An introduction to 'affiliate marketing: a love story'. A status of BE affiliation anno 2012-2013, tips and tricks + reading list

1. Welcome at …
Affiliate marketing: a love story?

2. Different How to Facts & The
Intro
Types do it Figures Future

3. The name is Bond. James Bond.

4. Me & affiliate marketing
Personal facts Professional facts

5. Affiliate marketing & me
Me, myself and I
+5 years of affiliate marketing experience
Managed BE accounts for large local and international brands:
p.e.
Managed pan-european affiliate accounts for large international
companies: p.e.
Headed up BE operations of existing affiliate clients (6 team
members, + 100 clients,…)
Part of affiliate success team at Tradedoubler
Passionate affiliate myself!

6. Affiliate marketing & me
The company: Tradedoubler
International performance-based marketing company
Founded in 1999 (Be: °2005 - + 2012)
Worldwide reach
2.000 well known brands
140.000 active publishers (4.000 in Belgium)
https://www.youtube.com/watch?v=CrxijXsM7AY

7. My Precious.

8. Affiliate marketing
Experience with affiliate marketing?
What is affiliate marketing?
Affiliate marketing = performance based marketing
Affiliates/partners promote a merchant's product/service and get
remunerated for every sale, visit or subscription sent to the merchant.

9. Affiliate marketing
Experience with affiliate marketing?
What is affiliate marketing?
The most frequently used payment models:
* pay-per-view (CPM)
* pay-per-click (CPC)
* pay-per-lead (CPL)
* pay-per-sale (CPS)
* pay-per-download/install (CPD/CPI)
Source: http://www.amnavigator.com/questions.htm

10. Affiliate marketing
Experience with affiliate marketing?
What is affiliate marketing?
Affiliate marketing is one of the most powerful and effective
customer acquisition tools available to an online merchant
today. You decide what commission to pay, and pay only when
results (sales, leads and/or clicks) are obvious.
Source: http://www.amnavigator.com/questions.htm

11. Affiliate marketing
Tracking Software
Goes
through
Clicks on
Redirects
to
Visitor
Affiliate
Website
Sends
commission
Merchant Site
Advertiser = Merchant
Publisher = Affiliate

12. Affiliate marketing
It’s all about the…
touch points, conversion paths & insights

13. Affiliate marketing
Specific case on a travel client... Customer journey

14. I’m going to make him
an offer he can’t refuse!

15. Affiliate marketing
An advertiser wants to...
…generate
Awareness Interest Desire Action
by creating…
Impressions Clicks Leads Sales
(CPM) (CPC) (CPL) (CPS)
Acquisition
(CPA)

16. Affiliate marketing
Outdoor
Attention
TV
Interest
Radio Display
Search
Desire Press
Action Affiliate

17. Affiliate marketing / Performance vs. Branding
Branding: Performance:
Strong emphasis on company Strong emphasis on direct
brand response & interaction
Spreading awareness among Converting potential
potential customers customers into actual
customer
Hard to measure ROI Easy to measure ROI
Pay per impressions/views Pay per
Click/Lead/Sale/Download/Ins
tall
• http://www.youtube.com/watch?v=BufQcgzo5yE
• http://www.youtube.com/watch?v=rV9e3lbsq4c • http://www.autoleningsimulatie.com
• http://www.youtube.com/watch?v=CTg8jGlTFY0

18. You want the truth?
You can’t handle the truth!

19. The Wall

20. The Code Red
C A
O F D S
M F I E
P I S A
S A L P R
M O E R I L C
O C M I A A H
B I A S T Y
. I A I O E
. L L L N
. E
Classic thinking:
Each channel … its own strategy, its own partner, its own payment model

21. The truth…
SEARC H DISPLAY
SOCIAL
EMAIL
CONTENT
MOBILE
RETARGETING, BLOGS,…
Integrated thinking:
All online channels work together to generate conversions.

22. Show me the money!

23. Media Ad Spending

24. Media Ad Spending

25. Digital Ad Spending

26. Digital Ad Spending

27. Digital Ad Spending

28. Affiliate Ad Spending
Size of affiliate market
(rev €m) 2011
UK 396
Germany 295
France 171
Brazil 133
Russia 83
Netherlands 77
Italy 44
Switzerland 43
Spain 42
Sweden 37
Poland 34
Norway 30
Denmark 30
Belguim 26
Austria 25
Finland 13
Ireland 11
Portugal 5
Lithuania 1
0 50 100 150 200 250 300 350 400 450
size of affiliate market (rev €m) 2011

29. Affiliate facts
Origin & History:
- ° 1989: US – William Tobin
- °1994: CDNow
- °1996: Amazon
- °2001: Amazon takes over CDNow activities
1999

30. Affiliate facts - BE
You had me at ’hello’! – Networks...

31. Affiliate facts - BE
Who is out there?!
750 + Advertisers
25.000+ 26 million €
Publishers (2011)

32. Life is like a box of chocolates.
You never know what you are
going to get!

34. Different types
PPC / Search
What?
 SEA traffic, Facebook Ads
How?
1. Direct linking to homepage or product page
2. Link using Landing page to homepage or product page
3. Brand / Brand + Generic / Generic
4. Payment model: CPC-based (rate depends on competitiveness of
keywords)
Examples
- Direct Linking (“philips”, “Philips Lumea”)
- Link using Landing page (“Dell Vouchers” , “Disneyland Paris”)

35. Different types
Shopping portals / directories
What?
 Online shopping centers
How?
1. Overview of online shops in one place
2. Offer seasonal promotions or promote best performing products
3. Payment model: CPL/CPS
Examples
• http://www.shopsafe.co.uk/
• http://www.surfplaza.be

36. Different types
Cashback / Reward
What?
 Give a part of earnings back to the visitors
How?
1. Visitors get cash or rewards in the form of redeemable points
2. Target extremely loyal user base with personal mailings
3. Payment model: CPL/CPS
Examples
• http://www.quidco.co.uk/
• http://www.euroclix.be

37. Different types
Price Comparison
What?
 Compare prices of different advertisers.
How?
1. Implementation of advertiser XML feeds which contain product
catalogues (product name, price, availability, reviews …)
2. Payment model: CPC-based (rate depends on the product)
Examples
• http://www.comparer.be
• http://www.beslist.be

38. Different types
Voucher / Discount code websites - apps
What?
 Overview of online/offline redeemable vouchers
How?
1. Offer all existing vouchers in one place
2. Keep loyal user base up to date using RSS and email
3. Payment model: CPL/CPS
Examples
• http://www.vouchercodes.co.uk/
• http://www.pricereduc.com
• http://www.korting.be/

39. Different types
UGC
What?
 Vertical niche websites (specialized websites, blogs, …)
How?
1. Unique user generated content (blogposts, static pages …)
2. Drive organic traffic
3. Offer additional value on top of advertiser promotions
(reviews, how to’s …)
4. Payment model: CPL/CPS or tenancies
Examples
• http://www.autodiensten.be
• http://www.credit-conso.be

40. Different types
Emailing
What?
 Mailing databases
How?
1. Personalized, custom-made communication – direct reponse
2. Daily, weekly, occasional mailings
3. Highly effective for CPL-offers
4. Payment model: CPM/CPC/CPL/CPS or tenancies
Examples
• http://www.3suisses.be/
• http://www.caloga.com

41. Different types
Social
What?
 Social network link: Facebook, Twitter, Pinterest …
& social games (virtual currency)
How?
1. Promote offers using personal social network accounts / pages
2. Very effective on short term because of viral effect
3. High traffic volumes (redemption – social + reward)
4. Payment model: CPL/CPS
Examples
• http://www.facebook.com/actiecode
https://apps.facebook.com/farmville-two/
• https://twitter.com/bespaar

42. Different types
Display – Media buying
What?
 Networks or websites with huge traffic and ad inventories
& ad exchanges
How?
1. Regular display banner ads & sizes
2. Optimization based on data & postview tracking
3. Payment model: buying on CPM / CPC, selling on a CPA/CPL
Examples
• http://www.admeld.com
• http://www.gamned.com

43. Different types

44. No! Try not!
Do or do not, there is no try!

45. As an affiliate
Before act, think, young padouan!

46. As an affiliate
Do it or do it not...become a master how to.
Research Concept Launch

47. As an advertiser
When mastered the skills, Jedi master you are!
Sales channel Sales Force Resources
Acceptance Choose wisely

48. As an advertiser
Threats multiple in the Empire there are!
Double commissions Cookie fraud Branded search
Lead follow up Lazyness No banner focus

49. Go ahead, make my day.

50. Technology
Now you know why they call me Dirty Harry:
every dirty job that comes along…
Open API Technology
Super-Affiliates
Google

51. Trends
Mobile – Get out of the way, Hammerhead!
Mobile, retargeting & tracking

52. Trends
Mobile – Get out of the way, Hammerhead!
The mobile phone has
invaded our lives and
become omnipresent

53. Trends – by the numbers
Mobile – Get out of the way, Hammerhead!
71% 52%
research purchase
excluding
downloads
Tradedoubler Mobile Commerce Study May 2012 (UK, France, Germany & Sweden). UK data.

54. Trends – by the numbers
Mobile – Get out of the way, Hammerhead!
Over half of purchasers on smartphones do so at least once
a month

55. Trends – by the numbers
Mobile – Get out of the way, Hammerhead!
Mobile purchasing: not just for lower-priced goods

56. Say hello to my little friend!

57. Trends – by device
iPhone
55% 44% 55% 21%
MOBILE USE APPS RESEARCH PURCHASE
several times a day weekly or more often weekly or more often
INTERNET
several times a day
Tradedoubler Mobile Commerce Study May 2012 (UK, France, Germany & Sweden). UK data.

58. Trends – by device
Android
29% 24% 30% 11%
MOBILE USE APPS RESEARCH PURCHASE
several times a day weekly or more often weekly or more often
INTERNET
several times a day
Tradedoubler Mobile Commerce Study May 2012 (UK, France, Germany & Sweden). UK data.

59. Trends – by device
Blackberry
31% 14% 26% 8%
MOBILE USE APPS RESEARCH PURCHASE
several times a day weekly or more often weekly or more often
INTERNET
several times a day
Tradedoubler Mobile Commerce Study May 2012 (UK, France, Germany & Sweden). UK data.

60. Trends – by device
Tablets
50% 42% €257
research purchase highest amount spent
BIGGER TICKET ITEMS
HIGHER CONVERSION RATES
Tradedoubler Mobile Commerce Study May 2012 (UK, France, Germany & Sweden). UK data.

61. I guess you guys aren't ready
for that yet. But your kids
are going to love it..

62. Future trends happening now
RoPo / RofPo

63. Future trends happening now
RoPo / RofPo – Test Case
The Body Shop delivered in-app
offers which smartphone owners
researching on the move could
redeem in-store or via The Body
Shop’s mobile site
CONVERSION RATE OF
23%
46% INCREASE IN SALES

64. Future trends happening now
Retargeting
95%
Retargeting
of traffic & budget wasted

65. Greed, for lack of a better
word, is good

66. Future strategy
The most valuable commodity I know of is information.
Networks Follow up
Direct deals

67. Future strategy
Remember…
SEARCH DISPLAY
SOCIAL
EMAIL
CONTENT
MOBILE
RETARGETING, BLOGS,…

68. Kevin Van den Bosch
Affiliate Marketing Consultant
http://www.linkedin.com/in/kevinvdb

69. Reading list
Online
• http://www.affiliates4u.com (EU)
• http://www.amnavigator.com/blog (US)
• http://feedfront.com (US)
• http://www.shoemoney.com (US)
• http://zacjohnson.com (US)
• http://www.sugarrae.com (US)
• http://www.iabaffiliatemarketing.com (US)
• http://www.mediapost.com (US)
• http://themarketinglounge.org (US)
Books
- Affiliate Program Management: An Hour a Day
- Affiliate Manifesto - A Beginners Guide To Affiliate Marketing