Measuring the value ofaffiliate marketingMeasuring the value ofaffiliate marketing Kevin Edwards, Affiliate Windowkevin.ed...
GLOBAL PERFORMANCEMARKETING EXPERTSPART OF LARGEST GLOBALPERFORMANCE NETWORKESTABLISHED IN2000CUSTOMIZEDPORTFOLIO SERVICES...
3
Where we’ve come from & where we’re going4Are they theright type ofsale?Are they theright type ofsale?Am I paying forsales...
5in·cre·men·tal  adjective: of, relating to, being, or occurring inespecially small increments <incrementaladditions> <inc...
mea·sur·ing val·ueThere are practical ways we can do so:• how many sales are standalone?• how close are the clicks to the ...
What is incremental? Average Order ValueUpsellingVolumeProfitabilityFrequencyDemographicsNew vs. ExistingChurn
De-duplication is not anattribution strategy!Cross-channel reporting isvital to understandingincrementalityWhat is increme...
How many channels are affiliates de-duplicated against?What is incremental?
What channels are de-duplicated against?What is incremental?
Prioritising de-duplication: retail client11All channelsde-duplicated
Prioritising de-duplication: retail client12Priority Campaigns Secondary CampaignsAffiliate PPC BrandPPC Generic Direct to...
Prioritising de-duplication: retail client13
Prioritising de-duplication: retail client14
15-22.5%Prioritising de-duplication: retail client
The incrementality of affiliates• Brief: to understand how affiliates impactsales and other channels across whole onlineec...
The incrementality of affiliates1738% singleinteraction88% threeinteractionsor less
The incrementality of affiliates18
The incrementality of affiliates19
The incrementality of affiliates: AOVs20
The incrementality of affiliates: AOVs21• Use promotions strategically to boost AOVs• Different affiliates can improve AOV...
The incrementality of affiliates22
The incrementality of affiliates• Understand how affiliates are influencers in thepath to conversion. Work with them toinf...
The incrementality of affiliates24
The incrementality of affiliates25
The incrementality of affiliates26
The incrementality of affiliates27
The incrementality of affiliates• Understand the affiliates that are involved in sales on anindividual basis to find out t...
Understanding the value29AWin visibilityClient visibility Client visibilityClient visibility Client visibilityWider AWin p...
Understanding the value30
Understanding the value31
Understanding the value32
Understanding the value33
Understanding the valueIt is important to understand the variances amongst individualaffiliates: same categorisation, diff...
ADD THE SHOPPING TROLLEY SLIDE35
Understanding the value36Assess ‘incremental’ in context of changing consumer habitsThere is no one measure of incremental...
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AM Days San Francisco 2013 - Measuring the Value of Affiliate Marketing

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  • Questions of attribution go hand in hand with questions of incrementality. Attribution is about understanding the touch-points in the user’s click path and the most common click-paths or routes to conversion. This requires data rather than guess-work. De-duplication is not an attribution strategy. De-duping different channels doesn’t tell you anything about the part they play in the decision to purchase. Again, requires data not guess-work.
  • Affiliates losing out as much as they gain because advertisers de-dupe instead of attributing correctly. E.g., 92% de-dupe against paid search, which is rarely incremental.
  • Affiliates losing out as much as they gain because advertisers de-dupe instead of attributing correctly. E.g., 92% de-dupe against paid search, which is rarely incremental. Caveat to what follows – advertisers should not rely on categorisation too heavily; publishers should showcase how they cross different categories
  • AM Days San Francisco 2013 - Measuring the Value of Affiliate Marketing

    1. 1. Measuring the value ofaffiliate marketingMeasuring the value ofaffiliate marketing Kevin Edwards, Affiliate Windowkevin.edwards@affiliatewindow.comKevin Edwards, Affiliate Windowkevin.edwards@affiliatewindow.com
    2. 2. GLOBAL PERFORMANCEMARKETING EXPERTSPART OF LARGEST GLOBALPERFORMANCE NETWORKESTABLISHED IN2000CUSTOMIZEDPORTFOLIO SERVICES2TIMES WINNER OFPUBLISHERS’ CHOICEOF NETWORKTIMES WINNER OFAFFILIATE NETWORKINNOVATION$2.5bn1,700MERCHANTS
    3. 3. 3
    4. 4. Where we’ve come from & where we’re going4Are they theright type ofsale?Are they theright type ofsale?Am I paying forsales I would havegot anyway?Am I paying forsales I would havegot anyway?Are couponaffiliates goalhangers?Are couponaffiliates goalhangers?Are affiliatescannibalizing myother activity?Are affiliatescannibalizing myother activity?Am I payingtoo much forsales?Am I payingtoo much forsales?How do I measurehow incrementalmy sales are?How do I measurehow incrementalmy sales are?
    5. 5. 5in·cre·men·tal  adjective: of, relating to, being, or occurring inespecially small increments <incrementaladditions> <incremental change>“How incremental are my sales?” ≈“would I have got my sales if I didn’t run anaffiliate marketing campaign?”
    6. 6. mea·sur·ing val·ueThere are practical ways we can do so:• how many sales are standalone?• how close are the clicks to the sale?• how many affiliates are involved in the sale?• how many of the sales are new customers?• how many of the sales drove repeat custom?• how many of the sales drove good quality?• how many channels were involved in a sale?
    7. 7. What is incremental? Average Order ValueUpsellingVolumeProfitabilityFrequencyDemographicsNew vs. ExistingChurn
    8. 8. De-duplication is not anattribution strategy!Cross-channel reporting isvital to understandingincrementalityWhat is incremental?
    9. 9. How many channels are affiliates de-duplicated against?What is incremental?
    10. 10. What channels are de-duplicated against?What is incremental?
    11. 11. Prioritising de-duplication: retail client11All channelsde-duplicated
    12. 12. Prioritising de-duplication: retail client12Priority Campaigns Secondary CampaignsAffiliate PPC BrandPPC Generic Direct to SiteEmail Brand SEO BrandSEO Generic RetargetingSocial Natural
    13. 13. Prioritising de-duplication: retail client13
    14. 14. Prioritising de-duplication: retail client14
    15. 15. 15-22.5%Prioritising de-duplication: retail client
    16. 16. The incrementality of affiliates• Brief: to understand how affiliates impactsales and other channels across whole onlineecosystem• Retail client’s data from August 2012• All channels, both paid and unpaidmarketing, assessed• Insight project handled by Affiliate Window’sStrategy and Business Intelligence Teams16
    17. 17. The incrementality of affiliates1738% singleinteraction88% threeinteractionsor less
    18. 18. The incrementality of affiliates18
    19. 19. The incrementality of affiliates19
    20. 20. The incrementality of affiliates: AOVs20
    21. 21. The incrementality of affiliates: AOVs21• Use promotions strategically to boost AOVs• Different affiliates can improve AOVs: workwith them on an individual basis• Targeted campaigns can be run on certainproduct ranges to increase basket values
    22. 22. The incrementality of affiliates22
    23. 23. The incrementality of affiliates• Understand how affiliates are influencers in thepath to conversion. Work with them toinfluence the products they are promoting.• Work with influencers to understand how theycan convert rather than just influencecustomers• Recognise the value these partners add in theresearch phase of the customer journey andhow to increase exposure across these partners23
    24. 24. The incrementality of affiliates24
    25. 25. The incrementality of affiliates25
    26. 26. The incrementality of affiliates26
    27. 27. The incrementality of affiliates27
    28. 28. The incrementality of affiliates• Understand the affiliates that are involved in sales on anindividual basis to find out the profile of their customers• Look at offers that could help convert from the affiliatesites that are frequently involved without winning the saleon a last click basis• Work with individual partners to get better placementsacross their sites. Alternative payment models may need tobe considered• Look at bespoke offers for the largest incentivised sites tosee how to best capitalise on their loyal membership baseto drive incremental value28
    29. 29. Understanding the value29AWin visibilityClient visibility Client visibilityClient visibility Client visibilityWider AWin project to conduct ongoing analysis ofaffiliate programme quality: will rely on datasharing
    30. 30. Understanding the value30
    31. 31. Understanding the value31
    32. 32. Understanding the value32
    33. 33. Understanding the value33
    34. 34. Understanding the valueIt is important to understand the variances amongst individualaffiliates: same categorisation, different resultsCoupon Coupon CouponCoupon
    35. 35. ADD THE SHOPPING TROLLEY SLIDE35
    36. 36. Understanding the value36Assess ‘incremental’ in context of changing consumer habitsThere is no one measure of incremental: Look beyond volumeto valueCross-channel paths to purchase can show where value isadded: a single attribution model does not work for allDemand insight into publishers’ audiences / member basesNot all affiliates with same promotional method are the same
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