Affiliate Marketing in India - Presentation at Internet Retail Expo by Swati Bhargava, CEO of Cashkaro.com

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Affiliate marketing is increasingly becoming a very important driver of sales to ecommerce sites. Learn more about how it works from Swati's presentation. Also see global success examples!

Published in: Marketing, Business

Affiliate Marketing in India - Presentation at Internet Retail Expo by Swati Bhargava, CEO of Cashkaro.com

  1. 1. Affiliate marketing is a marketing practice in which a business (‘Advertiser’) rewards one or more affiliates (‘Publishers’) for each visitor or customer brought by the affiliate’s own marketing efforts. 2
  2. 2. There are 4 different parties that are essential to make an affiliate program succeed: 1.Merchant or advertiser 2.Affiliate Network (e.g. Tyroo, OMG, VCommission etc.) 3.Publisher 4.Customer or the Shopper 3
  3. 3.  Performance driven: Pay only if affiliate drives a Sale. No fixed cost  Higher ROI compared to other channels  Often cheaper than PPC on Google  Affiliate marketing kicks in faster than SEO  Affiliates do extensive marketing & provide great brand exposure  Proven concept globally since 20+ years. Pioneered by Amazon since July 1996 4
  4. 4. 1. PRICE COMPARISON SITES  These sites provide convenience of price comparison. They get paid commission from sites they direct traffic to 5 Acquired by Experian for $485million Bought over by ValueClick UK’s #1 Financial Services Comparison website Launched in India by Amazon
  5. 5. 2. COUPON / VOUCHER SITES  Feature Coupons to help shoppers save money  Keep all the commission they get paid from brands they send sales to  Coupons.com in the US filed for $100m IPO 6 Valued at $1 bn. IPO’ed at $100 mn Acquired by RetailMeNot for $40mn Indian Coupon Code Website
  6. 6. 3. CASHBACK SITES  Give members EXTRA CASHBACK on top of Coupons  Share commission with members as ‘Cashback’  RetailMeNot in the US IPO’ed at $1.4billion, raised $190 million 7 Valued at $1.4bn, IPO’ed Biggest UK Cashback websites India’s No. 1 Cashback & Coupon Website
  7. 7. 4. LOYALTY PROGRAMS  Large brands, airlines set up loyalty programs where you earn points when you shop at any of their listed partners via them  Shoppers collect points and can redeem them for rewards 8
  8. 8. 4. BLOGGERS’ SITES & CONTENT MARKETING  Placing links on blogs related to their niche  Banners in Sidebar  Text links in blog post  Recommend products, show videos, podcasts to show products which link directly to ecommerce sites which pay the blogger  Review sites often act as affiliates too 9
  9. 9. 5. PPC affiliate marketing (unattached affiliate marketing) Behind the scenes middle man. Show your affiliate links where possible & earn when people click & shop via your link. Includes Search Publishers 6. Email marketing list affiliates 7. Social media affiliates 8. Content & niche market websites, including product review sites 10
  10. 10.  Having a programme and commission structure in place to attract affiliates  Getting enough affiliates to join your programme  Ability to track which affiliate generated a successful sale or lead  Easy to manage the programme and pay the affiliates  Ability to reject sales or leads if they are fraudulent or payment is not received 11
  11. 11. a) Use an Affiliate Network  Create your own programme on the network  Use network’s tracking software  Let the network promote and recruit your affiliates  Networks manage payments to affiliates Costs: Fee to join network & commission on Sales b) Run your own affiliate programme  Set-up your own programme  Invest in third party tracking software  Market and recruit your own affiliates  Manage your programme yourself (or recruit an agency) Costs: Dedicated team to run programme, tracking software investment, best for larger companies 12
  12. 12. 13
  13. 13.  Advertisers spent £1bn on affiliates, got back £14bn sales. Constitutes 16% of UK ecommerce market  15% year on year uplift  Diverse channel encompassing price comparison, editorial, cashback, voucher codes and loyalty  Spend, revenue, number of affiliates and advertisers all seeing an uplift on last year’s numbers 14
  14. 14. Brands with own affiliate program: Brands working via affiliate network: 15
  15. 15. 16 “Affiliate marketing is an important channel of digital marketing for Myntra.com. A considerable percentage of the business is driven by affiliate channels that are completely measurable unlike many other marketing channels” - Ashutosh Lawaniya, Myntra.com “As sites with better content and value offerings to consumers emerge, the contribution of this channel should see significant growth.” -Binny Bansal, Flipkart.com

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