Affiliate Apocalypse Panel - Duncan Popham


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Part 2 of 5. Affiliate Marketing is positioned to emerge from the current economic situation as the weapon of choice for online marketers. Its underlying commercial model is uniquely attractive. However, the industry also faces a number of challenges that threaten this status. In this session we will be discussing these challenges, how they relate to affiliate marketing and its future, as well as seeing some solutions in action Some of the areas we will be touching on include. Transparency from merchants and affiliates Volume over value Sales duplication Last click commercials Affiliate Marketing is facing its most challenging era yet, find out how to be on the winning team!

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Affiliate Apocalypse Panel - Duncan Popham

  1. 1. Affiliate Apocalypse<br />
  2. 2. A disclaimer<br />Duncan Popham – Total Search Solutions<br />Seth Richardson – DC Storm<br />Julia Stent – Vodafone<br />Helen Southgate – Sky Digital<br />Robert Glasgow – Webgains<br />We Love Affiliate Marketing<br />
  3. 3. Affiliate Marketing 2009<br /><ul><li>Extremely dynamic, multi-nuanced industry
  4. 4. Despite progress, more exposure at higher levels needed
  5. 5. Issues handled through multiple outlets, mixed messages
  6. 6. Collection of models held together through technology
  7. 7. Several thousand businesses involved
  8. 8. Limited central control
  9. 9. The predominate “pitch” is our payment model, yet our service offers much much more
  10. 10. Four questions to answer</li></li></ul><li>Single channel or multi<br /><ul><li>Many Affiliate Types:</li></ul>Pure Content<br />Cashback/Loyalty <br />Paid Search<br />Voucher sites<br />E-mail<br />User generated Content/Social Media<br /><ul><li>If we accept that Affiliate Marketing is a collection of models, why do we treat them the same?
  11. 11. Are valuable contributors to an acquisition often ignored?
  12. 12. Commission and attribution sophistication are extremely rare
  13. 13. Affiliate Diversification makes classification near impossible</li></li></ul><li>Transparent or Opaque<br />All parties claim to want “transparency”? But what does that actually mean?<br />Merchants <br />Full disclosure on deduplication? <br />Margins disclosure? <br />Affiliates<br />Full list of promotional activities? <br />Sales by URL? <br />Profits on PPC?<br />Networks<br />Most profitable merchants? <br />Disclosure of override %?<br />What is needed is consensus on the limits of transparency. <br />Transparency and accountability may be uncomfortable in the short term.<br />But long term will ensure the security of the industry.<br />
  14. 14. Integration or Isolation<br />Affiliate Marketing is a unique discipline but it does not stand alone<br />How does affiliate marketing affect other marketing channels?<br />Natural Search<br />Paid Search<br />Display<br />Increasing demand for “joined-up thinking”<br />Sales Deduplication<br />Post-impression<br />Reaction times<br />Optimisation<br />What demands do we make on advertisers and is this factored into a return?<br />Constant communication<br />Up-to-date with industry issues<br />Terms and Conditions<br />Ethical Merchant Charter<br />Does our inherent complexity cost us all money?<br />
  15. 15. Volume or Value<br /><ul><li>Our payment model dictates our volume focus.
  16. 16. “Super-affiliates” are usually defined as volume drivers not value-adders.
  17. 17. Many high value publishers input at the start of the purchase process.
  18. 18. Tiers and incentives increase this problem
  19. 19. Incrementality is advertisers key concern
  20. 20. Analytics, analytics, analytics
  21. 21. Are we in danger of losing our original USP?</li></li></ul><li>In summary<br />Single Channel or Multi?<br />Do we want our model to be genuinely understood, Rewards should mirror input<br />Transparent or Opaque<br />Can partnerships work without honesty, can too much honesty hurt?<br />Integration or Isolation<br />Could we become ghetto-ised (are we already)?<br />Volume or Value<br />Out payment model shouldn’t define our working models. Our value is inherent within our reach.<br />
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