Affiliate marketing - Details on engaging PPC search specialists
1. Role of Search Specialists in
Affiliate Marketing
Olaf Jonsek
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GlobalWare Solutions Corporate
2. Search Specialists
Conventional publishers in affiliate marketing campaigns use their web
pages to promote affiliates and generate a commission
Search Specialists use paid search engine placements to generate the clicks
to the affiliate program
Paid clicks are generated using Google Adwords, Yahoo Search Engine Marketing
or Bing (Microsoft Search Engine Marketing)
Paid ads serve web users with a more commercial intent, so conversion rates are
higher
Search Specialists have the technology to target relevant keywords, but also use
the ‘long tail’ to find keywords that convert well but don’t cost much
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4. Paid listings by Search Specialists in GAN
<0.5 seconds
gan.google.com/pubID=123
Publisher gets credit for visitor
Visitor is forwarded to [Store]
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5. Keyword strategy for Search Specialists
Maximizing clicks for qualified web users (shoppers) while minimizing cost
leads search specialists to testing several keywords
Product titles
Product names from user-perspective
Exercise types:
Mis-spelled words
Competitor’s keywords
Long tail keywords
or any combination of examples above
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‘FT7’
‘sports watch’
‘Running, Fitness’
‘Poalr FT7’
‘Omron HR-100C Heart Rate Monitor’
‘Running New York’
6. Business Model for Search Specialists
Accessories
10% conversion rate
$30 average order value
6% commission on $30 order value: $1.80 commission
Based on the conversion rate of 10%, to generate 1 order, the search specialist
has to send 10 visitors to [Store], to get $1.80
Maximum spend per keyword (PpC): $0.18
If the average PpC is $0.10:
100 clicks =
$10 PpC Cost
100 clicks = 10 orders =
$18 in earnings (commissions)
Bottom line: $8 profit on $10 spent
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7. Business Model for Search Specialists
Training computers
5% conversion rate
$120 average order value
6% commission on $120 order value: $7.20 commission
Based on the conversion rate of 5%, to generate 1 order, the search specialist
has to send 20 visitors to [Store], to get $7.20
Maximum spend per keyword (PpC): $0.36
If the average PpC is $0.20:
100 clicks =
$20 PpC Cost
100 clicks = 5 orders =
$36 in earnings (commissions)
Bottom line: $16 profit on $20 spent
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8. Advantages for [Brand]
No additional costs but increased visibility for [Store] in another sales
channel
Search specialists have tools and experience to optimize their PpC-cap
GAN allows testing search specialists for effectiveness
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9. Possible risks
Increased competition for existing retailers - Another bidder for keywords
on search engines
However, each bidder has a cap on maximum spending, so they don’t necessarily spend
more, but generate potentially less transactions through PpC
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