Affiliate Marketing in the Media Mix<br />Ewan Darby<br />Business Director, Affiliates<br />Neo@Ogilvy<br />
A quick show of hands...<br />If you feel confident that you know the role of an agency in affiliate marketing<br />
The role of an agency is...<br />Defined by our client’s requirements...<br /><ul><li>  Integrated strategy with other media
  3rd party tracking and performance analysis
  Planning
  Network management
  Reporting
  Affiliate recommendations</li></li></ul><li>The merchant/agency/media relationship<br />
According to the A4U web site this session is...<br />...a discussion on how Affiliate Marketing fits within the online ma...
Awareness<br />Consideration<br />Conversion<br />Purchase<br />Loyalty<br />Building media strategy<br />Building awarene...
Awareness<br />Consideration<br />Conversion<br />Purchase<br />Loyalty<br />Building media strategy<br />Offline media<br...
Identifying and Targeting the Audience<br />Search<br /> - generic<br />Display media<br />Retargeting<br />Propensity to ...
Online Media Planning - considerations<br />Competitors<br /><ul><li>What are they doing?
How they’ve done it</li></ul>Audience<br /><ul><li>Current customers
Target customers</li></ul>Offline Activity<br /><ul><li>Media used
Time frames</li></ul>Budget<br /><ul><li>Can everything be achieved?</li></ul>ROI<br /><ul><li>Overall target
Channel target</li></ul>Time period<br /><ul><li>Weeks, months, years?</li></li></ul><li>A simplistic plan...<br />Search ...
A simplistic ROI...<br />Each channel within the plan needs to demonstrate value to the performance of the overall campaig...
Affiliate marketing in the media mix<br />Agencies presenting affiliate marketing within the media planning mix means:<br ...
Affiliate marketing in the media mix<br />But this means greater scrutiny<br />
Adding to the mix – a marketeer’s concerns<br />What does affiliate marketing add to the media mix?<br />Are all affiliate...
An affiliate shaped space<br />
De-duplicating sales<br />De-duplicating sales means agencies and merchants can effectively segment sales<br />It ensures ...
Non de-duped programme<br />Tracking<br />Tag<br />Search<br />SALE MADE<br />Tracking<br />Tag<br />Affiliate<br />Tracki...
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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 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

  1. 1. Affiliate Marketing in the Media Mix<br />Ewan Darby<br />Business Director, Affiliates<br />Neo@Ogilvy<br />
  2. 2. A quick show of hands...<br />If you feel confident that you know the role of an agency in affiliate marketing<br />
  3. 3. The role of an agency is...<br />Defined by our client’s requirements...<br /><ul><li> Integrated strategy with other media
  4. 4. 3rd party tracking and performance analysis
  5. 5. Planning
  6. 6. Network management
  7. 7. Reporting
  8. 8. Affiliate recommendations</li></li></ul><li>The merchant/agency/media relationship<br />
  9. 9. According to the A4U web site this session is...<br />...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<br />
  10. 10.
  11. 11. Awareness<br />Consideration<br />Conversion<br />Purchase<br />Loyalty<br />Building media strategy<br />Building awareness<br />Creating demand<br />Positioning brand<br />Capture demand<br />Converting consumers<br />
  12. 12. Awareness<br />Consideration<br />Conversion<br />Purchase<br />Loyalty<br />Building media strategy<br />Offline media<br />Online display<br />Search<br />Search<br />Affiliates<br />CRM<br />
  13. 13. Identifying and Targeting the Audience<br />Search<br /> - generic<br />Display media<br />Retargeting<br />Propensity to purchase<br />Product Purchasers<br />One-time Customers<br />Merchant Customers<br />Search - Brand<br />Affiliates<br />
  14. 14. Online Media Planning - considerations<br />Competitors<br /><ul><li>What are they doing?
  15. 15. How they’ve done it</li></ul>Audience<br /><ul><li>Current customers
  16. 16. Target customers</li></ul>Offline Activity<br /><ul><li>Media used
  17. 17. Time frames</li></ul>Budget<br /><ul><li>Can everything be achieved?</li></ul>ROI<br /><ul><li>Overall target
  18. 18. Channel target</li></ul>Time period<br /><ul><li>Weeks, months, years?</li></li></ul><li>A simplistic plan...<br />Search and affiliates perform an “always on” task<br />Display provides tactical support around key promotions<br />Re-targeting ensures maximum value is achieved from display expenditure<br />Email can support tacticals as well as being an efficient CRM vehicle<br />
  19. 19. A simplistic ROI...<br />Each channel within the plan needs to demonstrate value to the performance of the overall campaign (ROI)<br />Display has a lower ROI than search and affiliates as their function is higher up the sales funnel<br />Trying to understand value in isolation is difficult and may provide a skewed view of marketing performance<br />
  20. 20. Affiliate marketing in the media mix<br />Agencies presenting affiliate marketing within the media planning mix means:<br />The channel is a serious consideration for marketeers<br />It receives the support that other media channels have enjoyed<br />Merchants understand the opportunity and the risk better than ever<br />
  21. 21. Affiliate marketing in the media mix<br />But this means greater scrutiny<br />
  22. 22. Adding to the mix – a marketeer’s concerns<br />What does affiliate marketing add to the media mix?<br />Are all affiliates appropriate?<br />How can I measure channel effectiveness?<br />How can I measure affiliate effectiveness?<br />What is the implication of de-duping?<br />
  23. 23. An affiliate shaped space<br />
  24. 24. De-duplicating sales<br />De-duplicating sales means agencies and merchants can effectively segment sales<br />It ensures each channel reports last click sales<br />There are caveats<br />It should not be used as a cost-saving measure<br />Savings made should be put back in to the CPA<br />It’s not right for every client<br />It’s not perfect<br />
  25. 25. Non de-duped programme<br />Tracking<br />Tag<br />Search<br />SALE MADE<br />Tracking<br />Tag<br />Affiliate<br />Tracking<br />Tag<br />Display<br />TIME<br />
  26. 26. A de-duped programme<br />SALE MADE<br />Search<br />Floodlight<br />Tag<br />Affiliate<br />Display<br />TIME<br />
  27. 27. De-duping<br />Considerations<br /><ul><li> Which data source is “King”?
  28. 28. Who will it affect most?
  29. 29. What does the client want from it?
  30. 30. How can it be managed professionally and effectively?
  31. 31. What are the benefits for affiliates?</li></li></ul><li>Filtering affiliate partners<br />
  32. 32. Weighing up the opportunity<br />How will a search affiliate affect our own paid search activity?<br />Are voucher codes claiming the last click unfairly?<br />How do email affiliates derive their lists?<br />Can they be de-duped against a merchant’s?<br />How would a loyalty affiliate impact a merchant’s own loyalty programme?<br />If a merchant’s prices are not competitive is it damaging to the brand to appear on price comparison sites?<br />Are meta-search and comparison affiliates populated by habitual brand-switchers?<br />Are they valuable customers, or will I lose them this time next year?<br />
  33. 33. Getting the right balance – affiliate selection<br />Coverage<br />Sales<br />Volumes<br />Channel<br />effectiveness<br />Value<br />Cost<br />Incremental<br />Channel erosion<br />
  34. 34. Selling in to the agency and client<br />Have you spoken to the network?<br />Why do you want to promote the brand?<br />How will you promote the brand?<br />What’s in it for the merchant?<br />Are they doing something similar already?<br />
  35. 35. Further questions and comments<br />
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