Is Affiliate Marketing Really Worthwhile - A4U Expo Amsterdam 2009
Upcoming SlideShare
Loading in...5
×
 

Is Affiliate Marketing Really Worthwhile - A4U Expo Amsterdam 2009

on

  • 966 views

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

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

Statistics

Views

Total Views
966
Views on SlideShare
964
Embed Views
2

Actions

Likes
1
Downloads
25
Comments
0

1 Embed 2

http://www.slideshare.net 2

Accessibility

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

Is Affiliate Marketing Really Worthwhile - A4U Expo Amsterdam 2009 Is Affiliate Marketing Really Worthwhile - A4U Expo Amsterdam 2009 Presentation Transcript

  • Is Affiliate Marketing Really Worthwhile?
    Matt Bailey
    Head of Affiliate
    i-level
  • YES
    ...if it’s managed correctly
  • What are we going to talk about?
    Context – Why are we asking this question?
    Looking past the last click
    More than a single channel
    Are all sales the same?
    Maximising your campaign effectiveness
  • Who Am I?
    Head of Affiliate at i-level
    Chair of IAB’s Affiliate Marketing Council
    Passionate advocate of performance marketing
  • Uncertain Climate
    Unprecedented Times
  • How online is doing
    Economy shrank 2.9% in Q1 2009
    Unemployment up by 29% in the last year
    17p in every £ spent online
    50% spent online by 2014
    Sources: ONS (April 09), National Staistics, IMRG CapGemini e-Retail Sales Index
  • Performance Marketing in a Recession
    Low risk marketing channel
    Paying after the money is in the till
    Scaleable
    LET’S NOT WASTE A GOOD RECESSION
  • SCRUTINY
  • What clients want...
    Lower cost per sale
    More sales
    Incremental sales
    Better sales
  • Looking past the last click
  • Sale
    Sale
    The last event
    Event type
    Display Impression
    Display Click
    Paid Search
    Natural Search
    Affiliates
    Last Exposure
  • Sales journeys are complex
    Event type
    E5
    Display Impression
    Display Click
    E4
    Paid Search
    Natural Search
    Affiliates
    E3
    E2
    E1
    Conversion Event
    Sale
  • Evidence for both incremental sales and interception
    2. Other->Affiliate
    Journeys (-)
    1. Affiliate–only
    Journeys (+)
    3. Affiliate ->Other
    Journeys (+)
    Sale
  • What you pay for
    Affiliate Only
    Other to affiliate
    Last click sales
  • True Value
    Affiliate Only
    Other to affiliate
    True value
    Affiliate to other
  • Determining the worth
    100 sales
    Last Click Sales
    80 sales
    Affiliate Only
    30
    Affiliate to other
    20
    Other to affiliate
    90 sales
    True Value
  • More than a single channel
  • PPC Brand
    Price Comparison
    Voucher Code
    Loyalty/ Cashback
    New Technologies
    High Traffic/ Portal
    True Content
    Email
  • Affiliate types interact in different ways
    Event type
    Paid Search
    Content
    Price Comparison
    Incentive
    Voucher
    Other
    Share of journey events
    Transaction
    01 Jan 09 – 04 Mar 09
  • Breaking out affiliates by category
    Display Click
    Paid Search
    Natural Search
    Affiliate Content
    Affiliate Cashback
    Affiliate Voucher
    Sale
  • What types of activity feeds sales, by type
    Display Click
    Paid Search
    Natural Search
    Affiliate Content
    Affiliate Cashback
    Affiliate Voucher
  • Clear difference in journey lengths
    % Sales
    Number of exposures
  • What does this show?
    Different affiliates operate in different ways
    They require specific:
    Approaches
    Marketing collateral
    Remuneration models
  • Are all sales the same?
  • Can you use affiliates to:
    Make people spend more?
    Drive new customers?
    Stay with you longer?
    Buy sooner?
  • Average basket value
  • New vs Existing Customers
    Where is the brand loyalty, with you or the affiliate?
    Would the sale have come to you anyway?
    Reward affiliates for driving new customers?
  • Lifetime Value
    Some affiliate models promote switching
    Do you measure the lifetime value of sales through different channels?
    Should an affiliate be rewarded for driving better customers?
  • Affiliates convert sales quicker
    Sale event type
    Display Click
    NaturalSearch
    Paid Search
    Affiliates
  • Using this information to maximise your campaign effectiveness
  • Looking past the last click
    Analyse what you are paying affiliates
    Remember last click isn’t everything
  • Determining the worth
    100 sales
    Last Click Sales
    80 sales
    Affiliate Only
    30
    Affiliate to other
    20
    Other to affiliate
    90 sales
    True Value
  • Determining the worth
    100 sales
    Last Click Sales
    80 sales
    Affiliate Only
    50 sales
    Affiliate to other
    20
    Other to affiliate
    50 sales
    True Value
  • More than a single channel
    Understand different affiliate types
    How do they interact with each other?
    Bespoke approach for each one
  • More than a single channel
    Can they be used to complement your existing search strategy?
    Incremental value or cannibalisation? How do we harness them and achieve our aims?
    PPC Affiliates
    Cashback and Incentive sites
    Do they add incremental value or simply cannibalise other channels?
    What offers should we be pushing and how do we retain control?
    Voucher Code Sites
    Email affiliates
    Are you providing them with the right tools to promote you?
    How do we stay ahead of the curve whilst protecting ourselves at the same time?
    Emerging Technologies
    Long Tail Content
  • How can we use affiliates?
  • Pull
    Push
    • Capture all traffic looking for your products
    • Price Comparison
    • Product based content sites
    • Brand/Generic PPC
    • Get your brand on front of online shoppers
    • Voucher sites
    • Cashback
    • Email
  • EPC = CPA & CTR & OSC
    Pay affiliates more
    • Compelling creative
    • Strong consumer offers/ voucher codes
    • Securing good placements on the affiliate site
    • Deeplinking to specific products
    • Reducing the customer journey
    • Easy site to use
  • Are all sales the same?
  • Making people spend more
  • Driving new customers?
    Can affiliates be incentivised to drive new customers?
    Pay a bonus for new customers
    Is it something they can influence?
    Does it vary for different affiliate types?
  • Driving better customers
    Do certain affiliates/ affiliate types drive better customers already?
    Do merchants measure this?
    Would certain affiliates be better incentivised working on a lifetime rev share model?
  • Aiding conversion
    Some (content) affiliates are losing sales
    Instead of paying them more, how can we help them convert?
    Sale
    Sale
  • Is Affiliate Marketing Worth It?
    All marketers are under intense scrutiny
    Incredible opportunities for us all
  • What you need to demonstrate
    Affiliates is a key solus channel
    You treat affiliate types differently
    You understand what different affiliates are delivering for you.
    Always be in beta
  • matt.bailey@i-level.com
    twitter.com/mattb811