5 main topics tobetackledtoday.Goal is easy togiveyou a crash course in affiliation: past,presentandfuture.
The basis = tracking, cookie-based tracking … new EU cookie law (optin/optout) other optionsFor now… cookies do the trick. Differencepostview vs. Postclick, cookietimes , last cookie vs first cookie, conversionpaths / touch pointsCookies giveyou a totaloverview on the customer journey, the touch points andhow different media worktogether.
The classis AIDA model convergesnicelywith the different online paymentmodels.Off course this is notan exact science, there are always different andhybridmodels.But the exceptions prove the rule!
If we leave the paymentmodelsbehindand take the AIDA model into the media mix, we canclearlypositionaffiliate in the action segment.
Notethatthis is of course onlyexistant in the perfect world.
Iab phl-handouts-affiliate marketing
Welcome at …Affiliate marketing: a love story?
Different How to Facts & TheIntro Types do it Figures Future
Me & affiliate marketingPersonal facts Professional facts
Affiliate marketing & meMe, myself and I+5 years of affiliate marketing experienceManaged BE accounts for large local and international brands:p.e.Managed pan-european affiliate accounts for large internationalcompanies: p.e.Headed up BE operations of existing affiliate clients (6 teammembers, + 100 clients,…)Part of affiliate success team at TradedoublerPassionate affiliate myself!
Affiliate marketing & meThe company: TradedoublerInternational performance-based marketing companyFounded in 1999 (Be: °2005 - + 2012)Worldwide reach2.000 well known brands140.000 active publishers (4.000 in Belgium)https://www.youtube.com/watch?v=CrxijXsM7AY
Affiliate marketingExperience with affiliate marketing?What is affiliate marketing?Affiliate marketing = performance based marketingAffiliates/partners promote a merchants product/service and getremunerated for every sale, visit or subscription sent to the merchant.
Affiliate marketing Experience with affiliate marketing? What is affiliate marketing? The most frequently used payment models: * pay-per-view (CPM) * pay-per-click (CPC) * pay-per-lead (CPL) * pay-per-sale (CPS) * pay-per-download/install (CPD/CPI)Source: http://www.amnavigator.com/questions.htm
Affiliate marketing Experience with affiliate marketing? What is affiliate marketing? Affiliate marketing is one of the most powerful and effective customer acquisition tools available to an online merchant today. You decide what commission to pay, and pay only when results (sales, leads and/or clicks) are obvious.Source: http://www.amnavigator.com/questions.htm
Affiliate marketing Tracking Software Goes through Clicks on Redirects toVisitor Affiliate Website Sends commission Merchant Site Advertiser = Merchant Publisher = Affiliate
Affiliate marketingIt’s all about the… touch points, conversion paths & insights
Affiliate marketing Specific case on a travel client... Customer journey
I’m going to make himan offer he can’t refuse!
Affiliate marketing / Performance vs. Branding Branding: Performance: Strong emphasis on company Strong emphasis on direct brand response & interaction Spreading awareness among Converting potential potential customers customers into actual customer Hard to measure ROI Easy to measure ROI Pay per impressions/views Pay per Click/Lead/Sale/Download/Ins tall • http://www.youtube.com/watch?v=BufQcgzo5yE • http://www.youtube.com/watch?v=rV9e3lbsq4c • http://www.autoleningsimulatie.com • http://www.youtube.com/watch?v=CTg8jGlTFY0
You want the truth?You can’t handle the truth!
The Code Red C A O F D S M F I E P I S A S A L P R M O E R I L C O C M I A A H B I A S T Y . I A I O E . L L L N . EClassic thinking:Each channel … its own strategy, its own partner, its own payment model
The truth… SEARC H DISPLAY SOCIAL EMAIL CONTENT MOBILE RETARGETING, BLOGS,…Integrated thinking:All online channels work together to generate conversions.
Affiliate Ad Spending Size of affiliate market (rev €m) 2011 UK 396 Germany 295 France 171 Brazil 133 Russia 83 Netherlands 77 Italy 44 Switzerland 43 Spain 42 Sweden 37 Poland 34 Norway 30 Denmark 30 Belguim 26 Austria 25 Finland 13 Ireland 11 Portugal 5 Lithuania 1 0 50 100 150 200 250 300 350 400 450 size of affiliate market (rev €m) 2011
Affiliate factsOrigin & History:- ° 1989: US – William Tobin- °1994: CDNow- °1996: Amazon- °2001: Amazon takes over CDNow activities 1999
Affiliate facts - BEYou had me at ’hello’! – Networks...
Affiliate facts - BE Who is out there?! 750 + Advertisers 25.000+ 26 million €Publishers (2011)
Life is like a box of chocolates.You never know what you aregoing to get!
Different typesPPC / SearchWhat? SEA traffic, Facebook AdsHow?1. Direct linking to homepage or product page2. Link using Landing page to homepage or product page3. Brand / Brand + Generic / Generic4. Payment model: CPC-based (rate depends on competitiveness of keywords)Examples- Direct Linking (“philips”, “Philips Lumea”)- Link using Landing page (“Dell Vouchers” , “Disneyland Paris”)
Different typesShopping portals / directoriesWhat? Online shopping centersHow?1. Overview of online shops in one place2. Offer seasonal promotions or promote best performing products3. Payment model: CPL/CPSExamples• http://www.shopsafe.co.uk/• http://www.surfplaza.be
Different typesCashback / RewardWhat? Give a part of earnings back to the visitorsHow?1. Visitors get cash or rewards in the form of redeemable points2. Target extremely loyal user base with personal mailings3. Payment model: CPL/CPSExamples• http://www.quidco.co.uk/• http://www.euroclix.be
Different typesPrice ComparisonWhat? Compare prices of different advertisers.How?1. Implementation of advertiser XML feeds which contain product catalogues (product name, price, availability, reviews …)2. Payment model: CPC-based (rate depends on the product)Examples• http://www.comparer.be• http://www.beslist.be
Different typesVoucher / Discount code websites - appsWhat? Overview of online/offline redeemable vouchersHow?1. Offer all existing vouchers in one place2. Keep loyal user base up to date using RSS and email3. Payment model: CPL/CPSExamples• http://www.vouchercodes.co.uk/• http://www.pricereduc.com• http://www.korting.be/
Different typesUGCWhat? Vertical niche websites (specialized websites, blogs, …)How?1. Unique user generated content (blogposts, static pages …)2. Drive organic traffic3. Offer additional value on top of advertiser promotions (reviews, how to’s …)4. Payment model: CPL/CPS or tenanciesExamples• http://www.autodiensten.be• http://www.credit-conso.be
Different typesEmailingWhat? Mailing databasesHow?1. Personalized, custom-made communication – direct reponse2. Daily, weekly, occasional mailings3. Highly effective for CPL-offers4. Payment model: CPM/CPC/CPL/CPS or tenanciesExamples• http://www.3suisses.be/• http://www.caloga.com
Different typesSocialWhat? Social network link: Facebook, Twitter, Pinterest … & social games (virtual currency)How?1. Promote offers using personal social network accounts / pages2. Very effective on short term because of viral effect3. High traffic volumes (redemption – social + reward)4. Payment model: CPL/CPSExamples• http://www.facebook.com/actiecode https://apps.facebook.com/farmville-two/• https://twitter.com/bespaar
Different typesDisplay – Media buyingWhat? Networks or websites with huge traffic and ad inventories & ad exchangesHow?1. Regular display banner ads & sizes2. Optimization based on data & postview tracking3. Payment model: buying on CPM / CPC, selling on a CPA/CPLExamples• http://www.admeld.com• http://www.gamned.com
Trends – by deviceiPhone 55% 44% 55% 21% MOBILE USE APPS RESEARCH PURCHASE several times a day weekly or more often weekly or more often INTERNET several times a day Tradedoubler Mobile Commerce Study May 2012 (UK, France, Germany & Sweden). UK data.
Trends – by deviceAndroid 29% 24% 30% 11% MOBILE USE APPS RESEARCH PURCHASE several times a day weekly or more often weekly or more often INTERNET several times a day Tradedoubler Mobile Commerce Study May 2012 (UK, France, Germany & Sweden). UK data.
Trends – by deviceBlackberry 31% 14% 26% 8% MOBILE USE APPS RESEARCH PURCHASE several times a day weekly or more often weekly or more often INTERNET several times a day Tradedoubler Mobile Commerce Study May 2012 (UK, France, Germany & Sweden). UK data.
Trends – by deviceTablets 50% 42% €257 research purchase highest amount spent BIGGER TICKET ITEMS HIGHER CONVERSION RATES Tradedoubler Mobile Commerce Study May 2012 (UK, France, Germany & Sweden). UK data.
I guess you guys arent readyfor that yet. But your kidsare going to love it..
Future trends happening nowRoPo / RofPo – Test Case The Body Shop delivered in-app offers which smartphone owners researching on the move could redeem in-store or via The Body Shop’s mobile site CONVERSION RATE OF 23% 46% INCREASE IN SALES