1
Introducing the Google    Affiliate Network  Claudia Kosny, Knewledge Sarl      15h40 – 16h00
Affiliation process part 1 – set up    Merchant              3
Affiliation process part 1 – set up      • Signs up at network  • Provides advertising material                           ...
Affiliation process part 1 – set up                                                  • Signs up at network      • Signs up...
Affiliation process part 2 – visitor flow                              Affiliate    Merchant                  Network     ...
Affiliation process part 2 – visitor flow                              Affiliate    Merchant                  Network     ...
Affiliation process part 2 – visitor flow                                Affiliate    Merchant                    Network ...
Affiliation process part 2 – visitor flow                                Affiliate     Merchant                   Network ...
Affiliation process part 3 – payment flow                            Affiliate    Merchant                Network         ...
Affiliation process part 3 – payment flow            • Reports conversion to                    network                   ...
Affiliation process part 3 – payment flow            • Reports conversion to               • Credits commission to        ...
Affiliation process part 3 – payment flow                            • Invoices merchant            • Reports conversion t...
Benefits of Affiliation• Extremely performance based – pay only on conversion• special commission models for specific prod...
Complexity of Affiliation• No fixed budget, difficult to forecast• Requires active management by merchant (or agency)    ...
Affiliation and Paid Search/Display• Important step in buying decision process (price comparison, niche  websites)• Opport...
Benefits of using a third party Affiliate network• Many existing potential affiliates on (well-known) networks• Higher (pe...
Google Affiliate Network• Acquired through the DoubleClick acquisition in 2007• Second major affiliation network in US, 38...
Google Affiliate Network• Integration of merchant center data• AdSense account is required     same strict checks for com...
Google Affiliate Network – Homepage            20
Google Affiliate Network – Manage ad material            21
Google Affiliate Network – Finding new affiliates             22
Google Affiliate Network – Finding new affiliates             23
Google Affiliate Network – Reports            24
Outlook• Strong affiliate market in Europe     Zanox: > 4.000 advertisers, >1.000.000 affiliates     Tradedoubler: >1.90...
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Claudia Kosny - Introducing the Google affiliate network (based on US/UK launches)

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Introducing the Google affiliate network (based on US/UK launches). Claudia Kosny at search university

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Claudia Kosny - Introducing the Google affiliate network (based on US/UK launches)

  1. 1. 1
  2. 2. Introducing the Google Affiliate Network Claudia Kosny, Knewledge Sarl 15h40 – 16h00
  3. 3. Affiliation process part 1 – set up Merchant 3
  4. 4. Affiliation process part 1 – set up • Signs up at network • Provides advertising material Affiliate Merchant Network 4
  5. 5. Affiliation process part 1 – set up • Signs up at network • Signs up at network • Applies for merchant’s • Provides advertising material program • Uses advertising material Affiliate Merchant Network Affiliate 5
  6. 6. Affiliation process part 2 – visitor flow Affiliate Merchant Network Affiliate Visitor 6
  7. 7. Affiliation process part 2 – visitor flow Affiliate Merchant Network Affiliate • Clicks on advertising Visitor material 7
  8. 8. Affiliation process part 2 – visitor flow Affiliate Merchant Network Affiliate • Is redirected via network to merchant’s website • Network registers click • Clicks on advertising Visitor material 8
  9. 9. Affiliation process part 2 – visitor flow Affiliate Merchant Network Affiliate • Is redirected via network to merchant’s website • Network registers click • Makes a conversion • Clicks on advertising Visitor material 9
  10. 10. Affiliation process part 3 – payment flow Affiliate Merchant Network Affiliate Visitor 10
  11. 11. Affiliation process part 3 – payment flow • Reports conversion to network Affiliate Merchant Network Affiliate Visitor 11
  12. 12. Affiliation process part 3 – payment flow • Reports conversion to • Credits commission to network affiliate Affiliate Merchant Network Affiliate Visitor 12
  13. 13. Affiliation process part 3 – payment flow • Invoices merchant • Reports conversion to • Credits commission to network affiliate Affiliate Merchant Network Affiliate Visitor 13
  14. 14. Benefits of Affiliation• Extremely performance based – pay only on conversion• special commission models for specific products• special commission models for specific affiliates• Multi-channel marketing (source: A4U, European Affiliate Marketing Landscape Report 2011)  Content / portal: 21%  Price comparison: 12%  E-mail marketing: 11%  Niche / Micro-Niche: 11%  Voucher codes: 10%  Cashback / Incentive: 7%  Mobile / App development: 4%• Affiliates can select best advertising material for their content 14
  15. 15. Complexity of Affiliation• No fixed budget, difficult to forecast• Requires active management by merchant (or agency)  Recruit and approve new affiliates  Provide incentives for existing affiliates  Inform affiliates about current promotions, update banners  Continuously check integrity of affiliates  Ensure good conversion rate to entice new affiliates (high EPC)  De-duplicate reported conversions• Requires active participation by affiliate for best performance  Needs to select banners and add to website  Needs to check back for promotions and new banners• Manual optimization of campaign 15
  16. 16. Affiliation and Paid Search/Display• Important step in buying decision process (price comparison, niche websites)• Opportunity to advertise on websites that are not available via GDN• Not suitable for short term campaigns• Not suitable for pure brand campaigns, more conversion-focused• Not part of the search process  lower CTR 16
  17. 17. Benefits of using a third party Affiliate network• Many existing potential affiliates on (well-known) networks• Higher (perceived) reliability• Single invoice• Fraud protection, policy enforcement• Often additional tools available  Voucher code management  Banner rotation  Container-Tag solutions  …• Less maintenance 17
  18. 18. Google Affiliate Network• Acquired through the DoubleClick acquisition in 2007• Second major affiliation network in US, 38% YoY growth• Since end of 2011 active in the UK• Roadmap:  Germany: Q3 2012,  France Q4 2012,  rest of Europe during 2013 18
  19. 19. Google Affiliate Network• Integration of merchant center data• AdSense account is required  same strict checks for compliance (no automated clicks or impressions)• Easy signup for AdSense members  unique affiliate distribution• Easy integration into Blogger (currently US only)• Cooperation with third party providers for keyword monitoring• Easy automatic tagging of destination urls for (any) web analytics 19
  20. 20. Google Affiliate Network – Homepage 20
  21. 21. Google Affiliate Network – Manage ad material 21
  22. 22. Google Affiliate Network – Finding new affiliates 22
  23. 23. Google Affiliate Network – Finding new affiliates 23
  24. 24. Google Affiliate Network – Reports 24
  25. 25. Outlook• Strong affiliate market in Europe  Zanox: > 4.000 advertisers, >1.000.000 affiliates  Tradedoubler: >1.900 advertisers, >128.000 affiliates  Google Affiliate Network: >800 advertisers, >22.000 affiliates• Generally positive outlook for affiliates, expected growth in 2012 about 14.9% (NL) source IAB• 16% growth/year since 2007 (USA) source Forrester• 313% YoY growth in revenues from mobile affiliate marketing (Europe) source Zanox• 46% of surveyed affiliates now work full-time in the industry (2009: 34%) source Econsultancy.com• 66% of affiliates earn more than 5000€/month source A4U 25
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