Affiliate Marketing Within The Media Mix
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Affiliate Marketing Within The Media Mix

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A discussion on how Affiliate Marketing fits within the online marketing mix. To assist affiliates specifically in understanding why decisions are made by agencies and merchants and how they are ...

A discussion on how Affiliate Marketing fits within the online marketing mix. To assist affiliates specifically in understanding why decisions are made by agencies and merchants and how they are seldom made in isolation. Why merchants may even question the value of some of the internal channels such as vouchers, paid search or cashback and where and why affiliates are called into question. An understanding of these issues will enable affiliates to tailor their strategy to meet client demands and attempt to future proof strategy.

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Affiliate Marketing Within The Media Mix Affiliate Marketing Within The Media Mix Presentation Transcript

  • Affiliate Marketing in the Media Mix
    Ewan Darby
    Business Director, Affiliates
    Neo@Ogilvy
  • A quick show of hands...
    If you feel confident that you know the role of an agency in affiliate marketing
  • The role of an agency is...
    Defined by our client’s requirements...
    • Integrated strategy with other media
    • 3rd party tracking and performance analysis
    • Planning
    • Network management
    • Reporting
    • Affiliate recommendations
  • The merchant/agency/media relationship
  • According to the A4U web site this session is...
    ...a discussion on how Affiliate Marketing fits within the online marketing mix. To assist affiliates specifically in understanding why decisions are made by agencies and merchants and how they are seldom made in isolation. Why merchants may even question the value of some of the internal channels such as vouchers, paid search or cashback and where and why affiliates are called into question. An understanding of these issues will enable affiliates to tailor their strategy to meet client demands and attempt to future proof strategy
  • Awareness
    Consideration
    Conversion
    Purchase
    Loyalty
    Building media strategy
    Building awareness
    Creating demand
    Positioning brand
    Capture demand
    Converting consumers
  • Awareness
    Consideration
    Conversion
    Purchase
    Loyalty
    Building media strategy
    Offline media
    Online display
    Search
    Search
    Affiliates
    CRM
  • Identifying and Targeting the Audience
    Search
    - generic
    Display media
    Retargeting
    Propensity to purchase
    Product Purchasers
    One-time Customers
    Merchant Customers
    Search - Brand
    Affiliates
  • Online Media Planning - considerations
    Competitors
    • What are they doing?
    • How they’ve done it
    Audience
    • Current customers
    • Target customers
    Offline Activity
    • Media used
    • Time frames
    Budget
    • Can everything be achieved?
    ROI
    • Overall target
    • Channel target
    Time period
    • Weeks, months, years?
  • A simplistic plan...
    Search and affiliates perform an “always on” task
    Display provides tactical support around key promotions
    Re-targeting ensures maximum value is achieved from display expenditure
    Email can support tacticals as well as being an efficient CRM vehicle
  • A simplistic ROI...
    Each channel within the plan needs to demonstrate value to the performance of the overall campaign (ROI)
    Display has a lower ROI than search and affiliates as their function is higher up the sales funnel
    Trying to understand value in isolation is difficult and may provide a skewed view of marketing performance
  • Affiliate marketing in the media mix
    Agencies presenting affiliate marketing within the media planning mix means:
    The channel is a serious consideration for marketeers
    It receives the support that other media channels have enjoyed
    Merchants understand the opportunity and the risk better than ever
  • Affiliate marketing in the media mix
    But this means greater scrutiny
  • Adding to the mix – a marketeer’s concerns
    What does affiliate marketing add to the media mix?
    Are all affiliates appropriate?
    How can I measure channel effectiveness?
    How can I measure affiliate effectiveness?
    What is the implication of de-duping?
  • An affiliate shaped space
  • De-duplicating sales
    De-duplicating sales means agencies and merchants can effectively segment sales
    It ensures each channel reports last click sales
    There are caveats
    It should not be used as a cost-saving measure
    Savings made should be put back in to the CPA
    It’s not right for every client
    It’s not perfect
  • Non de-duped programme
    Tracking
    Tag
    Search
    SALE MADE
    Tracking
    Tag
    Affiliate
    Tracking
    Tag
    Display
    TIME
  • A de-duped programme
    SALE MADE
    Search
    Floodlight
    Tag
    Affiliate
    Display
    TIME
  • De-duping
    Considerations
    • Which data source is “King”?
    • Who will it affect most?
    • What does the client want from it?
    • How can it be managed professionally and effectively?
    • What are the benefits for affiliates?
  • Filtering affiliate partners
  • Weighing up the opportunity
    How will a search affiliate affect our own paid search activity?
    Are voucher codes claiming the last click unfairly?
    How do email affiliates derive their lists?
    Can they be de-duped against a merchant’s?
    How would a loyalty affiliate impact a merchant’s own loyalty programme?
    If a merchant’s prices are not competitive is it damaging to the brand to appear on price comparison sites?
    Are meta-search and comparison affiliates populated by habitual brand-switchers?
    Are they valuable customers, or will I lose them this time next year?
  • Getting the right balance – affiliate selection
    Coverage
    Sales
    Volumes
    Channel
    effectiveness
    Value
    Cost
    Incremental
    Channel erosion
  • Selling in to the agency and client
    Have you spoken to the network?
    Why do you want to promote the brand?
    How will you promote the brand?
    What’s in it for the merchant?
    Are they doing something similar already?
  • Further questions and comments