Affiliate 2.0


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Duncan Jennings, Managing Director of eConversions, presents on Affiliate 2.0 at CJU 2007 London

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Affiliate 2.0

  1. 2. “ Affiliate 2.0 highlights how affiliate marketing is evolving , utilising technology and responding to new challenges in the sector.”
  2. 3. Professional affiliate individuals and companies with dedicated resources Part time affiliates Desktop Widgets & RSS Google AdSense Email Offer Newsletters CPM Banners Cash back and reward sites with long term user bases Free Stuff Sites Closed groups of approved affiliates providing complimentary PPC with performance targets and accountability. Emphasis and rewards on long tail Unauthorised PPC activity High quality sites utilising user generated content and comparison engines Spam SEO sites Affiliate 2.0 Affiliate 1.0 >>>>>
  3. 4. The driving forces behind the move to Affiliate 2.0 are those which affect an affiliates ability to generate sales profitably . This is a performance business so threats and opportunities regarding traffic & sales will always be key drivers for innovation within the space.
  4. 5. <ul><li>Google raises the bar in Paid Search with Adwords Quality Score. Other engines to follow suit </li></ul><ul><li>Search Engines continually improving their organic search algorithms to include harder to game factors such as manual ratings </li></ul><ul><li>Government organisations increasing regulations. Think FSA Compliance & Consumer Credit Act </li></ul>
  5. 6. Market Pressures <ul><li>Maturity and size of the market leads merchants and networks to demand more in terms of accountability, quality and performance </li></ul><ul><li>Web users become smarter and more savvy. Expectation for high quality web sites across the board </li></ul><ul><li>Explosion of social networks and their ability to drive sales through personal recommendations </li></ul>
  6. 7. “ The single biggest difference between Affiliate 1.0 and Affiliate 2.0 is the absolute requirement for quality to truly succeed. The medium to long term upside available to affiliates who invest in quality offerings now far out weighs any short term quick wins.”
  7. 8. <ul><li>‘ Megacap’ affiliate companies are now household names: </li></ul><ul><li> – Due to float for £1 billion + </li></ul><ul><li> - £700 million valuation </li></ul><ul><li> – Acquired by EW Scripps for £210 million </li></ul><ul><li>Kelkoo – Acquired by Yahoo for €475m </li></ul><ul><li>Quidco – To be acquired by….?? </li></ul><ul><li>Huge teams, huge investment, huge pay off </li></ul><ul><li>Search engines, users and the press love the quality </li></ul>
  8. 9. <ul><li>‘ Established Super Affiliates have scaled up into large, professional companies </li></ul><ul><li>Huge reinvestment in staff, technology and web sites </li></ul><ul><li>Particularly prominent within the Paid Search space where eConversions, UK Web Media, Traffic Junction, Traffic Broker and Clicks 2 Customers are all multi million pound businesses in their own right </li></ul><ul><li>Established affiliates launch ‘quality’, innovative new services. Think eCall,, etc </li></ul>
  9. 10. <ul><li>Still a place for smaller individual affiliates </li></ul><ul><li>Must focus on niches and become authorities within them </li></ul><ul><li>No more generic finance portals / shopping / travel </li></ul><ul><li>By focussing on a quality offering within a specific niche an individual affiliate can dominate </li></ul>
  10. 11. <ul><li>Set-up by Mark Smith it has become the authority for train travel on the web </li></ul><ul><li>Award winning with great organic rankings and press. </li></ul><ul><li>Mark now has an attractive asset. Advertisers love it, Google loves it and users love it </li></ul><ul><li>Acquisition Target? Another upside to investing in quality! </li></ul><ul><li>Do you think Mark would have been so successful if he’d decided to create a huge ‘travel portal’? </li></ul>
  11. 13. Web 2.0 trends offer even more opportunities to those affiliates who create quality content, tools and services.
  12. 14. <ul><li>Allows affiliates to compete with traditional publishers who are now competing hard for the same traffic. </li></ul><ul><li>Creates opportunity for exponential content growth feeding organic traffic. </li></ul><ul><li>Adds value – users like it, Google likes it, people recommend it. </li></ul><ul><li>Examples include: Tripadvisor, Holiday Watchdog, Travel Library, Review Centre etc. </li></ul>
  13. 15. <ul><li>Previously closed networks beginning to open their doors </li></ul><ul><li>The Facebook Developer Platform </li></ul><ul><li>Developing a small application is quick and has the opportunity to spread exponentially. </li></ul><ul><li>iLike sees exponential growth gaining 3 millions users in 2 weeks through launch of Facebook App. </li></ul><ul><li>Quality is the bottom line. Users aren’t going to take up valuable profile real estate if the offering isn’t compelling. </li></ul>
  14. 17. <ul><li>Widgets are mini applications that provide content / services between two platforms </li></ul><ul><li>Google AdSense is a widget, content is pumped from one location to another </li></ul><ul><li>The widget is end of the pipe where the content or service is displayed </li></ul><ul><li>There are many widget platforms including the browser, operating system, mobile phones and proprietary platforms e.g. Netvibes, iGoogle, Facebook, mobiles. </li></ul>
  15. 18. <ul><li>Any ecommerce site with an affiliate programme has the potential to be ‘widgetisied.’ </li></ul><ul><li>Easy eBay is a simple example of a successful widget for the OS X Dashboard platform </li></ul><ul><li>Mpire offers a number of widgets in the shopping space including a Firefox / IE plugin that provides price comparison inline with the product you a viewing. </li></ul><ul><li>Again quality is king. Successful affiliate widgets either solve a common problem or tap into a social trend on the web with the potential to go viral. </li></ul>
  16. 20. <ul><li>Merchants and networks play a key role in enabling affiliates to maximise the opportunities available through exploiting web 2.0 </li></ul><ul><li>Affiliates require easy access to products, data and pricing through API’s, web services and XML feeds to feed widgets, price comparison and user generated content. </li></ul><ul><li>Merchants need to be forward thinking and accept that their brand/products will be atomised by affiliates. </li></ul><ul><li>Excellent communication from all parties. </li></ul>
  17. 21. 7/7 If you’d like a copy of this presentation OR If you’d like to revolutionise your paid search marketing email --------------------------------------------- Check out for the smarter way to find local businesses