Is Affiliate Marketing Really Worthwhile?
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Is Affiliate Marketing Really Worthwhile? Presentation Transcript

  • 1. Is Affiliate Marketing Really Worthwhile? Matt Bailey Head of Affiliate i-level
  • 2. YES ...if it’s managed correctly
  • 3. What are we going to talk about?
    • Context – Why are we asking this question?
    • Looking past the last click
    • More than a single channel
    • Are all sales the same?
    • Maximising your campaign effectiveness
  • 4. Who Am I?
    • Head of Affiliate at i-level
    • Chair of IAB’s Affiliate Marketing Council
    • Passionate advocate of performance marketing
  • 5. Unprecedented Times Uncertain Climate
  • 6. How online is doing
    • Economy shrank 2.9% in Q1 2009
    • Unemployment up by 29% in the last year
    • 17p in every £ spent online
    • 50% spent online by 2014
    Sources: ONS (April 09), National Staistics, IMRG CapGemini e-Retail Sales Index
  • 7. Performance Marketing in a Recession
    • Low risk marketing channel
    • Paying after the money is in the till
    • Scaleable
    LET’S NOT WASTE A GOOD RECESSION
  • 8. SCRUTINY
  • 9. What clients want...
    • Lower cost per sale
    • More sales
    • Incremental sales
    • Better sales
  • 10. Looking past the last click
  • 11.  
  • 12. The last event Last Exposure Event type Display Impression Display Click Paid Search Natural Search Affiliates Sale Sale
  • 13. Sales journeys are complex E1 Conversion Event E2 E3 E4 E5 Event type Display Impression Display Click Paid Search Natural Search Affiliates Sale
  • 14. Evidence for both incremental sales and interception 1. Affiliate–only Journeys (+) 2. Other->Affiliate Journeys (-) 3. Affiliate ->Other Journeys (+) Sale
  • 15. What you pay for Affiliate Only Other to affiliate Last click sales
  • 16. True Value Affiliate Only Other to affiliate True value Affiliate to other
  • 17. Determining the worth 100 sales 80 sales 20 30 90 sales Last Click Sales Affiliate Only Affiliate to other Other to affiliate True Value
  • 18. More than a single channel
  • 19. PPC Brand New Technologies High Traffic/ Portal True Content Price Comparison Voucher Code Loyalty/ Cashback Email
  • 20. Affiliate types interact in different ways Transaction Share of journey events 01 Jan 09 – 04 Mar 09 Event type Content Price Comparison Incentive Voucher Paid Search Other
  • 21. Breaking out affiliates by category Display Click Natural Search Affiliate Voucher Affiliate Content Affiliate Cashback Paid Search Sale
  • 22. What types of activity feeds sales, by type Display Click Natural Search Affiliate Voucher Affiliate Content Affiliate Cashback Paid Search
  • 23. Clear difference in journey lengths % Sales Number of exposures
  • 24. What does this show?
    • Different affiliates operate in different ways
    • They require specific:
      • Approaches
      • Marketing collateral
      • Remuneration models
  • 25. Are all sales the same?
  • 26.
    • Can you use affiliates to:
      • Make people spend more?
      • Drive new customers?
      • Stay with you longer?
      • Buy sooner?
  • 27. Average basket value
  • 28. New vs Existing Customers
    • Where is the brand loyalty, with you or the affiliate?
    • Would the sale have come to you anyway?
    • Reward affiliates for driving new customers?
  • 29. Lifetime Value
    • Some affiliate models promote switching
    • Do you measure the lifetime value of sales through different channels?
    • Should an affiliate be rewarded for driving better customers?
  • 30. Affiliates convert sales quicker Sale event type Display Click Paid Search Affiliates Natural Search
  • 31. Using this information to maximise your campaign effectiveness
  • 32. Looking past the last click
    • Analyse what you are paying affiliates
    • Remember last click isn’t everything
  • 33. Determining the worth 100 sales 80 sales 20 30 90 sales Last Click Sales Affiliate Only Affiliate to other Other to affiliate True Value
  • 34. Determining the worth 100 sales 80 sales 20 50 sales 50 sales Last Click Sales Affiliate Only Affiliate to other Other to affiliate True Value
  • 35. More than a single channel
    • Understand different affiliate types
    • How do they interact with each other?
    • Bespoke approach for each one
  • 36. More than a single channel PPC Affiliates Cashback and Incentive sites Voucher Code Sites Emerging Technologies Email affiliates Long Tail Content Can they be used to complement your existing search strategy? Do they add incremental value or simply cannibalise other channels? Are you providing them with the right tools to promote you? How do we stay ahead of the curve whilst protecting ourselves at the same time? What offers should we be pushing and how do we retain control? Incremental value or cannibalisation? How do we harness them and achieve our aims?
  • 37. How can we use affiliates?
  • 38. Pull
    • Capture all traffic looking for your products
      • Price Comparison
      • Product based content sites
      • Brand/Generic PPC
    • Get your brand on front of online shoppers
      • Voucher sites
      • Cashback
      • Email
    Push
  • 39. EPC = CPA & CTR & OSC Pay affiliates more
    • Compelling creative
    • Strong consumer offers/ voucher codes
    • Securing good placements on the affiliate site
    • Deeplinking to specific products
    • Reducing the customer journey
    • Easy site to use
  • 40. Are all sales the same? Plan Execute Test Optimise
  • 41. Making people spend more
  • 42. Driving new customers?
    • Can affiliates be incentivised to drive new customers?
      • Pay a bonus for new customers
    • Is it something they can influence?
    • Does it vary for different affiliate types?
  • 43. Driving better customers
    • Do certain affiliates/ affiliate types drive better customers already?
    • Do merchants measure this?
    • Would certain affiliates be better incentivised working on a lifetime rev share model?
  • 44. Aiding conversion
    • Some (content) affiliates are losing sales
    • Instead of paying them more, how can we help them convert?
    Sale Sale
  • 45. Is Affiliate Marketing Worth It?
    • All marketers are under intense scrutiny
    • Incredible opportunities for us all
  • 46. What you need to demonstrate
    • Affiliates is a key solus channel
    • You treat affiliate types differently
    • You understand what different affiliates are delivering for you.
    • Always be in beta
  • 47. [email_address] twitter.com/mattb811