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