Affiliate Marketing: A Better Alternative? Ad:tech 2009

Affiliate Marketing: A Better Alternative? Content Revenue Strategies NY November 5 th , 2009 Moderator: Steve Schaffer

Session Agenda
Questions About the Audience
Panel Introductions
Performance Marketing Overview
Panel Discussion -- I will Ask the First Few Questions
Questions From the Audience
Panel Discussion – Questions of each other
11/5/2009

Our Panel Steve Schaffer Founder of Vertive and publisher of Offers.com @SteveSchaffer Brook Schaaf Founder of Schaaf Consulting @BrookSchaaf Shawn Collins Co-Founder of Affiliate Summit @AffiliateTip Peter Bordes CEO of MediaTrust @MediaTrustPete Will Martin-Gill Director, Internet Marketing at eBay, Inc. @eBay_affiliates 11/5/2009 Gil Abir VP, Corporate Partnerships, Payoneer, Inc.

What is Affiliate Marketing?
Three primary forms of online marketing
Pay per impression
Pay per click
Pay for performance (sales or leads)
For this panel we are focusing on Pay for Performance
Also called Performance Marketing or Affiliate Marketing
11/5/2009

Publisher Business Models
Direct-linking affiliates (Search & Ad Networks)
Niche sites and blogs
Coupon and deal sites
Cash back or points
11/5/2009

Three Main Types of Actions Merchant pays ~$25 for a customer who is worth ~$50 Per lead fee Form or application Loans, insurance, car, free trial Lead Merchant pays a commission on the transaction (~3-10%) Percent of the sale (commission) Retail/Service Gifts, shoes, electronics, travel Sale Merchant pays a percent of the value of initial sale or Pays a predetermined bounty often based on the estimated lifetime value Pay-per-sale or revenue share Account/Subscription Credit cards, subscriptions, memberships New Customer Payment Details Payment Method Types of Offers Transaction Type 11/5/2009

How Big is the Industry? According to one source : Source: Forrester Research, Inc . 11/5/2009

U.S. Affiliate Landscape This is just 25% of ONE network’s (LinkShare) affiliate universe! 11/5/2009

Why Such Rapid Growth? Measurable, Performance-based Spend Revenue ROI+ for merchants, $$$ for publishers More consumers looking online for info, deals New tools are making it easier to implement 11/5/2009

Why Publishers Like Affiliate Marketing
Performance model pays publishers for the quality of their work
More flexibility for ad integration, adding to a publisher’s content
Connect directly with top-tier advertisers, no insertion orders required
More control over the ads displayed
11/5/2009

What We Hear 11/5/2009 “ Many publishers are reporting between a 10 to 12% increase in payouts on select non-premium inventory when using affiliate marketing vs. CPC. CPM-based publishers are reporting similar increases on the same type of inventory.” -- Mike Oulette, Director, Publisher Development, Commission Junction

Example: Spadout.com 11/5/2009 The keyword “gloves” takes the reader to a page featuring gloves on sale – each glove listing is an affiliate link “ Our audience leaves Spadout knowing exactly what they want to buy, where they want to buy it, and confident they are getting a fair price. This creates high converting traffic that can out-perform other websites’ revenue.” Mark Silliman, Spadout.com “ Since we became free of untargeted advertising, our revenue has increased and we're 100% on mission: take readers and make high, fast converting shoppers."

Example: ShopWiki.com 11/5/2009 “ Performance based advertising allowed us to take on the appropriate risk (instead of our advertisers), so we could find innovative ways of putting information on our site that would optimize our yield and still deliver high quality traffic.” James Keating, ShopWiki.com “ With performance based advertising, consumers vote with their dollars as to how much they like a merchant. We can put those advertisers at the top of the list so consumers find them faster and they convert faster. “ A click on the “shoes” link takes the consumer to a buying guide - ShopWiki is educating the consumer and moving them closer to a sale. Clicking on “boots” reveals boots on sale from popular merchants that have affiliate relationships with ShopWiki

Example: TopDatingTips .com 11/5/2009 Content site uses both contextual ads and affiliate links

Where Can I Learn More? 11/5/2009

Questions for Panel 11/5/2009

http://www.techgig.com	20
http://www.slideshare.net	12
http://adnoize.blogspot.com	8
http://tweets.mediatrust.com	4
http://adnoize.blogspot.co.nz	1

Affiliate Marketing: A Better Alternative? Ad:tech 2009

by MediaTrust on Nov 11, 2009

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Affiliate Marketing: A Better Alternative? Ad:tech 2009 — Presentation Transcript