Is Affiliate Marketing Really Worthwhile - A4U Expo Amsterdam 2009


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Matt Bailey, Head of Affiliate at i-level, presents on "Is Affiliate Marketing Really Worthwhile?"

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  • Is Affiliate Marketing Really Worthwhile - A4U Expo Amsterdam 2009

    1. 1. Is Affiliate Marketing Really Worthwhile?<br />Matt Bailey<br />Head of Affiliate<br />i-level<br />
    2. 2. YES<br />...if it’s managed correctly<br />
    3. 3. What are we going to talk about?<br />Context – Why are we asking this question?<br />Looking past the last click<br />More than a single channel<br />Are all sales the same?<br />Maximising your campaign effectiveness<br />
    4. 4. Who Am I?<br />Head of Affiliate at i-level<br />Chair of IAB’s Affiliate Marketing Council<br />Passionate advocate of performance marketing<br />
    5. 5. Uncertain Climate<br />Unprecedented Times<br />
    6. 6. How online is doing<br />Economy shrank 2.9% in Q1 2009 <br />Unemployment up by 29% in the last year<br />17p in every £ spent online<br />50% spent online by 2014<br />Sources: ONS (April 09), National Staistics, IMRG CapGemini e-Retail Sales Index <br />
    7. 7. Performance Marketing in a Recession<br />Low risk marketing channel<br />Paying after the money is in the till<br />Scaleable<br />LET’S NOT WASTE A GOOD RECESSION<br />
    8. 8. SCRUTINY<br />
    9. 9. What clients want...<br />Lower cost per sale<br />More sales<br />Incremental sales<br />Better sales<br />
    10. 10. Looking past the last click<br />
    11. 11.
    12. 12. Sale<br />Sale<br />The last event<br />Event type<br />Display Impression<br />Display Click<br />Paid Search<br />Natural Search<br />Affiliates<br />Last Exposure<br />
    13. 13. Sales journeys are complex<br />Event type<br />E5<br />Display Impression<br />Display Click<br />E4<br />Paid Search<br />Natural Search<br />Affiliates<br />E3<br />E2<br />E1 <br />Conversion Event<br />Sale<br />
    14. 14. Evidence for both incremental sales and interception<br />2. Other->Affiliate<br />Journeys (-)<br />1. Affiliate–only<br />Journeys (+)<br />3. Affiliate ->Other<br />Journeys (+)<br />Sale<br />
    15. 15. What you pay for<br />Affiliate Only<br />Other to affiliate<br />Last click sales<br />
    16. 16. True Value<br />Affiliate Only<br />Other to affiliate<br />True value<br />Affiliate to other<br />
    17. 17. Determining the worth<br />100 sales<br />Last Click Sales<br />80 sales<br />Affiliate Only<br />30<br />Affiliate to other<br />20<br />Other to affiliate<br />90 sales<br />True Value<br />
    18. 18. More than a single channel<br />
    19. 19. PPC Brand<br />Price Comparison<br />Voucher Code<br />Loyalty/ Cashback<br />New Technologies <br />High Traffic/ Portal<br />True Content<br />Email<br />
    20. 20. Affiliate types interact in different ways<br />Event type<br />Paid Search<br />Content<br />Price Comparison<br />Incentive<br />Voucher<br />Other<br />Share of journey events<br />Transaction<br />01 Jan 09 – 04 Mar 09 <br />
    21. 21. Breaking out affiliates by category<br />Display Click<br />Paid Search <br />Natural Search <br />Affiliate Content<br />Affiliate Cashback<br />Affiliate Voucher<br />Sale<br />
    22. 22. What types of activity feeds sales, by type<br />Display Click<br />Paid Search <br />Natural Search <br />Affiliate Content<br />Affiliate Cashback<br />Affiliate Voucher<br />
    23. 23. Clear difference in journey lengths<br />% Sales<br />Number of exposures<br />
    24. 24. What does this show?<br />Different affiliates operate in different ways<br />They require specific:<br />Approaches<br />Marketing collateral<br />Remuneration models<br />
    25. 25. Are all sales the same?<br />
    26. 26. Can you use affiliates to:<br />Make people spend more?<br />Drive new customers?<br />Stay with you longer?<br />Buy sooner?<br />
    27. 27. Average basket value<br />
    28. 28. New vs Existing Customers<br />Where is the brand loyalty, with you or the affiliate?<br />Would the sale have come to you anyway?<br />Reward affiliates for driving new customers?<br />
    29. 29. Lifetime Value<br />Some affiliate models promote switching<br />Do you measure the lifetime value of sales through different channels?<br />Should an affiliate be rewarded for driving better customers?<br />
    30. 30. Affiliates convert sales quicker<br />Sale event type<br />Display Click<br />NaturalSearch<br />Paid Search<br />Affiliates<br />
    31. 31. Using this information to maximise your campaign effectiveness<br />
    32. 32. Looking past the last click<br />Analyse what you are paying affiliates<br />Remember last click isn’t everything<br />
    33. 33. Determining the worth<br />100 sales<br />Last Click Sales<br />80 sales<br />Affiliate Only<br />30<br />Affiliate to other<br />20<br />Other to affiliate<br />90 sales<br />True Value<br />
    34. 34. Determining the worth<br />100 sales<br />Last Click Sales<br />80 sales<br />Affiliate Only<br />50 sales<br />Affiliate to other<br />20<br />Other to affiliate<br />50 sales<br />True Value<br />
    35. 35. More than a single channel<br />Understand different affiliate types<br />How do they interact with each other?<br />Bespoke approach for each one<br />
    36. 36. More than a single channel<br />Can they be used to complement your existing search strategy?<br />Incremental value or cannibalisation? How do we harness them and achieve our aims?<br />PPC Affiliates<br />Cashback and Incentive sites<br />Do they add incremental value or simply cannibalise other channels?<br />What offers should we be pushing and how do we retain control?<br />Voucher Code Sites<br />Email affiliates<br />Are you providing them with the right tools to promote you?<br />How do we stay ahead of the curve whilst protecting ourselves at the same time?<br />Emerging Technologies<br />Long Tail Content<br />
    37. 37. How can we use affiliates?<br />
    38. 38. Pull<br />Push<br /><ul><li>Capture all traffic looking for your products
    39. 39. Price Comparison
    40. 40. Product based content sites
    41. 41. Brand/Generic PPC
    42. 42. Get your brand on front of online shoppers
    43. 43. Voucher sites
    44. 44. Cashback
    45. 45. Email</li></li></ul><li>EPC = CPA & CTR & OSC<br />Pay affiliates more<br /><ul><li>Compelling creative
    46. 46. Strong consumer offers/ voucher codes
    47. 47. Securing good placements on the affiliate site
    48. 48. Deeplinking to specific products
    49. 49. Reducing the customer journey
    50. 50. Easy site to use</li></li></ul><li>Are all sales the same?<br />
    51. 51. Making people spend more<br />
    52. 52. Driving new customers?<br />Can affiliates be incentivised to drive new customers?<br />Pay a bonus for new customers<br />Is it something they can influence?<br />Does it vary for different affiliate types? <br />
    53. 53. Driving better customers<br />Do certain affiliates/ affiliate types drive better customers already?<br />Do merchants measure this?<br />Would certain affiliates be better incentivised working on a lifetime rev share model?<br />
    54. 54. Aiding conversion<br />Some (content) affiliates are losing sales<br />Instead of paying them more, how can we help them convert?<br />Sale<br />Sale<br />
    55. 55. Is Affiliate Marketing Worth It?<br />All marketers are under intense scrutiny<br />Incredible opportunities for us all<br />
    56. 56. What you need to demonstrate<br />Affiliates is a key solus channel<br />You treat affiliate types differently<br />You understand what different affiliates are delivering for you.<br />Always be in beta<br />
    57. 57.<br /><br />
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