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Affiliate Marketing

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This presentation is part of an ongoing course at McGill University on Electronic Market places and Social Media.

The session tackles affiliate marketing

Published in: Technology, Design
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Affiliate Marketing

  1. 1. What is affilia te marketing? Thursday, November 19, 2009
  2. 2. What is affilia te marketing? What if the restaurant gave you 10% of the bill of every friend you recommended it to? They’d be paying you a finder’s fee. Online, this is affiliate marketing. Thursday, November 19, 2009
  3. 3. Affiliates: an extended sales force Thursday, November 19, 2009
  4. 4. “A performance based online marketer, sending targeted traffic to a specific website” Thursday, November 19, 2009
  5. 5. Who’s who? Affiliate / Publisher Merchant / Advertiser • Sends targeted traffic • Wants targeted traffic • Publishes adverts • Has products to • Earns advertise commission • Pays commission on successful referrals Thursday, November 19, 2009
  6. 6. A brief history Thursday, November 19, 2009
  7. 7. Thursday, November 19, 2009
  8. 8. 2006: $6.5 billion paid! Source: MarketingSherpa Thursday, November 19, 2009
  9. 9. The 3process step Thursday, November 19, 2009
  10. 10. The 3 step process Thursday, November 19, 2009
  11. 11. Performance based relationships Action and Reward Thursday, November 19, 2009
  12. 12. CPA – Cost per Action CPL – Cost per Lead Thursday, November 19, 2009
  13. 13. CPC – cost per click Thursday, November 19, 2009
  14. 14. Revenue Share e.g. 1 – 10 sales: 10% commission 11 – 25 sales: 11% commission 26 – 50 sales: 12% commission 51 or more sales: 15 % commission Super Affiliate! Thursday, November 19, 2009
  15. 15. The Key : Tracking Thursday, November 19, 2009
  16. 16. What is a cookie and how does it help? Thursday, November 19, 2009
  17. 17. Tracking in URLs http://www.firebox.com/product/1201 http://scripts.affiliatefuture.com/AFClick.asp? affiliateID=238&merchantID=214&programmeID=3 897&mediaID=0&tracking=cube_world&url=http:// www.firebox.com/index.html? dir=firebox&action=product&pid=1201&usg=AFQjC NGdHpzAasCefzDnyUBPxnagxqzvTA Thursday, November 19, 2009
  18. 18. A note on cookie periods and commission 2. Fulfil transaction 1st Click 2nd Click 1. Click to advertiser from network, affiliate or search listing 3rd Click 3. Expose appropriate vendor based on ‘last vendor’ cookie Thursday, November 19, 2009
  19. 19. A note on cookie periods and commission 2. Fulfil transaction 1st Click 2nd Click 1. Click to advertiser from network, affiliate or search listing 3rd Click Search Affiliate wins 100% of payout 3. Expose appropriate vendor based on ‘last vendor’ cookie Thursday, November 19, 2009
  20. 20. Types of Affiliates Thursday, November 19, 2009
  21. 21. Thursday, November 19, 2009
  22. 22. Social networks Podcasts Meta-search Wikis Social Bookmarks Social shopping Blogs Personal portals Product reviews IM Micro-blogging Desktop Search User-generated content Thursday, November 19, 2009
  23. 23. Personal Blogs and Web Sites Thursday, November 19, 2009
  24. 24. Niche content Thursday, November 19, 2009
  25. 25. Coupons and Promo sites Thursday, November 19, 2009
  26. 26. Email newsletters Thursday, November 19, 2009
  27. 27. Loyalty sites Thursday, November 19, 2009
  28. 28. Comparison Thursday, November 19, 2009
  29. 29. Social Applications Thursday, November 19, 2009
  30. 30. Search affiliates Thursday, November 19, 2009
  31. 31. Affiliates and Search • Payment on CPA basis, not CPC • Search marketing spend passed on to affiliates • Greater keyword coverage Thursday, November 19, 2009
  32. 32. Affiliate Networks Thursday, November 19, 2009
  33. 33. “3rd party technical enablers, linking merchants, affiliates and their transactions” Thursday, November 19, 2009
  34. 34. Network benefits Thursday, November 19, 2009
  35. 35. Network benefits • Tracking solutions & reporting Thursday, November 19, 2009
  36. 36. Network benefits • Tracking solutions & reporting • Hosting creative Thursday, November 19, 2009
  37. 37. Network benefits • Tracking solutions & reporting • Hosting creative • Recruiting merchants and affiliates Thursday, November 19, 2009
  38. 38. Network benefits • Tracking solutions & reporting • Hosting creative • Recruiting merchants and affiliates • Quality control of affiliates and brand compatibility Thursday, November 19, 2009
  39. 39. Network benefits • Tracking solutions & reporting • Hosting creative • Recruiting merchants and affiliates • Quality control of affiliates and brand compatibility • One payment solution for merchants / commission handling Thursday, November 19, 2009
  40. 40. Network benefits • Tracking solutions & reporting • Hosting creative • Recruiting merchants and affiliates • Quality control of affiliates and brand compatibility • One payment solution for merchants / commission handling • Tracking the market e.g. search developments, new technology etc. Thursday, November 19, 2009
  41. 41. Some examples Thursday, November 19, 2009
  42. 42. Costs • sually no affiliate joining charge U • erchant set up costs – followed by M monthly fee (based on level of support) • et commission earned by affiliate S Thursday, November 19, 2009
  43. 43. Basic Tools of the trade Thursday, November 19, 2009
  44. 44. Merchants : Product Feeds & Creative Thursday, November 19, 2009
  45. 45. Affiliates : Entire spectrum of web tactics Thursday, November 19, 2009
  46. 46. Setting up an Affiliate campaign Thursday, November 19, 2009
  47. 47. Thursday, November 19, 2009
  48. 48. • Define the goal Thursday, November 19, 2009
  49. 49. • Define the goal • Own programme vs. affiliate network Thursday, November 19, 2009
  50. 50. • Define the goal • Own programme vs. affiliate network • Competitor analysis Thursday, November 19, 2009
  51. 51. • Define the goal • Own programme vs. affiliate network • Competitor analysis • Test tracking software for possible conflict with existing tracking Thursday, November 19, 2009
  52. 52. • Define the goal • Own programme vs. affiliate network • Competitor analysis • Test tracking software for possible conflict with existing tracking • Promote via forums or network Thursday, November 19, 2009
  53. 53. Tips in a performance market Thursday, November 19, 2009
  54. 54. Tips in a performance market 1. Pay affiliates as much as possible Thursday, November 19, 2009
  55. 55. Tips in a performance market 1. Pay affiliates as much as possible 2. Focus on conversion optimization Thursday, November 19, 2009
  56. 56. Tips in a performance market 1. Pay affiliates as much as possible 2. Focus on conversion optimization 3. Niche products can benefit Thursday, November 19, 2009
  57. 57. Tips in a performance market 1. Pay affiliates as much as possible 2. Focus on conversion optimization 3. Niche products can benefit 4. Go global (if possible) Thursday, November 19, 2009
  58. 58. + and - Thursday, November 19, 2009
  59. 59. Pros Thursday, November 19, 2009
  60. 60. Pros • Merchants only pay when goals are achieved. Thursday, November 19, 2009
  61. 61. Pros • Merchants only pay when goals are achieved. • Sales force and branding potential just got bigger Thursday, November 19, 2009
  62. 62. Pros • Merchants only pay when goals are achieved. • Sales force and branding potential just got bigger • Low barrier to entry for both affiliates and merchants. Thursday, November 19, 2009
  63. 63. Cons • Loss of brand control. • Affiliate programmes can be time consuming to manage, and often require dedicated staff. Thursday, November 19, 2009

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