Affiliate Marketing – Find Out What You Are Missing Out On dgm; Chris Garner, Performance Strategy Director, dgm From coupons to cash back, PPC to review sites, dgm will walk you through the anatomy of an Affiliate Campaign. With only one of the top 20 multi-channel retailers in Australia involved in affiliate marketing the market is still hugely untapped. In the UK alone this industry contributes over $6bn to online retail economy. Discover the fundamentals involved in launching and running a successful Affiliate Campaign. The presentation will provide insight into the Australian Market, key strategies to drive growth and case studies from local retailers that you can take away and apply to your business. Key Takeaways: • International and local affiliate marketing best practice • How to use coupon sites to increase order value • Using de-duplication to pay for only real sales • Using shopping feeds to create interactive widgets across 100s of publishers

1. Chris.garner@dg Twitter.com/cgar
m-au.com ner2000
www.dgm- Come visit us:
au.com Stand 5001
Affiliate Marketing: Find Out What You Are
Missing Out On

2. Affiliate Marketing: Find Out What You Are
Missing Out On

3. 25%

4. Smaller
brands

11. Affiliate marketing can deliver 20% of online
sales

12. the most cost effective channel delivers a ROAS
of over $15:$1

13. Affiliate marketing can deliver sales in All
categories

14. Who here works for a company that operates an
affiliate marketing campaign?

15. Affiliate Marketing Explained

16. Affiliate Marketing Explained
Affiliate Marketing Explained

17. Can anyone name an affiliate marketing
program?

23. Can anyone name an affiliate website

24. Blog content

25. More traffic each month than Catch of the Day

26. 10X more sales than Facebook

27. Australian Women Online
Blog content

28. Mamamia
40,000 fans on Facebook

29. Reward Style
USA 3rd largest fashion publisher

30. Cashback site

31. Affiliate Categories - Cashback
$266K in sales last month

32. Loyalty site

33. Affiliate Categories – Loyalty / Reward
3M members and counting

34. Coupon site

35. Affiliate Categories – Coupons
$30M+ sales monthly – part owned by Google

36. Shopping comparison

37. Affiliate Categories - Shopping
$115K in sales revenue for our advertisers

38. Affiliate marketing can deliver 20% of online
sales

39. 2
Market share of the years
years
$100+M

40. Market share of the years
$100+M
Affiliate
c20%

42. Loyalty
User Reviews
Comparison
Coupons

43. the most cost effective channel delivers a ROAS
of over $15:$1

47. $13.2B
AUD

48. $146B
AUD

49. 9%

51. the most cost effective channel delivers a ROAS
of over $15:$1

52. the most cost effective channel delivers a ROAS
of over $15:$1

53. SONY ROAS $20:1

54. Big W ROAS $20:1

55. Babies Got Style ROAS $12:1

56. Westfield ROAS $20:1

57. Affiliate marketing is a “no brainer”

58. Affiliate marketing can deliver sales in All
categories

61. Validated sales revenue
Sales Revenue
$2,500,000.00
Brand R
Brand Q
$2,000,000.00
Brand P
Brand O
$1,500,000.00 Brand N
Brand M
$1,000,000.00 Brand L
Brand K
Brand J
$500,000.00
Brand I
Brand H
$- Brand G
Brand F
500% YoY Growth in affiliate fashion sales
Brand L (mature advertiser) sales increased through the channel by 250% YoY

62. Q4 2012 Hitwise top 10 AU Apparel
sites
Apparel Hitwise share Affiliate Program
OZ sale 6.45% dgm
ASOS 5.11% Global
brandsExclusive 3.99% dgm
The Iconic 3.56% dgm
buyinvite 3.34% dgm
EziBuy 1.29% dgm
boohoo 1.22% dgm
StyleTread 1.13% dgm
Cotton On 1.10% No
SurfStitch 1.07% dgm
Lucy in the Sky 0.90% No
Rebel 0.89% dgm

63. 28 new customers every minute

64. $60 of fashion sales every minute

65. 15,000 credit card applications every month

66. 1 pizza sold every two minutes

67. $50 of electrical appliances every minute

68. Macro digital marketing Globally

69. $AU 3.342 Billion an increase of $516Million
Market FY2012/13

71. IAB advertising spend per capita
AUD $228.7 pa AUD $190.1 pa AUD $163.7 pa
Source: IAB USA / UK / Australia PwC 2013 report

72. Digital consumer spend per capita
AUD $900 pa AUD $2485 pa AUD $1098 pa
Source: 2013 eConsultancy Internet Statistics Compendium
Source: Australian Bureau of Statistics , Wikipedia

73. Global Advertising ROI

74. Finally the ROAS
AUD $3.9 AUD $14.7 AUD $6.9
Source: 2013 eConsultancy Internet Statistics Compendium
Source: Australian Bureau of Statistics , Wikipedia

75. Affiliate ROI

76. ROAS by channel
Search $10.13 Affiliate $20.00 Display $1.80 Social Media $0.70
Affiliate is 800% more cost effective than Display
Affiliate is 100% more cost effective than Search

78. High
Low High
ROI

79. High
Low High
ROI

80. Affiliate marketing is the foundation of your
digital marketing strategy

81. Strategies

82. Looking at shifts in consumer behaviour

83. Consumers Coupons

84. Coupon searches in Google insights
Coupon growth in AU has
risen significantly since
GFC

85. Affluent Consumers Use More Coupons (USD)
38% of coupon users earn More affluent households dominate
coupon usage: 38% of “super heavy”
$80K+ per year users and 41% of “enthusiasts” come
from households with incomes greater
than $70,000
22% of individual earn Households with income of $100,000
and up were the primary drivers of
$100K+ per year
coupon growth in 2009.

86. Affluent customers
use more coupons

87. Source: http://www.revtrax.com/press-release.php

89. Use coupons on high
margin products

93. Lenovo 15% off when you spent $1200
Results
Coupon AOV was $12XX
Non Coupon AOV was $6XX
Sales increased by2%
Revenue increased 43%

95. Average Transaction Value for Dell
$100M+ sales over 3 years
ATV for Different Channels
$1,400
$1,200
$1,000
$800
$600
$400
$200
$0
Coupons Display Banners Email CRM PPC Search
2009 2010 2011 2012
Coupons deliver higher 30% higher Average
transaction value than all other channels for Dell

96. Use “X% off when you
spend $Y” where $Y is
50% greater than ATV

97. Use coupons for up
selling

100. Plan for your
coupons to go viral

102. Ensure your online
checkout can reject
inactive coupons

104. Set expiry dates and
unique identification
to measure
redemption

105. Always include Terms
& Conditions for
coupon use

107. dgm exclusive coupon rules
Use coupons on high margin products
Use “X% off when you spend $Y” where $Y is 50% greater than ATV
Use coupons for up selling
Plan for you coupons to go viral
Ensure your online checkout can reject inactive coupons
Set expiry dates and unique identification to measure redemption
Always include Terms & Conditions for coupon use

109. Don’t use coupons
on your volume
drivers

110. Affiliate marketing is the foundation of your
digital marketing strategy

111. Strategies

112. Case Study Westfield

113. Westfield
Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13
500,000 clicks in 10 months

114. Westfield
Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13
10,000 sales in 10 months

115. Affiliate marketing is ALWAYS ON strategy

116. Strategies

117. 66% of shoppers will
exit a website during
their checkout
Shopping Cart Abandonment

118. Case Study Monsoon

119. 20 Minutes
2 x Subject Line
45.75%
Fully Personalized
Urgent
29.31%

120. Case Study Paul Smith

121. 40 Minutes
2 x Subject Line
60.52%
Fully Personalized
Customer Service
27.99%

122. Shopping Cart Abandonment can be
implemented for FREE

123. Strategies

124. 5-7x greater conversion than
normal flash banners
Dynamic creative

125. Consumers have Banner Blindness

126. Strategies

127. Customer Journey

128. Conversion
Email
Who decides which channel is last click

129. Conversion
Last click wins

132. Universal
Tracking
technology
Affiliate
Marketing
De Duplication across all channel

133. Universal
Tracking
technology
Affiliate
Marketing
Duplication rates across channels > 30%

134. Case Study Dealsdirect

135. De-Duplication Aug – Oct 2012
2,063
Duplicate Sales
$16,374 Cost Efficiencies
27%
of sales were not last click
$251,903
Duplicate Revenue

136. Duplicated Sales / Revenue
The affiliate channel has been instrumental in the decision making
purchase
Activity de-duped against all channels apart from organic search

137. De duping based on last click can save 30% in
efficiencies

139. Affiliate marketing can deliver 20% incremental
Affiliate marketing has the highest ROAS
Use coupons for up selling
Implement Shopping Cart Abandonment on a CPA
De duplicate sales based on last click
Track multiple devices and do not rely on Cookies!

140. Chris.garner@dg Twitter.com/cgar
BRANDED INTRO SLIDE
m-au.com ner2000
• Who we are www.dgm- Come visit us:
au.com Stand 5001
• What we cover
• Case studies what
do they cover
• Quick snapshot

141. Strategies

142. How can you attribute online sales to Offline
Ads?

143. Traditional Media

144. Traditional Media

145. Traditional Media

146. CAN’T BE
MEASURED
Traditional Media

150. PROBLEM

151. 7.1 million Auto
Club members in
Australia

156. Conversion
Last click wins

157. Number of coupon sales per month 501
Value of coupon sales per month $100K
Monthly cost saving $25K

158. SOLUTION…

159. CAN NOW BE
MEASURED

160. CAN NOW BE
MEASURED