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Future-proofing the affiliate industry
- 1. 1 | Future-proofing the affiliate industry Future- proofing the affiliate industry
- 2. 2 | Future-proofing the affiliate industry The global opportunity €12bn Estimate d global value of affiliate marketing €149m Netherland s €226m France €1.3b n German y €1.7bn UK €4bn ROW €4.5bn USA
- 3. 3 | Future-proofing the affiliate industry Murky at best and fraudulent at worstMarc Pritchard, P&G, January 2017
- 4. 4 | Future-proofing the affiliate industry
- 5. 6 | Future-proofing the affiliate industry Quantitative Qualitative Multiple measurement Single measurement Fixed dashboards Flexible dashboards Literal interpretation Lateral interpretation Three- dimensional Two- dimensional
- 6. 7 | Future-proofing the affiliate industry Next generation affiliate marketing Measure more
- 7. 8 | Future-proofing the affiliate industry Incorporating CRM data Previous Purchase Date Delivery Town Loyalty / Membership Number New / Existing Customers Lifetime Value Product Category Determining which publishers drive the most valuable customers Understanding customer lifecycles and behaviour Benchmarking against your competitors with more in-depth metrics Introduce geo specific strategies targeted at publishers with a higher percentage of sales abroad Spend more efficiently with publishers during peak periods Product Size Product Margin
- 8. 9 | Future-proofing the affiliate industry
- 9. 11 | Future-proofing the affiliate industry How do we make sense of the data?
- 10. 12 | Future-proofing the affiliate industry How do we make sense of the data? 30% 0.83 £153 0.93 £12.02 1.35 74/26 0.96 50% 1.39 £174 1.06 £11.07 1.46 92/8 0.77 52% 1.44 £147 0.9 £7.88 2.1 68/32 1.04 Biggest affiliate Highest AOV affiliate Discount code Programme benchmark 36% 1 £164 1 £16.21 1 71/29 1 New customer % New customer score New customer AOV New customer AOV score New customer CPA New customer CPA score New customer gender split New customer gender score 4.1 3.7 5.5 4 Total score 52% 1.44 £147 0.9 £7.88 2.1 68/32 1.04 Discount code 5.5
- 11. 13 | Future-proofing the affiliate industry Connecting post-transaction data £767k additional revenue 0 5 10 15 20 25 0 50 100 150 200 250 300 350 400 2 purchases 3 purchases 4 purchases 5 purchases Desktop Apps £511 average spend from each customer 3.3 additional sales on average 5.1 additional sales on average through apps. £100k of that tracked back through the affiliate channel, One retailer tracked 1,500 customers initially referred through the affiliate channel over the next 12 months…
- 12. 14 | Future-proofing the affiliate industry Broadband Cashback Voucher True Content 6 Month Churn 6 Month Churn Affiliate Channel 6 Month Churn All RTMs Delivering lifetime value through affiliates “The channel can clearly demonstrate customer quality, lifetime value, sales attribution and investment opportunities. “Bundled together, this has increased sales, decreased churn and made the affiliate channel a major success internally”
- 13. 15 | Future-proofing the affiliate industry Tapping into current trends Top partners Influencer programme95.62% 68.67%
- 14. 16 | Future-proofing the affiliate industry Conversion timeframes for single and multi-device sales 14% 21% 66%67% 11% 22% Within 24 hours Within a week More than a week Cross Device Sales Single Device Sales
- 15. 17 | Future-proofing the affiliate industry The importance of global retail events 8% 12% 14% 40% 42% 42% 51% 56% 82% 93% 145% 162% 177% 194% 210% Denmark Spain Germany Brazil Sweden France GLOBAL AVG UK Finland Italy Norway USA Netherlands Poland Belgium Black Friday 2016, YoY revenue growth
- 16. 18 | Future-proofing the affiliate industry Tapping into trends 0 2 4 6 8 10 12 14 16 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Thousands Smartphone 2015 Smartphone 2016 >100% YoY Growth
- 17. 19 | Future-proofing the affiliate industry Next generation affiliate marketing Macro trends Track more Analyse at point of sale Monitor campaign Long term picture Business intel Next generation tracking Test, learn and optimise
- 18. 20 | Future-proofing the affiliate industry The Awin Report 2017 www.awin.co m/awinreport
Editor's Notes
- zoom
- Display ad impression "viewable" if at least 50% of pixels are on-screen for at least one second Video is viewable if at least 50% of the player is on-screen for at least two seconds.
- With more data points being shared we can focus on incentivising most valuable behaviours Advertiser objectives differ from brand to brand By sharing data, brands are better position to drive more value from affiliate sales Publisher X drives more sales from China Publisher Y sells more maternity wear Publisher Z has customers who stay loyal What could this look like from a reporting perspective?
- Let’s chat about this slide on Friday morning to see how you want to present this data. I’ll explain what I’m trying to achieve with it.
- This slide is supposed to show how a campaign’s data could be contextualised with a specific scoring. I’ll talk you through it.
- the rest to other paid channels and direct to site
- As an indication of just how big Black Friday has become for Awin you’ll see here the growth in revenue that each of our markets saw in 2016 versus the previous year. On average that growth was around 51% for the entire network but there were markets that far exceeded that as the event took hold properly for the first time. For some markets such as the Netherlands and France, 2016 was the year that Black Friday genuinely became a fully-fledged online event, with previous years seeing fairly negligible growth. The US saw what might be considered to be a significant amount of growth considering it is the home of Black Friday and the event is well established there. Yet it’s worth remembering that the event was initially an in-store one and it is only in recent years that retailers there have responded to Amazon’s online successes and have started to ramp up their ecommerce efforts. With Black Friday 2017 just around the corner it remains to be seen whether all of these markets will continue to grow or if they have already reached peak performance.
- Track more: incorporate CRM data into your program Analyse at point of sale and benchmark your individual affiliates against your own standards Monitor campaign performance to observe variances and outliers Consider the long term picture: monitor post-transaction data Investigate business intel tools: speak to your network! Consider next generation tracking: consumers are not tied to single devices Give thought to macro trends and wider digital developments Test, learn and optimise!