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The Truth Will Out: Disproving Common Misconceptions In Affiliate Marketing
 

The Truth Will Out: Disproving Common Misconceptions In Affiliate Marketing

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Voucher code affiliates steal sales from other affiliates and 'last click wins' is an outdated and unfair reward mechanism for affiliates....

Voucher code affiliates steal sales from other affiliates and 'last click wins' is an outdated and unfair reward mechanism for affiliates.

Affiliate Marketing is full of these and other assumptions yet rarely has any in depth research been carried out to show whether these accepted truths are actually the case.

Having trawled the Affiliate Window database, chopping, splicing and scrutinising the reams of information available, Affiliate Window presents our findings on some generally accepted affiliate marketing assumptions and asks whether it's time to revise some of these commonly held beliefs.

Using actual merchant examples to illustrate how different variables can impact the performance of your programme such as what effect introducing vouchers, paid search activity and cashback sites can have on your campaign or whether rewarding all affiliates involved in a sale rather than just the last referrer is a fair and viable alternative, Affiliate Window will be offering some key considerations for merchants looking to take their programmes to the next level.

Aimed at affiliate managers and merchants who are looking to understand the value of their affiliate traffic within the wider online mix AffiliateWindow will aim to provide plenty of food for thought.

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    The Truth Will Out: Disproving Common Misconceptions In Affiliate Marketing The Truth Will Out: Disproving Common Misconceptions In Affiliate Marketing Presentation Transcript

    • The Truth Will Out: Disproving Common Misconceptions in Affiliate Marketing Kevin Edwards Strategy Director, Affiliate Window
    • Some Caveats & Explanations
      • Relies on correct affiliates categorising themselves accurately
      • Not all voucher code directory sales were the result of voucher codes being used
      • Two months of data used for all examples, May-June 2009
      • Only affiliate channel data has been used; we are unable to make conclusions about merchants’ additional online channels
      • All merchants used are exclusive to the network so we are comparing complete affiliate data
      • All merchants work with all affiliate types although some have varying commissions and T&Cs
      • Only merchants with meaningful data chosen
      • None allow brand bidding; all have relatively strict PPC T&Cs
    • Voucher Code sites are goal hangers who steal sales at the last minute
    •  
    • Number of Referrers – Gifts   Single Referrer Two Referrers Other Referrers Total Merchant 1 87.1 10.1 2.7 100 Merchant 2 88.6 9.6 1.8 100 Merchant 3 86.8 10.5 2.7 100 TOTAL 87.8 10.0 2.3 100
    • Number of Referrers – Gifts
    • Number of Referrers – Mobiles   Single Referrer Two Referrers Other Referrers Total Merchant 1 92.3 6.7 1.0 100 Merchant 2 91.2 7.6 1.3 100 Merchant 3 86.9 10.7 2.4 100 TOTAL 89.6 8.7 1.7 100
    • Number of Referrers - Mobiles
    • Number of Referrers – Electricals   Single Referrer Two Referrers Other Referrers Total Merchant 1 82.3 14.2 3.6 100 Merchant 2 87.0 10.5 2.5 100 Merchant 3 87.0 10.5 2.5 100 TOTAL 85.0 12.1 2.9 100
    • Number of Referrers – Electricals
    • Winners & Losers - Electricals
    • Winners & Losers – Mobiles
    • Winners & Losers – Gifts
    • Latency – Click to sale speed Minutes Percentage of Sales
    • Latency – Click to sale speed Minutes Percentage of Sales
    • Latency – Gifts code (general) Minutes Percentage of Sales
      • 19% of VC sales between 3-5 mins
      • 12.5% of other affiliate sales
      • 16% of ‘True Content’ sales
    • Latency – Click to sale, electricals Minutes Percentage of Sales
      • 16% of VC sales in first 5 mins
      • 19% of other affiliate sales in first 5 mins
      • 19% of ‘True Content’ sales in first 5 mins
    • Latency – Electrical code (product) Minutes Percentage of Sales
      • 6% of VC sales in first 2 mins
      • 9% of other affiliate sales in first 2 mins
      • 8% of ‘True Content’ sales in first 2 mins
    • Latency – Electrical code (general) Minutes Percentage of Sales
      • 15% of VC sales in first 2 mins
      • 6% of other affiliate sales in first 2 mins
      • 4% of ‘True Content’ sales in first 2 mins
      • 16% increase in sales during code period
      • 2% increase in multiple referrer sales
      • Most first click VC sales lose out to VC sites
    • Conclusion
      • Small minority of sales are multi referrer
      • When there is a multiple referrer sales, loyalty/reward sites are much more likely to take sale
      • Using meaningful data, price comparison and PPC lose out on first click vs. last click;
      • Negligible difference in the percentage of multi-referrer sales during strong code period
      • Voucher code sites most overwritten by other voucher code sites
    • Last click wins is outmoded and doesn’t fairly reward affiliates...
    • Is last click wins unfair?
      • If so few sales are multiple referrer should we move to another system?
      • If we decide on a fairer system, what model could we use?
      • With fairness do we lose transparency?
      • How does it work on a practical level?
      • What values do you use to decide your multi-attribution model?
    • Attribution Choices First Click Acquisition Last Click Conversion Even Split Egalitarian Weighted Recency Budget Spend
    • Last Click Wins £6 £0 £0
    • First Click Wins £0 £6 £0
    • Every Click Wins £2 £2 £2
    • Every Click Wins - Weighted £3 £1 £2
    • Multi Attribution Models - Mobiles First Click Equal Click Weighted Last Weighted First
    • Multi Attribution Models - Electricals First Click Equal Click Weighted Last Weighted First
    • Multi Attribution Models - Gifts First Click Equal Click Weighted Last Weighted First
    • Average Order Values - Electricals Number of Referrers +7% +14% +25.1% +35%
    • Average Order Values - Gifts Number of Referrers +12.8% +31.8%
    • Where’s the value? Affiliate multi-attribution isn’t necessarily the answer but it could be a contributory element of a wider value system Value System Average Order Value New Customer Acquistion Contribution in the sales journey Sales Volume Conversion Rate ?
    • Kevin Edwards, Strategy Director 020 7553 0354 07974 810 547 [email_address]