Affiliates Summit 2

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  • Affiliates Summit 2

    1. 1. Introduction to Affiliate Marketing for Merchants Forrest Schaaf, Partner, Schaaf Consulting (Moderator) Dan Chiss, Director, Affiliate Strategy, Performics Peter Figueredo, CEO and Co-Founder, NETexponent Rob Key, CEO, Converseon John Tomaszewski, VP Policy and Legal, TRUSTe
    2. 2. Affiliate Segmentation The devil is in the details Dan Chiss Director, Affiliate Strategy & Publisher Development Performics
    3. 3. It’s Marketing! <ul><li>Affiliate marketing requires execution of traditional marketing techniques </li></ul><ul><li>Success is not always about discovering new techniques </li></ul><ul><li>Advanced affiliate marketing lies in strong execution </li></ul><ul><li>Success relies on the details </li></ul>
    4. 4. Why Segmentation Matters <ul><li>Affiliates tend to be a heterogeneous group, with different business models, audiences, motivations, and behaviors </li></ul><ul><li>Affiliates are time-strapped and inundated with communications, offers, and incentives </li></ul><ul><li>Segmentation can lead to greater efficiency, productivity, and profitability </li></ul>
    5. 5. Standard Affiliate Segmentation Schema <ul><li>By performance (high, medium, low) </li></ul><ul><li>By classification/business model </li></ul><ul><ul><li>Loyalty/Rewards </li></ul></ul><ul><ul><li>Shopping/Promotions, </li></ul></ul><ul><ul><li>Community and Content </li></ul></ul><ul><ul><li>Search Specialists </li></ul></ul><ul><li>By content category (e.g., Technology, Sports & Outdoors, Fashion) </li></ul><ul><li>By site demographics </li></ul>
    6. 6. Advanced Segmentation Ideas <ul><li>By age (how many days since an affiliate joined your program) </li></ul><ul><li>By recency (how long since an affiliate last generated a lead or sale) </li></ul><ul><li>By customer quality/profitability (% of new-to-file, high LTV, etc.) </li></ul><ul><li>By products purchased (on a sku level) </li></ul>
    7. 7. Affiliate Segmentation Rules of Thumb <ul><li>Make sure your segments are distinct, actionable, and measurable </li></ul><ul><li>Segments need to be large enough to matter </li></ul><ul><li>Start simple – add complexity over time </li></ul>
    8. 8. I’ve Created Segments, Now What? <ul><li>Create and test different versions of email newsletters against each segment </li></ul><ul><ul><li>Content and personalization can have a significant impact on response rates </li></ul></ul><ul><li>Utilize pricing and incentives to motivate and reward best behavior </li></ul><ul><li>Test, measure, refine, test again </li></ul>
    9. 9. Outsourcing Peter Figueredo CEO & Co-Founder NETexponent
    10. 10. Benefits Of Outsourcing Outsourcers can provide affiliate managers with much needed bandwidth and expertise in affiliate recruiting and optimization Sometimes Always Exclusive Hybrid Fixed Costs Easy Difficult Severable None Full Overhead Amassed Limited Negotiation Diverse Limited Cross Client Major Minor Skin-in-Game Medium Limited Relations Diverse Limited Experience Yes No Staff Oversight Diverse Limited Data Outsource In-House
    11. 11. Affiliate Outsourcing RFP Questions <ul><li>How long have you been managing relevant programs and relevant tech platforms? </li></ul><ul><li>What client service background do you have? </li></ul><ul><li>What is the average length of your client engagements? </li></ul><ul><li>What programs do you currently manage? </li></ul><ul><li>What is your current client to staff ratio? </li></ul><ul><li>How many staff hours can you guarantee? </li></ul><ul><li>How do you minimize fraud? </li></ul><ul><li>What relevant partnerships do you have? </li></ul><ul><li>How will you protect my brand? </li></ul><ul><li>Do you offer category exclusivity? </li></ul><ul><li>Please provide bios of my team. </li></ul><ul><li>Please provide relevant client references. </li></ul>Contact ( [email_address] ) For All 40 Questions
    12. 12. Affiliate Management Outsourcers <ul><li>Converseon </li></ul><ul><li>Commerce 360 </li></ul><ul><li>Forge Business </li></ul><ul><li>iMarketing </li></ul><ul><li>NETexponent </li></ul><ul><li>Partnercentric </li></ul><ul><li>Schaaf Consulting </li></ul><ul><li>Shawn Collins Consulting </li></ul>
    13. 13. Integrating Search and Affiliate Strategies Rob Key, CEO, Converseon [email_address]
    14. 14. Truisms… <ul><li>According to Shop.org studies, search and affiliate marketing are the two most efficient online acquisition channels (after in-house lists) </li></ul><ul><li>Synchronizing search and affiliate provides helps ensure greater efficiencies. </li></ul><ul><ul><li>Bid strategies </li></ul></ul><ul><ul><li>Meta-search </li></ul></ul><ul><ul><li>Natural optimization </li></ul></ul><ul><ul><li>“ Long tail” keywords </li></ul></ul><ul><ul><li>Brand protection </li></ul></ul>
    15. 15. Three Eras of Search/Affiliate Strategies <ul><li>Era 1 “The Wild West” </li></ul><ul><ul><li>Many companies basically outsourced much search to affiliates to pay on performance basis. Affiliates Arbitraged. </li></ul></ul><ul><li>Era 2 “The Taliban Era” </li></ul><ul><ul><li>Companies take hold of search strategies and begin precluding affiliates from bidding on relevant keywords (esp. branded) </li></ul></ul>
    16. 16. Era 3: Our Emerging Era <ul><li>Era of “Shelf Space” </li></ul><ul><ul><li>Search and affiliate more strategically utilized to maximize real estate on SERPs. </li></ul></ul><ul><ul><ul><li>More strategic policies to set bid limits on critical keywords (not bidding against brand) </li></ul></ul></ul><ul><ul><ul><li>Handpicked, controlled, trusted affiliates brought into more integrated efforts (natural and PPC) </li></ul></ul></ul><ul><ul><ul><li>Utilization of select content-oriented affiliates (including bloggers) for “long tail” keywords </li></ul></ul></ul><ul><ul><ul><li>Fills void that could be filled by competition </li></ul></ul></ul><ul><ul><ul><li>Utilize “direct link” technologies to boost linking, where possible (is your affiliate link direct or redirected?) </li></ul></ul></ul><ul><ul><li>Focus on “Shelf Space” Maximization </li></ul></ul>
    17. 17. Competitive Advantage Requires “Shelf Space” Approach <ul><li>One top listing only captures a percentage of potential traffic for a given keyword. </li></ul><ul><li>According to Jupiter research, 75% of search engine users never scroll beyond the first page of results. </li></ul><ul><li>A key approach for some leading brands for highly converting/valuable keywords is occupy as much of the top listings – the valuable “shelf space” – as possible by enabling affiliates to compliment brand property strategies </li></ul>
    18. 18. Search Engine Marketing – Shelf Space Defined Paid Search Natural Results Affiliate Listing
    19. 19. Elements <ul><li>Take control of your Search Engine Result Pages (SERP). </li></ul><ul><ul><li>Allowing a few trusted affiliates to bid along with you limits the amount of control you cede to Google, other search engines and competitors to correctly represent your brand to consumers. </li></ul></ul><ul><li>Force unwanted or confusing natural results (celebrity gossip and competitors) below the fold. </li></ul>
    20. 20. Elements <ul><li>Major Search Engines allow only one paid ad per domain/per keyword </li></ul><ul><li>Using a few trusted affiliates can: </li></ul><ul><ul><li>Increase your exposure on SERP’s by adding more ads for merchant on each search term. </li></ul></ul><ul><ul><li>Push your competitors out and limit their exposure to Your customers. </li></ul></ul><ul><ul><li>Limit customer confusion by allowing affiliates to add correct information on your SERP’s </li></ul></ul>
    21. 21. Formulating a Strategy <ul><li>What bid limit for brand keywords? </li></ul><ul><li>How to tackle long tail keywords? </li></ul><ul><li>Where (what keywords) to focus efforts maximize shelf space? (most valuable traffic)? </li></ul><ul><li>Fully leverage policies across affiliates </li></ul><ul><li>Consider a blog strategy to optimize for long tail keywords as well </li></ul>
    22. 22. SERP Visibility Map Take credit cards Stores online Buy online Credit cards Merchant account Keyword Phrases Other Intended audience http://www.zend.com/zend/tut/tutorial-Company.php 10 Neutral What Is Company? http://www.htmlgoodies.com/beyond/Company.html 9 Other freshmeat.net: Project details for Company Shopping Cart http://freshmeat.net/releases/166124/ 8 Negative Company - the &quot;Pal&quot; You Pay http://www.ygoodman.com/Company.html 7 Friendly Company Developer Network Blog http://Company.typepad.com/ 6 Hack.com: Company: Stay Safe When Buying Online http://www.hack.com//Company/buyer/protection.html 5 Negative Tongkat Ali, unrestricted sex – Company, restricted account http://www.aboutCompany.org/ 4 Negative CompanyWarning.com - Company Warning to Investors, Merchants ... http://www.Companywarning.com/ 3 Negative CompanySucks.com is where you will learn the abuse, fraud, & evil ... http://www.Companysucks.com/ 2 Company Company - Welcome http://www.Company.com/ 1 Status Site title “ Company” – Top Ten Listings
    23. 23. Thank You [email_address] (646) 567-8228
    24. 24. Affiliate Marketing, Adware & Spyware What you don’t know can hurt your brand. John P. Tomaszewski, Esq. VP, Legal, Policy & Compliance, TRUSTe February 4, 2005
    25. 25. What You Don’t Know Can Hurt Your Brand <ul><li>Adware/Spyware/Malware reaching Epidemic Proportions </li></ul><ul><ul><li>Adware/Spyware affecting 80% of home computer users* </li></ul></ul><ul><li>80% of those with affected computers didn’t know these programs were installed </li></ul><ul><li>Consumers losing trust in software delivered over the internet </li></ul><ul><li>* Per AOL/NCSA Online Safety Study, October 2004 </li></ul>
    26. 26. Pushing the Envelope <ul><li>Adware is an effective way to generate leads and to make content and services possible for free </li></ul><ul><li>Using surreptitious means instead of offering a clear, responsible value proposition has resulted in growing consumer backlash </li></ul><ul><li>No independently verifiable standards existed </li></ul><ul><li>No clear business incentive to “step-up” to best practices </li></ul>
    27. 27. Trusted DownloadProgram <ul><li>Trusted Download Program is a whitelist which our partners Yahoo!, CNET, AOL and ( You Can ), use to direct internet advertising dollars and distribution opportunities to software that demonstrates informed consent and gives control back to the user. </li></ul><ul><li>www.trusteddownload.com </li></ul>
    28. 28. Market Incentives for Certified Applications Uncertified Application Trusted Download Program Advertisers and Ad Networks Content Aggregators and Consumer Portals Certified Application Incentives = Money Anti-Spyware Software You Are Here = Install = Ratings
    29. 29. Objectives <ul><li>Promote meaningful notice and control for consumers </li></ul><ul><li>Establish industry-wide standards for software developers </li></ul><ul><li>Identify trustworthy applications via whitelist for distributors and marketers </li></ul><ul><li>Help advertisers protect their brands through spyware-free advertising </li></ul>
    30. 30. Protect Your Brand By Doing… <ul><li>Clear Value Prop to Consumer </li></ul><ul><ul><li>What is the deal? </li></ul></ul><ul><li>Consent to download/install </li></ul><ul><li>Ads are labeled as to the advertiser </li></ul><ul><li>Software serving the ads are also labeled </li></ul><ul><ul><li>Who is the advertiser and what is the software doing the advertising </li></ul></ul>
    31. 31. Examples of Prohibited Activities <ul><li>Taking control of a consumer’s computer </li></ul><ul><li>Modifying security settings </li></ul><ul><li>Collecting personally identifiable information (PII) through the use of keystroke logging </li></ul><ul><li>Inducing the user to provide PII to another person through intentional misrepresentation </li></ul><ul><li>Inducing the user to install software onto computer or preventing efforts to block installation </li></ul>
    32. 32. Contact TRUSTe <ul><li>John P. Tomaszewski, Esq. </li></ul><ul><li>VP, Legal, Policy & Compliance </li></ul><ul><li>[email_address] </li></ul><ul><li>415-520-3423 </li></ul><ul><li>www.trusteddownload.com </li></ul>

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