Affiliate marketing Australia : Find out what you are missing out on - eCom Expo Melbourne
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Affiliate marketing Australia : Find out what you are missing out on - eCom Expo Melbourne

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Affiliate Marketing – Find Out What You Are Missing Out On ...

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

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  • Last two years of data from a campaign of over 5 years
  • Last two years of data from a campaign of over 5 years
  • In Australia the total retail spend is said to be worth around $240BN per annumCommonwealth Bank's Global Markets Research analysts have produced the most accurate account of this industry to date.From this information source, it is reasonable for them to extrapolate both the size and the shape of the online retail industry.Based on this information, the analysts, headed by Andrew McLennan, have deduced we spent $9.5 billion online last year - which equates to 3.8 per cent of total retail spending and 5.2 per cent of discretionary spending.If consumer spending patterns were static, these numbers would be troubling but not life-threatening to the established bricks-and-mortar shop owners.So online represents about 5% of our annual retail spendDeloitte's report calculates that the internet economy's $50 billion size was half of the powerhouse mining sector's contribution to GDP last year, and just $3 billion less than the retail sector's share.Read more: http://www.smh.com.au/business/booming-internet-hits-80-billion-20110802-1i9zn.html#ixzz1VwfUlVrp The productivity gains alone that Australian businesses get from the Internet are estimated to boost GDP by around $27 billion in 2011Commenting on Commonwealth Bank's Global Markets research report showing Australian consumers spent 9.5 billion online last yearRead more: http://www.benzinga.com/pressreleases/11/07/p1819200/online-shopping-boom-a-boon-for-smart-retailers-as-competition-increase#ixzz1VwgujNgQ1 According to comScore, the value of US e-commerce sales in 2010 was $228 billion (February 2011). 2 According to the IMRG Capgemini e-Retail Sales Index published in January 2011, £58.5 billion were spent online in the UK in 2010. USA 245M adults between 15+
  • Adult population http://www.wolframalpha.comUSA 191.2MUK 41.55M AU 14.61MUK - In 2002 less than £200 million was spent on UK internet advertising – 10 years later, digital advertising spend crosses the £5 billion mark. In 2012 digital advertising increased, like-for-like*, by 12.5% on 2011 to a record annual high of £5.42 billion – up by £607 million from £4.81 billion according to the latest Internet Advertising Bureau UK (IAB) digital adspend report, conducted byPwC.AUD $7.9BUSA IAB Spendhttp://www.iab.net/about_the_iab/recent_press_releases/press_release_archive/press_release/pr-101112AUD$30.3B
  • For the twelve months ending February 2013, Australia’s online retail spending totaled $13.1 billion. This level is equivalent to around 5.9% of Australia’s traditional bricks & mortar retail sector (excluding cafes, restaurants and takeaway food for a like-to-like comparison) for the year to January 2013.UK ecommerce generates AUD $146B http://www.slideshare.net/kedwards100/published-amc-january-2013-deckUSA ecommerce sales AUD$210Bhttp://ycharts.com/indicators/ecommerce_sales
  • Australian ROAS 3.9 = 13.4/3.4UK ROAS 18.71 – 146/7.8USA ROAS 6.9 – 210/30.3
  • Monsoon click-through rate is 21%
  • Paul Smith’s click through rate is 19% (August 2012)
  • 84% of browsers have an "instantaneously unique fingerprint." What's more? Efforts to disguise a browser might actually make consumers more easily identifiable.http://econsultancy.com/us/blog/5923-web-browser-fingerprintshttp://www.clickz.com/clickz/news/2030243/device-fingerprinting-cookie-killerFingerprint tracking can result in greater tracked conversions of 2% – 8% over cookie tracking alone, measured againstGoogle Affiliate NetworkCommission JunctionThus giving you the most accurate picture of your marketing results.
  • dgm is a company that is focussed on performance, we offer affiliate marketing, paid search, seo, mvt. And today we are going to cover, dgm offers marketing solutions across single or multiple channels – including search engine marketing, affiliate marketing and display marketing, with a clear focus on performance and return on investment.
  • 84% of browsers have an "instantaneously unique fingerprint." What's more? Efforts to disguise a browser might actually make consumers more easily identifiable.http://econsultancy.com/us/blog/5923-web-browser-fingerprintshttp://www.clickz.com/clickz/news/2030243/device-fingerprinting-cookie-killerFingerprint tracking can result in greater tracked conversions of 2% – 8% over cookie tracking alone, measured againstGoogle Affiliate NetworkCommission JunctionThus giving you the most accurate picture of your marketing results.

Affiliate marketing Australia : Find out what you are missing out on - eCom Expo Melbourne Presentation Transcript

  • 1. Chris.garner@dg Twitter.com/cgar m-au.com ner2000 www.dgm- Come visit us: au.com Stand 5001Affiliate Marketing: Find Out What You AreMissing Out On
  • 2. Affiliate Marketing: Find Out What You AreMissing Out On
  • 3. 25%
  • 4. Smaller brands
  • 5. Affiliate marketing can deliver 20% of onlinesales
  • 6. the most cost effective channel delivers a ROASof over $15:$1
  • 7. Affiliate marketing can deliver sales in Allcategories
  • 8. Who here works for a company that operates anaffiliate marketing campaign?
  • 9. Affiliate Marketing Explained
  • 10. Affiliate Marketing ExplainedAffiliate Marketing Explained
  • 11. Can anyone name an affiliate marketingprogram?
  • 12. Can anyone name an affiliate website
  • 13. Blog content
  • 14. More traffic each month than Catch of the Day
  • 15. 10X more sales than Facebook
  • 16. Australian Women OnlineBlog content
  • 17. Mamamia40,000 fans on Facebook
  • 18. Reward StyleUSA 3rd largest fashion publisher
  • 19. Cashback site
  • 20. Affiliate Categories - Cashback$266K in sales last month
  • 21. Loyalty site
  • 22. Affiliate Categories – Loyalty / Reward3M members and counting
  • 23. Coupon site
  • 24. Affiliate Categories – Coupons$30M+ sales monthly – part owned by Google
  • 25. Shopping comparison
  • 26. Affiliate Categories - Shopping$115K in sales revenue for our advertisers
  • 27. Affiliate marketing can deliver 20% of onlinesales
  • 28. 2Market share of the years years $100+M
  • 29. Market share of the years $100+M Affiliate c20%
  • 30. LoyaltyUser Reviews Comparison Coupons
  • 31. the most cost effective channel delivers a ROASof over $15:$1
  • 32. $13.2BAUD
  • 33. $146BAUD
  • 34. 9%
  • 35. the most cost effective channel delivers a ROASof over $15:$1
  • 36. the most cost effective channel delivers a ROASof over $15:$1
  • 37. SONY ROAS $20:1
  • 38. Big W ROAS $20:1
  • 39. Babies Got Style ROAS $12:1
  • 40. Westfield ROAS $20:1
  • 41. Affiliate marketing is a “no brainer”
  • 42. Affiliate marketing can deliver sales in Allcategories
  • 43. 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 F500% YoY Growth in affiliate fashion salesBrand L (mature advertiser) sales increased through the channel by 250% YoY
  • 44. 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
  • 45. 28 new customers every minute
  • 46. $60 of fashion sales every minute
  • 47. 15,000 credit card applications every month
  • 48. 1 pizza sold every two minutes
  • 49. $50 of electrical appliances every minute
  • 50. Macro digital marketing Globally
  • 51. $AU 3.342 Billion an increase of $516MillionMarket FY2012/13
  • 52. 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
  • 53. 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
  • 54. Global Advertising ROI
  • 55. Finally the ROASAUD $3.9 AUD $14.7 AUD $6.9Source: 2013 eConsultancy Internet Statistics CompendiumSource: Australian Bureau of Statistics , Wikipedia
  • 56. Affiliate ROI
  • 57. ROAS by channelSearch $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
  • 58. High Low High ROI
  • 59. High Low High ROI
  • 60. Affiliate marketing is the foundation of yourdigital marketing strategy
  • 61. Strategies
  • 62. Looking at shifts in consumer behaviour
  • 63. Consumers Coupons
  • 64. Coupon searches in Google insights Coupon growth in AU has risen significantly since GFC
  • 65. 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 $70,00022% of individual earn Households with income of $100,000 and up were the primary drivers of$100K+ per year coupon growth in 2009.
  • 66. Affluent customersuse more coupons
  • 67. Source: http://www.revtrax.com/press-release.php
  • 68. Use coupons on highmargin products
  • 69. Lenovo 15% off when you spent $1200ResultsCoupon AOV was $12XXNon Coupon AOV was $6XXSales increased by2%Revenue increased 43%
  • 70. 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
  • 71. Use “X% off when youspend $Y” where $Y is50% greater than ATV
  • 72. Use coupons for upselling
  • 73. Plan for yourcoupons to go viral
  • 74. Ensure your onlinecheckout can rejectinactive coupons
  • 75. Set expiry dates andunique identificationto measureredemption
  • 76. Always include Terms& Conditions forcoupon use
  • 77. dgm exclusive coupon rulesUse coupons on high margin productsUse “X% off when you spend $Y” where $Y is 50% greater than ATVUse coupons for up sellingPlan for you coupons to go viralEnsure your online checkout can reject inactive couponsSet expiry dates and unique identification to measure redemptionAlways include Terms & Conditions for coupon use
  • 78. Don’t use couponson your volumedrivers
  • 79. Affiliate marketing is the foundation of yourdigital marketing strategy
  • 80. Strategies
  • 81. Case Study Westfield
  • 82. Westfield Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13500,000 clicks in 10 months
  • 83. Westfield Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-1310,000 sales in 10 months
  • 84. Affiliate marketing is ALWAYS ON strategy
  • 85. Strategies
  • 86. 66% of shoppers will exit a website during their checkoutShopping Cart Abandonment
  • 87. Case Study Monsoon
  • 88. 20 Minutes2 x Subject Line45.75%Fully PersonalizedUrgent29.31%
  • 89. Case Study Paul Smith
  • 90. 40 Minutes2 x Subject Line60.52%Fully PersonalizedCustomer Service27.99%
  • 91. Shopping Cart Abandonment can beimplemented for FREE
  • 92. Strategies
  • 93. 5-7x greater conversion than normal flash bannersDynamic creative
  • 94. Consumers have Banner Blindness
  • 95. Strategies
  • 96. Customer Journey
  • 97. Conversion EmailWho decides which channel is last click
  • 98. ConversionLast click wins
  • 99. Universal Tracking technology Affiliate MarketingDe Duplication across all channel
  • 100. Universal Tracking technology Affiliate MarketingDuplication rates across channels > 30%
  • 101. Case Study Dealsdirect
  • 102. De-Duplication Aug – Oct 2012 2,063 Duplicate Sales $16,374 Cost Efficiencies 27% of sales were not last click $251,903 Duplicate Revenue
  • 103. Duplicated Sales / Revenue The affiliate channel has been instrumental in the decision making purchase Activity de-duped against all channels apart from organic search
  • 104. De duping based on last click can save 30% inefficiencies
  • 105. Affiliate marketing can deliver 20% incrementalAffiliate marketing has the highest ROASUse coupons for up sellingImplement Shopping Cart Abandonment on a CPADe duplicate sales based on last clickTrack multiple devices and do not rely on Cookies!
  • 106. 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
  • 107. Strategies
  • 108. How can you attribute online sales to OfflineAds?
  • 109. Traditional Media
  • 110. Traditional Media
  • 111. Traditional Media
  • 112. CAN’T BE MEASUREDTraditional Media
  • 113. PROBLEM
  • 114. 7.1 million AutoClub members inAustralia
  • 115. ConversionLast click wins
  • 116. Number of coupon sales per month 501Value of coupon sales per month $100KMonthly cost saving $25K
  • 117. SOLUTION…
  • 118. CAN NOW BE MEASURED
  • 119. CAN NOW BE MEASURED