Maximising Affiliate Revenue In A Digital Age Final

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  • 1. Maximising Affiliate Revenue in a Digital Age Presented by: Liane Dietrich Managing Director, LinkShare Ltd.
  • 2. Today’s Agenda  Introduction • Liane Dietrich, Managing Director, LinkShare • LinkShare Corporation Industry trends – LinkShare‟s Online Consumer Trendwatch 2009   Maximising affiliate marketing success • Make the most of the diversifying advertiser base • How this creates more opportunity for all • How can you adapt to/make the most of the shift Copyright 2008 LinkShare Corporation. All rights reserved.
  • 3. The LinkShare Network First affiliate marketing network –  founded in 1996  Over 2.2 million publishers have joined the LinkShare Affiliate Marketing and Lead Generation Network  One of the largest performance marketing networks in the world based on Gross Merchant Sales (GMS) Copyright 2008 LinkShare Corporation. All rights reserved.
  • 4. Brands are doing it… Copyright 2008 LinkShare Corporation. All rights reserved.
  • 5. Online Consumer Trendwatch Survey 2009 Commissioned by LinkShare in association with Penn, Schoen & Berland Associates Inc., March 2009 Copyright 2008 LinkShare Corporation. All rights reserved.
  • 6. In the coming year, Online is set to increase, offline to decline +22% -19% vs. Online net Offline net Fewer The same More In the next year, do you think that you will make more, the same amount, or fewer purchases than you did last year? Copyright 2008 LinkShare Corporation. All rights reserved.
  • 7. Clear majority in favour of shopping online On both sides of the Atlantic there is a clear preference for online shopping over offline. Copyright 2008 LinkShare Corporation. All rights reserved.
  • 8. Why are they preferring offline? Copyright 2008 LinkShare Corporation. All rights reserved.
  • 9. Why are they preferring online? Copyright 2008 LinkShare Corporation. All rights reserved.
  • 10. Why do they prefer shopping online? Online shoppers are choosing it for convenience and price, but also to compare products and get the information they need “With much less time to do a normal shop it’s much easier for me” “I find it easier to change between retailers and find the bargains I'm looking for” “I like it because you see a much wider choice and price of goods and spend no money on transport” “You’re able to compare products much more” Which of the following are reasons for why you prefer shopping online? Copyright 2008 LinkShare Corporation. All rights reserved.
  • 11. Finding the info they want online  78% don’t get enough information from TV advertising  92% have more confidence in online information than salespeople  81% are doing online research “most of the time” before buying a product  73% conducting online product research several times a month Copyright 2008 LinkShare Corporation. All rights reserved.
  • 12. Online research is now mainstream Info shopping is on the increase How frequently do you do online research before you purchase each of the following types of products? (Most of the time / Occasionally) Copyright 2008 LinkShare Corporation. All rights reserved.
  • 13. Finding info from a wide range of sources Online shoppers are finding a number of different channels useful – they are looking for value from multiple sources Copyright 2008 LinkShare Corporation. All rights reserved.
  • 14. Online shopping driven by shopaholics Over half of all purchases are made by 24% of customers – let’s call them Shopaholics Proportion of all online purchases Shopaholics as a proportion of the online shopping population Excluding everyday items like food, how many times do you think you purchase something Copyright 2008 LinkShare Corporation. each month? online All rights reserved.
  • 15. For non-shopaholics, bad time may provide a nudge However, 29% of the remaining, lower frequency shoppers expect to migrate their shopping online if their financial situation gets tougher – so let’s think of these people as our Recession Shoppers If your financial situation gets tougher, which of the following do you think you are most likely to do? Copyright 2008 LinkShare Corporation. All rights reserved.
  • 16. Why do they prefer shopping online? Our Recession Shoppers are more concerned about price than other online shoppers and also use the net to research their goods “For a better price” “Ease of getting relevant items and price” “Cheaper and can compare prices and also read reviews” “Good offers, good prices” Copyright 2008 LinkShare Corporation. the following are Which of All rights reserved. reasons for why you prefer shopping online?
  • 17. So how do we reach out to them?  43% of Recession Shoppers have purchased a product online that they wouldn’t otherwise because of a voucher  69% have found a review by another consumer helpful  83% have used a comparison shopping engine “Online you can thoroughly  60% cite being able to research research what you want before purchase.” information as a reason for shopping online Copyright 2008 LinkShare Corporation. All rights reserved.
  • 18. But online shoppers are looking for value...  26% of online shoppers are receiving email alerts from voucher sites  41% of online shoppers say that they find voucher sites very or somewhat useful  1 in 200 visits to online retail sites come directly from vouchers sites – and it is the fastest growing area of internet retail (Robin Goad, Hitwise) Copyright 2008 LinkShare Corporation. All rights reserved.
  • 19. What are they going to buy more of? Clothing and groceries are the most likely candidates for online shopping growth over the course of the next year % expecting to spend more online on this item in the next year And do you expect to spend more, less, or the same amount online on these types of Copyright 2008 LinkShare Corporation. Allin the next year? products rights reserved.
  • 20. What are they going to buy more of? Looking at the net change in spend – beauty, home and travel all represent opportunities – they have lower than average spend at present, but above average potential growth Groceries Clothing Music Current online annual spend Toys & Games Books Beauty & Personal Care Computers & Electronics Office Supplies Travel Luxury or designer goods Home & Garden products Sport, Health & Fitness Jewellery Flowers Products Net change in online spend Copyright 2008 LinkShare Corporation. All rights reserved.
  • 21. Reasons to be cheerful  31% of shoppers will make more online purchases this year  58% expect to spend the same or more online next year  66% will purchase the same proportion or more online if their economic situation gets tougher Copyright 2008 LinkShare Corporation. All rights reserved.
  • 22. CHALLENGES Hidden costs “Delivery charges” “Shipping and handling charges can be expensive” Online becomes too complicated “Stores are less time consuming” “You can see what you want without having to trawl through different web pages.” Empathy with the high street 35% of those who shop in store say “it is important to support community shops in a recession” Copyright 2008 LinkShare Corporation. All rights reserved.
  • 23. CHALLENGES ...and whilst purchases online look set to increase, consumers expect to spend less in the coming year Consumers are going to put pressure on you to give them a good deal! Copyright 2008 LinkShare Corporation. All rights reserved.
  • 24. Conclusion - Key time for Affiliate Marketing Online purchases set to increase, with consumers actually preferring to shop online Internet has become a tool for researching all purchases Recession shoppers  internet is a means of saving money. Leverage the Recession Shopper Copyright 2008 LinkShare Corporation. All rights reserved. Source: LinkShare Online Shopping Survey with JupiterResearch 2008
  • 25. MERCHANTS and AFFILIATES 1. Expand your approach for long-term goals  Merchants (theoretically) ~ 80% of sales by top 20% of affiliates Affiliates – Same: majority of income from the big programmes  Expand Partnerships – across verticals, outside the box  Copyright 2008 LinkShare Corporation. All rights reserved.
  • 26. MERCHANTS 1. Expand your approach for long-term goals  Say yes to more publishers Prospect – Find New Affiliates tool  Copyright 2008 LinkShare Corporation. All rights reserved.
  • 27. MERCHANTS 1. Expand your approach for long-term goals Consider all types of Sales Partners Copyright 2008 LinkShare Corporation. All rights reserved.
  • 28. MERCHANTS 1. Expand your approach for long-term goals  Broad Distribution  New Types  Use affiliates for Research & Development Copyright 2008 LinkShare Corporation. All rights reserved.
  • 29. AFFILIATES 1. Expand your approach for long-term goals  Focus beyond brands  Showcase your strengths rather than a brand logo  Leverage what consumers want  Link types & merchandising Copyright 2008 LinkShare Corporation. All rights reserved.
  • 30. AFFILIATES 2. Utilise all the tools at your disposal •Product Linkfinder •Search across multiple advertisers for specific products •Sort results by price, name or category Copyright 2008 LinkShare Corporation. All rights reserved.
  • 31. AFFILIATES 2. Utilise all the tools at your disposal •Deeplinking •Link to specific pages on an advertiser site •Send traffic to the most qualified page possible Copyright 2008 LinkShare Corporation. All rights reserved.
  • 32. AFFILIATES 2. Utilise all the tools at your disposal •Look out for Deeplinking solutions Copyright 2008 LinkShare Corporation. All rights reserved.
  • 33. AFFILIATES 2. Utilise all the tools at your disposal •WordPress Plugins 1. RSS DealFeed • Display & manage RSS feeds in your blog 2. AdMix • Use advertiser RSS feeds as blog posts 3. LinkLookup • Create deep links • Search for product links Copyright 2008 LinkShare Corporation. All rights reserved.
  • 34. MERCHANTS 2. Utilise all the tools at your disposal •Product Feeds!! •Now you can see why it‟s so important to provide them… Copyright 2008 LinkShare Corporation. All rights reserved.
  • 35. MERCHANTS 3. Increase Conversion Through Merchandising How it is typically How it should be Copyright 2008 LinkShare Corporation. All rights reserved.
  • 36. AFFILIATES 3. Increase Conversion Through Merchandising •Be creative Copyright 2008 LinkShare Corporation. All rights reserved.
  • 37. AFFILIATES 3. Increase Conversion Through Merchandising •Dynamic Rich Media Copyright 2008 LinkShare Corporation. All rights reserved.
  • 38. AFFILIATES 3. Increase Conversion Through Merchandising Copyright 2008 LinkShare Corporation. All rights reserved.
  • 39. MERCHANTS and AFFILIATES 4. Focus on seasonal activities Copyright 2008 LinkShare Corporation. All rights reserved.
  • 40. MERCHANTS and AFFILIATES 5. Improve working relationships Merchants: Communicate Incentivise Equip Special affiliate offer Affiliates: Utilise Copyright 2008 LinkShare Corporation. All rights reserved.
  • 41. MERCHANTS and AFFILIATES 5. Improve working relationships Copyright 2008 LinkShare Corporation. All rights reserved.
  • 42. MERCHANTS and AFFILIATES 6. Test What Works Perfect channel to “test” what is bringing you the best commissions   Make sure you understand the reporting tools  Recreate success with other advertisers/websites Copyright 2008 LinkShare Corporation. All rights reserved.
  • 43. SUMMARY • Leverage the recession shopper • Expand your approach to maximise your long-term return • Use all the tools available • Merchandise – give consumers what they want • Merchants - make your affiliates your „partners‟ and „brand advocates‟ • Affiliates – respond & feedback Copyright 2008 LinkShare Corporation. All rights reserved.
  • 44. Thank You Liane Dietrich ldietrich@linkshare.com Copyright 2008 LinkShare Corporation. All rights reserved.