Affiliate marketing: the bleeding edge
Upcoming SlideShare
Loading in...5
×
 

Affiliate marketing: the bleeding edge

on

  • 1,613 views

Speaker session from Affiliate Summit East 2010 - A practical look at innovations in affiliate marketing driving the industry forward. Framing the discussion around the 'eras' of affiliate marketing ...

Speaker session from Affiliate Summit East 2010 - A practical look at innovations in affiliate marketing driving the industry forward. Framing the discussion around the 'eras' of affiliate marketing in the past, present and future. Slightly tongue in cheek.

Statistics

Views

Total Views
1,613
Views on SlideShare
1,613
Embed Views
0

Actions

Likes
1
Downloads
22
Comments
0

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Affiliate marketing: the bleeding edge Affiliate marketing: the bleeding edge Presentation Transcript

    • Affiliate Summit East 2010 Innovate! New Exciting Applications of Affiliate Marketing Joe Stepniewski Co-Founder, Skimlinks
    • What, who, when?
    • 1934: Theorie der Wirtschaftlichen Entwicklung , Joseph Schumpeter defined economic innovation…
      • A new ‘good ’ consumers aren’t familiar with
      • A better quality of an existing product/service
      • A new method of production or packaging of something
      • Finding a totally new market
      Innovation defined The Theory of Economic Development, 1934
      • Entrepreneurs, or wild human spirits (he coined Unternehmergeist - German for entrepreneur-spirit)
      Where does innovation come from?
    • 1934: Theorie der Wirtschaftlichen Entwicklung , Joseph Schumpeter defined economic innovation… OK – We got the wild spirits bit sorted
      • Companies with resources to invest in R&D
      Where does innovation come from?
      • Limited marketing reach
      • Limited sources of traffic
      • Limited media or space
      Innovation often sparks from limited resources or limited environment
    • Affiliate marketing = entrepreneurs + savvy retailers + limited resources = consistent innovation Photo credit: Shawn Collins
    • The Innovation Landscape
    • Innovation and adoption are increasing the rate of growth of affiliate spending US Affiliate Marketing spending 1994-2016 $bn $2bn 16% p.a. $7bn 20+% p.a.?
    • The eras of affiliate marketing Wild west era Domestication era Affilination era US Affiliate Marketing spending 1994-2016 Ubiquity era $bn
    • The Wild West: Ruled by cowboys
    • Innovation came from the adult industry
      • Cybererotica: 1994
      • Amazon.com: 1996
      • Linkshare & Be Free: 1996
      • Shawn Collins: 1997
      • Commission Junction: 1998
      Wild West Era (WWE)
      • Choice of CPC, CPA and CPL programs
      • Geo-targeted banners
      • 500,000+ affiliates
      • $250m revenues, 40% annual growth
      • Still only do checks to non US affiliates 
      Adult Friend Finder’s innovation: helping establish the affiliate model Source: Business 2.0 Magazine, Adult Friend Finder
    • Domestication: Taming the beast
      • Explosive growth: ecommerce, new sectors
      • Innovations challenged by rules & restrictions
      • New innovation grows as a result
      Domestication Era (DE) 2001-2008
      • PPC affiliates
      • Squeeze pages / email affiliates
      • Cashback / Rewards
      • Coupon codes
      • Data feeds
      DE Innovations: 2001-2008
      • Affiliates penalized in organic/PPC listings
      • Looked for alternative traffic sources
      • Now
      • Coupon code sites sit at end of purchase funnel
      • Rewards sites rely on viral traffic
      • Email affiliates just need to capture your address
      Search traffic restrictions drove innovation
    • New innovations displace old revenue streams Affiliate Window’s affiliate revenue sources 2005-2010
      • Controversial practices on coupon codes
        • ‘Click to reveal’
        • Expired coupon codes
        • Poaching exclusive codes
      • Industry response through IAB Best Practice Guidelines
      Innovation must not run unchecked
      • Hides or displays code box based on referring URL
      • Stops sales leakage for non-coupon code sites
      • Control exclusive deals
      Merchant innovation in response to coupon code challenges
    • Ubiquity: Affiliates are everywhere
      • Tipping point of major brands with programs
      • Recognizable affiliate consumer brands
      • Intersection with tech startups
      • Innovation explosion
      • Social media integration
      Ubiquity Era (UE) 2008-2013
    • Major brands have affiliate programs
      • Over 20,000 affiliate programs in 2010
    • Consumers use affiliate sites every day (and understand the model)
      • Startups see appeal of affiliate marketing
      • Low barriers to entry
      • No need for ad-units
      • Social activity can drive purchases
      Affiliate marketing, meet my friend: tech startup
    • 10 innovations improving the purchasing funnel
    • Advertising
    • Merchants helping with distribution of data feeds through ad-units
      • 300x250 (MPU) ad-unit easy to add to an affiliate site
      • Pre-load particular products/categories
      • Targeting a visitor with an ad for a product that has been previously viewed or placed in cart
      • Retargeted customers are 4x more likely to convert than new customers
      • Affiliates can recognize abandoned shopping cart and offer a discount, coupon or bundle deal
      Retargeting in affiliate marketing Source: Mythings.com
    • Retargeting with reward model driven by CPA Source: Mythings.com Free for advertiser Post-impression cookie CPA on sale
      • Post-impression/post-view cookie, dropped after 2 seconds
      • Potential clash as merchant may de-dupe across affiliate channel
      • Networks have indicated click cookie would probably supersede impression cookie
      PI Cookies carefully added to the marketing mix
    • Social Media
      • Embed a Dominos widget easily
      • Available for Facebook, Myspace & more
      Social media embedding brings affiliate marketing to masses
      • Simple interface
      • Add ID via signup to Affiliate Window
      Interfaces adapted for ‘micro-affiliates’
      • Blippy shares your purchase-stream
      • Automatically based on merchant or bank statement
      • Swipe.ly provides similar service
      Purchase sharing unearths products I care about
      • Thingbuzz tracks ‘trending products’ across Twitter
      Crowdsource what’s hot right now
    • Product Discovery
    • How do ‘real people’ search or discover products?
    • Mashup datafeeds with apps to create value
      • Official site limited in search capability
      • Merchant & affiliate worked together to identify the area of weakness
      • Affiliate site sits alongside official listing in PPC space
      • Augments official offering with destination-based search
      Fast-track innovation with affiliate merchant collaboration
      • Popshops’ storefronts and widgets
      • 60m products to configure into a storefront
      Configure specific storefronts for groups of products or themes
    • On-page monetization
      • Product references linked to top performing merchant
      • Geo-targeted link based on visitor
      • Pop-up price product info or price comparison
      Automatically link keywords to affiliate links
    • Associate products right at the image source
    • Affilination: The future of affiliate marketing
      • Social media dominance
      • Microaffiliates
      • Micropayments
      • Real-time data
      • Multi-attribution
      Affilination Era (AE) 2013-?
      • Activity stream will be affiliated
      • Foursquare linked to physical purchases, Facebook aggregates online purchases (through Blippy etc)
      • Content sites will still benefit from generating purchase-intent (discovery, reviews)
      Social media a dominating influence
      • Everyone can be an affiliate
      • Challenge of low earnings threshold mitigated with virtual currency/credits on social networks
      • Micropayments e.g. electronic cash solutions will make it more compelling and compatible with offline
      Microaffiliates & Micropayments
      • Micro-trends – hot product sales by hour or day
      • ‘ Pre-purchase’ click data – most popular products being viewed right now
      • Purchasing clusters could drive further group activity – Groupon style
      • Requires product-level tracking at affiliate networks (Amazon does it today)
      • Instant reward notification
      Real-time data will redefine ‘impulse buys’
      • Watch Eat, Pray, Love the movie
      • Buy the fragrance, the eReader, and pillowcases
      Merchandizing will continue to drive product association to film, music, books
    • Redefinition of affiliate marketing
      • Referral marketing or “Referratization”
      • Not the process of turning into a furry animal
    • Referratization
      • The tracking and reward of every individual part of a referral; whereby referrals are driving the majority of online purchases
    • Innnovation will drive this industry forward
      • Looking at the past: we can see the cycle of innovation, challenges and new innovation
      • Looking at today: new innovations expanding the scope of affiliate marketing
      • Looking at the future: Wild West 2.0 as affiliate marketing goes mass-market
    • Takeaway tip: Read “The Referral Engine”
      • http://bit.ly/refengine
      Yes this is an affiliate link
      • Contact
      • joe@skimlinks.com
      • @digijoe
      • Thanks to
      • Kevin Edwards – Affiliate Window
      • Matt Bailey – 7ThingsMedia
      Any questions?