Online Marketing Summit - Minneapolis - Affiliate marketing

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The 4 P’s of Affiliate Marketing. How to Build and Optimize an Affiliate / Pay-for-Performance Program. Prepared by Mike McAnally, Managing Partner at NordicClick Interactive @NordicClick @mmcanally. Feel free to contact me at 952-460-3330

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  • Active in the Interactive Marketing for over 14 yearsHave managed programs for Jostens, the NHL, WorldPerks Visa,
  • Rae Hoffman
  • Growth drivers: (i) better Affiliate site content, and (ii) an increasingly transparent dialogue between Affiliates and marketers. Social media is not expected to be one of the sources of considerable growth. At least not within the next 5 years. Search Paid and organic is expected to remain the key arena for Affiliate marketers to utilize. Top 3 Affiliate marketing spenders will be (i) financial service providers, (ii) retailers, and (iii) online education. Direct payments to Affiliates will represent the majority of the Affiliate marketing spending (57% by 2014), but Affiliate networks will also “remain highly relevant”.
  • Remarketer statistics
  • NetworkAccess to thousands of AffiliatesWeb-based softwareBuilt-in Promotional methodsNiche MarketsSoftwareLink BuildingCuts out the "Middle Man"Personal relationship with AffiliatesMulti-currency networksNicheAmazon, Books, ElectronicsMarketHealth – Health and BeautyDR – SoftwareJoe Bucks – HerbalFriend – Dating
  • Auto Approve via country & languagePerformance
  • Auto Approve via country & languagePerformance
  • Auto Approve via country & languagePerformance
  • Identify Super-Affiliates on the SE’s – Search for high ranking AffiliatesCreate a 2-tier commission structureOffer Bonuses & Special promotionsAttend Affiliate Conferences – A lot of big deals are negotiated at conferences over a couple beers ;)Competitive Research – Who is selling your competitors products
  • Identify Super-Affiliates on the SE’s – Search for high ranking AffiliatesCreate a 2-tier commission structureOffer Bonuses & Special promotionsAttend Affiliate Conferences – A lot of big deals are negotiated at conferences over a couple beers ;)Competitive Research – Who is selling your competitors products
  • URL/Ad Text Hijacking - Identify ads that use your ad text and display URL but instead route visitors through Affiliate links. These ads can be hard to visually spot because they look like your ads.Day parting - Identify ads that are run during specific hours. For example, some infringers run their ads at night so that company employees are unlikely to see the ads.Reverse GeoTargeting - Identify ads that use reverse IP-geotargeting. This technique prevents a specific city or region from seeing an advertisement. For example, if your headquarters were in San Francisco, they would run ads in every city but San FranciscoReferrer Laundering - Identify Affiliates that utilize improper redirects to hide the original source of their traffic.You have tremendous control over what ads you are alerted on. We support:Advertiser Whitelists - You can create whitelists of advertisers that you want to exclude from your alerts. You can utilize domains or in many cases the id of the Affiliate.Display Term Blacklists - Do you only want to be notified if we find an ad with a specific term or from a specific advertiser? If you create a Display Term Blacklist, we will only alert you if we find an ad containing that term (for example only alert you if an ad is found that contains the term 'official').
  • Missy Ward and Shawn CollinsPerformance track at AdTechAffiliate track at PubCon VegasOMI will start with classes and webinarsAffiliate tip Shawn CollinsRae Hoffman of Sugarrae
  • Online Marketing Summit - Minneapolis - Affiliate marketing

    1. 1. The 4 P’s of Affiliate Marketing<br />How to Build and Optimize an Affiliate / Pay-for-Performance Program<br />Mike McAnally <br />Managing Partner, NordicClick Interactive<br />@NordicClick @mmcanally<br />6/07/2011<br />
    2. 2. About me<br /><ul><li>Active in the Interactive Marketing community for over 14 years
    3. 3. Managing Partner at NordicClick Interactive
    4. 4. Affiliate portfolio includes managing programs for companies such as Jostens, NHL, US Bank Credit Cards, Allen Edmonds and Code42 Software.
    5. 5. An active Affiliate</li></li></ul><li>What we will cover in this Session<br /><ul><li>What is Affiliate/Pay-for-Performance Marketing and how does it work
    6. 6. Launching, Managing & Optimizing Affiliate Programs (The 4 P’s)
    7. 7. Plan, Prepare, Promote & Protect
    8. 8. Affiliate Marketing as a legitimate traffic medium that can drive incremental traffic and sales</li></li></ul><li>What we will NOT cover in this Session<br /><ul><li>An infomercial on how to make $1,000 a week
    9. 9. Monetizing your Blog
    10. 10. The 3 P’s– The acronym that Affiliate Marketing has a bad reputation for
    11. 11. Porn, Pills, Poker</li></li></ul><li>What is Affiliate Marketing?<br />Affiliate Marketing Affiliate marketing is a marketing practice in which a business rewards one or more affiliates for each visitor or customer brought about by the affiliate's own marketing efforts. <br />
    12. 12. From a Merchant standpoint?<br />Merchants favor Affiliate marketing because it uses a "pay for performance" model, meaning that the merchant does not incur a marketing expense unless results are accrued (excluding any initial setup cost).<br />
    13. 13. Affiliate Terminology<br />
    14. 14. How does it Work?<br />
    15. 15. Who uses Affiliate Marketing?<br />
    16. 16. Affiliate Marketing Statistics<br />Affiliate Marketing Spending is on pace to double by 2014<br /><ul><li>Growth drivers: Content and Dialogue
    17. 17. Social media will provide some growth
    18. 18. Paid and organic search will the remain top drivers
    19. 19. Top 3 Affiliate financial services, retailers, & online education</li></ul>Forrester Research, Inc. “US Affiliate Marketing Forecast, 2009 To 2014″<br />
    20. 20. Affiliate Marketing Statistics<br />Online Marketing Tactics Used<br /><ul><li>Affiliate marketing was used by 28% of all marketers
    21. 21. 46% felt the channel was very cost-effective
    22. 22. 48% felt it was quite cost-effective
    23. 23. Only 6% thought it was not cost-effective (lowest of all)</li></li></ul><li>Affiliate Marketing - Process<br />Affiliate Program Management & Optimization<br />
    24. 24. Affiliate Marketing - Plan<br />Cost & Commitment<br /><ul><li>Fees (setup, transaction and processing fees )
    25. 25. Monthly Minimums & Maintenance
    26. 26. Contract Commitments
    27. 27. Creative Development (banners, landing pages, etc.)</li></li></ul><li>Affiliate Marketing – Plan<br />Ongoing Resources<br /><ul><li>Management & Strategic Resources (Personnel, Support, Agency)
    28. 28. IT Resources
    29. 29. Creative Development
    30. 30. Accounting
    31. 31. Affiliate Application Review
    32. 32. Day-to-day Communication with Affiliate’s</li></li></ul><li>Affiliate Marketing - Plan<br />
    33. 33. Affiliate Marketing - Process<br />Affiliate Program Management & Optimization<br />
    34. 34. Affiliate Marketing - Prepare<br />Sell Yourself<br /><ul><li>Write your Bio
    35. 35. Identify your Target Market
    36. 36. Best selling products
    37. 37. Keywords
    38. 38. Conversion rate
    39. 39. Average order size
    40. 40. Promotional Plan</li></li></ul><li>Affiliate Marketing – Prepare<br />Base Creative Assets<br /><ul><li>Text & Copy Links
    41. 41. Keywords Lists
    42. 42. Images (Banners)
    43. 43. Promotions</li></li></ul><li>Affiliate Marketing – Prepare<br />Advanced Creative Assets<br /><ul><li>Product Feeds
    44. 44. Flash Links
    45. 45. Advanced Links, Search Boxes, Widgets, etc.</li></li></ul><li>Affiliate Marketing - Prepare<br />Affiliate Mgmt.<br /><ul><li>Commission Structure
    46. 46. Base Commission
    47. 47. Multi-tier
    48. 48. Bonuses and goals
    49. 49. Approval Method
    50. 50. Auto-Approve and Decline
    51. 51. Manual Review
    52. 52. Communication
    53. 53. E-mails, Social</li></li></ul><li>Affiliate Marketing - Prepare<br />Technical Integration<br /><ul><li>IT Resources
    54. 54. Code Implementation
    55. 55. Javascript code
    56. 56. Tracking Pixel
    57. 57. Confirmation
    58. 58. Test order before launch</li></li></ul><li>Affiliate Marketing - Process<br />Affiliate Program Management & Optimization<br />
    59. 59. Affiliate Marketing - Promote<br />Promote On-Site<br /><ul><li>Create an Affiliate specific area (.com/Affiliate)
    60. 60. Recruit partners & customers in your network
    61. 61. Write a press release / blog article
    62. 62. Post testimonials to the success of your program</li></li></ul><li>Affiliate Marketing - Promote<br />Promote Off-site<br /><ul><li>List your program in Affiliate program directories
    63. 63. Find niche forums and talk about your program
    64. 64. Utilize Social Media networks, Twitter & e-mail to reach out to your brand evangelists</li></li></ul><li>Affiliate Marketing - Promote<br />If you Build it…<br />Recruit Affiliates<br /><ul><li>Identify Super-Affiliates on the SE’s
    65. 65. Create a multi-tier Commission Structure
    66. 66. Offer Bonuses & Special promotions
    67. 67. Attend Affiliate Conferences
    68. 68. Pay a “Lead Bounty”</li></ul>My Site<br />they will come?<br />
    69. 69. Affiliate Marketing - Promote<br />Share your Promotion & Sales Calendar<br /><ul><li>COMMUNICATE with your Affiliates
    70. 70. Ensure that they are aware of your sales & discounts
    71. 71. Offer special incentives at peak sales windows</li></li></ul><li>Affiliate Marketing - Process<br />Affiliate Program Management & Optimization<br />
    72. 72. Affiliate Marketing - Protect<br />Affiliate Approval<br /><ul><li>Automated
    73. 73. Anyone can sell
    74. 74. Manual
    75. 75. Review Sites Carefully
    76. 76. More Control of Brand Placement
    77. 77. Manual Affiliate Approval</li></li></ul><li>Affiliate Marketing - Protect<br />Monitor your Brand<br /><ul><li>Common Affiliate Tricks
    78. 78. URL/Ad Text Hijacking
    79. 79. Day-parting
    80. 80. Reverse Geo-Targeting
    81. 81. Utilize monitoring tools to Create Affiliate watch list
    82. 82. Social Media
    83. 83. Paid Search </li></li></ul><li>Affiliate Marketing - Protect<br />Reporting & Analytics<br /><ul><li>Fraudulent and Cancelled orders
    84. 84. Analytics Reports
    85. 85. Sales, Visits, AOV, Conversion rate, etc.
    86. 86. Referral Traffic & Sales
    87. 87. Trends / History
    88. 88. Category Performance
    89. 89. Publisher Performance</li></li></ul><li>Affiliate Marketing – Case Study<br />Launch with Google Affiliate Network <br />Promotional Strategy<br />2<br />3<br />Leverage new publishers opportunities<br />1<br />Case Study Background<br /><ul><li>Background: Specialty retailer turned to NordicClick to identify new sales channels
    90. 90. Objectives: Accelerate online sales growth and attract affiliate publisher partners</li></li></ul><li>Affiliate Marketing – Case Study<br />Case Study Results<br /><ul><li>10% of overall online sales driven through Google Affiliate Network (in initial 4 months)
    91. 91. Majority of growth evaluated as incremental
    92. 92. Conversion rate twice as high as other channels
    93. 93. Google Affiliate Network projected to drive 15-20% of overall sales volume in 2011
    94. 94. C-Level confidence</li></li></ul><li>Affiliate Marketing - Tools<br />Conventions to Attend<br /><ul><li>OMI, Affiliate Summit, AffCon, PubCon, Adtech</li></ul>Blogs & Forums<br /><ul><li>Affiliate Tip, ClickBank Blog, ShareASale, ABestWeb, Sugarrae, Affiliates4U</li></li></ul><li>Affiliate Marketing - Summary <br />Summary<br /><ul><li>Understand the cost and commitment to resources.
    95. 95. Affiliate Marketing needs attention.
    96. 96. Be aggressive, spend money to make money.
    97. 97. Protect your brand via monitoring and analytics.
    98. 98. Affiliate Marketing can be a low-cost incremental source of revenue via a “Virtual Sales Force.</li></li></ul><li>Thank You<br />Mike McAnally<br />Managing Partner, NordicClick Interactive<br />Mike@NordicClick.com<br />952.460.3330<br />@NordicClick @mmcanally<br />www.linkedin.com/in/MikeMcAnally<br />www.facebook.com/NordicClick<br />The 4 P’s of Affiliate Marketing<br />

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