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Is Affiliate Marketing Really Worthwhile - A4U Expo Amsterdam 2009
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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?"

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

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  • Transcript

    • 1. Is Affiliate Marketing Really Worthwhile?
      Matt Bailey
      Head of Affiliate
      i-level
    • 2. YES
      ...if it’s managed correctly
    • 3. 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
    • 4. Who Am I?
      Head of Affiliate at i-level
      Chair of IAB’s Affiliate Marketing Council
      Passionate advocate of performance marketing
    • 5. Uncertain Climate
      Unprecedented Times
    • 6. 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
    • 7. 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
    • 8. SCRUTINY
    • 9. What clients want...
      Lower cost per sale
      More sales
      Incremental sales
      Better sales
    • 10. Looking past the last click
    • 11.
    • 12. Sale
      Sale
      The last event
      Event type
      Display Impression
      Display Click
      Paid Search
      Natural Search
      Affiliates
      Last Exposure
    • 13. Sales journeys are complex
      Event type
      E5
      Display Impression
      Display Click
      E4
      Paid Search
      Natural Search
      Affiliates
      E3
      E2
      E1
      Conversion Event
      Sale
    • 14. Evidence for both incremental sales and interception
      2. Other->Affiliate
      Journeys (-)
      1. Affiliate–only
      Journeys (+)
      3. Affiliate ->Other
      Journeys (+)
      Sale
    • 15. What you pay for
      Affiliate Only
      Other to affiliate
      Last click sales
    • 16. True Value
      Affiliate Only
      Other to affiliate
      True value
      Affiliate to other
    • 17. Determining the worth
      100 sales
      Last Click Sales
      80 sales
      Affiliate Only
      30
      Affiliate to other
      20
      Other to affiliate
      90 sales
      True Value
    • 18. More than a single channel
    • 19. PPC Brand
      Price Comparison
      Voucher Code
      Loyalty/ Cashback
      New Technologies
      High Traffic/ Portal
      True Content
      Email
    • 20. 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
    • 21. Breaking out affiliates by category
      Display Click
      Paid Search
      Natural Search
      Affiliate Content
      Affiliate Cashback
      Affiliate Voucher
      Sale
    • 22. What types of activity feeds sales, by type
      Display Click
      Paid Search
      Natural Search
      Affiliate Content
      Affiliate Cashback
      Affiliate Voucher
    • 23. Clear difference in journey lengths
      % Sales
      Number of exposures
    • 24. What does this show?
      Different affiliates operate in different ways
      They require specific:
      Approaches
      Marketing collateral
      Remuneration models
    • 25. Are all sales the same?
    • 26. Can you use affiliates to:
      Make people spend more?
      Drive new customers?
      Stay with you longer?
      Buy sooner?
    • 27. Average basket value
    • 28. 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?
    • 29. 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?
    • 30. Affiliates convert sales quicker
      Sale event type
      Display Click
      NaturalSearch
      Paid Search
      Affiliates
    • 31. Using this information to maximise your campaign effectiveness
    • 32. Looking past the last click
      Analyse what you are paying affiliates
      Remember last click isn’t everything
    • 33. Determining the worth
      100 sales
      Last Click Sales
      80 sales
      Affiliate Only
      30
      Affiliate to other
      20
      Other to affiliate
      90 sales
      True Value
    • 34. 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
    • 35. More than a single channel
      Understand different affiliate types
      How do they interact with each other?
      Bespoke approach for each one
    • 36. 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
    • 37. How can we use affiliates?
    • 38. Pull
      Push
      • Capture all traffic looking for your products
      • 39. Price Comparison
      • 40. Product based content sites
      • 41. Brand/Generic PPC
      • 42. Get your brand on front of online shoppers
      • 43. Voucher sites
      • 44. Cashback
      • 45. Email
    • EPC = CPA & CTR & OSC
      Pay affiliates more
      • Compelling creative
      • 46. Strong consumer offers/ voucher codes
      • 47. Securing good placements on the affiliate site
      • 48. Deeplinking to specific products
      • 49. Reducing the customer journey
      • 50. Easy site to use
    • Are all sales the same?
    • 51. Making people spend more
    • 52. 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?
    • 53. 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?
    • 54. Aiding conversion
      Some (content) affiliates are losing sales
      Instead of paying them more, how can we help them convert?
      Sale
      Sale
    • 55. Is Affiliate Marketing Worth It?
      All marketers are under intense scrutiny
      Incredible opportunities for us all
    • 56. 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
    • 57. matt.bailey@i-level.com
      twitter.com/mattb811

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