggers
Stable product feeds

Top Tip Five – De-Duplication
Don’t pay twice – easier said than done
Monday: Shopper clicks on your PPC ad for Product X
Wednesday: Shopper researches Product X, reads an affiliate page and clicks through to your product page
Friday: Shopper uses a brand search to return to your site and buys Product X.
Is that a paid search or an affiliate sale?

Affiliate marketing tomorrow

andrew@bigmouthmedia.com
http://slidesha.re/cim-aff
Thanks!

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CIM: Affiliate Marketing

by Andrew Girdwood on Oct 11, 2010

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CIM: Affiliate Marketing — Presentation Transcript