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Affiliate Marketing

This presentation starts with the introduction to E-commerce market, its scope and present scenario. Several researches from forrester research, Comscore, IAB surveys, Hubspot had been hepful in collecting the data.

It then, explains about Social Commerce and its evolution and value in Indian Market.

Affiliates, Affiliate programs , affiliate marketing and Affiliate networks with some affiliate giants have been presented.

The presentation has 2 case studies: and the cash back affiliate in UK

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Affiliate Marketing

  1. 1. Assignment 1Presentation by Puneet Sharma
  2. 2. Content• E Commerce• E-Commerce in 2009• Events in E-commerce history• Social Commerce• Future of Social Commerce• Affiliate and Affiliate Networks•• Quidco: a case study with user and merchant’s perspective
  3. 3. E- Commerce• An industry where buying and selling of product or service isconducted over electronic systems such as the Internet and othercomputer networks.(wiki says so.)• Activities done on Mobile phones, tablets, internet, smart TV,even fax comes under e-commerce.
  4. 4. Why Learn about E-Commerce? E-Commerce Sites:Create Consumer / Business Demand Invest in Conversion & Acquisition StrategiesUnderstand Shoppers Needs Promote Best Selling Items FollowTrends & Economic Conditions RewardYou on Conversion!
  5. 5. What do Merchants Want? Customer Acquisition Conversions Pay for Performance Model Reduction of Costs Margin Preservation Behavioral Analysis Ability to Market DirectlyImage credit –
  6. 6. What do Affiliates Want?Image credit - Affiliate Income High Conversions Low RiskVisitor Information Ability to Remarket
  7. 7. The E-Commerce FlowBUSINESSEcommerceMerchantAffiliate AffiliateSearchEnginesSocialMediaMobileOtherCONSUMER
  8. 8. E- Commerce in 2009
  9. 9. Market Conditions 2009Top 500 Merchants Revenue $115.8B (+11.7%)Top 100 Merchants Revenue $98.6B (55% of total) Revenue $19.17B (+29.5%) Economic Forces Luxury is Out & Necessity is In (changing)Winners are investing inTechnology Social Media & Mobile is changing landscapeSource: Internet Retailer 2009 Edition
  10. 10. Source: Internet Retailer 2009 Edition
  11. 11. Top E-CommerceTrends Personalization Mobile E-Commerce Segmentation Behavioral Profiles Sharing - Social Media (Facebook,Twitter) Building Loyalty Search Product Reviews Product Guides Video
  12. 12. 1995:JeffBezos launches and the firstcommercial-free 24 hour. eBay is founded by computerprogrammer Pierre Omidyar as AuctionWeb1996: IndiaMart B2Bmarketplace establishedin India.1996: Ecplaza: Launched in Korea;1999: Alibaba Groups launched in China;Napster Launched; launched.2002: Ebay acquire paypal fro $1.5 billion;Wayfair and Netshop: founded with the concept ofselling products through several targeted domains,rather than a central portal.
  13. 13. According to Forrester Research, e-commerce sales are expected to grow at an average of9 per cent a year through 2017, to $370 billionIn the ‘retailers and general merchandise’ industry, Amazon stands apart in the same yearas Google’s biggest spender.Amazon - Spent $55.2 million on GoogleAdWordsEbay - Spent $42.8 million on GoogleAdWordsMacys - Spent $35.6 million on GoogleAdWordsSears - Spent $34.3 million on GoogleAdWordsJC Penny - Spent $30.9 million onGoogleAdWordsGoogle Shopping Express is the experiment done by google in e-commerce
  14. 14. Social Commerce:Social Integration
  15. 15. • Social Commerce is meant to be the use of social media for commerciallyactivities or inclusion of social networking to your e-commerce portal.Should we open the gates?What will happento our safe,controlled site if weopen the gates toSocial Media?
  16. 16. TheThree Dimensionsof Social Commerce• Social Shopping: Group shopping sites (like Groupon),recommendation enginesand online marketplaces all bring customers together in a central location andallow for an interactive, social experience.• Customer Reviews: By harnessing the wisdom of crowds, positive reviews can begame changers in a customer’s decision to choose your brand.• Peer-to-Peer Referrals: This has proven to be the most effective way of drivingnew sales, as potential customers trust close friends more than an anonymousreview on your site.
  17. 17. Web InfrastructureMarketing Sales ServiceSocialMarketingSocialCommerceServiceCommunitiesSocialMarketingMngmtSocialCRMSocialWCMSCommunityMngmt
  18. 18. Future of Social Commerce
  19. 19. AccordingtoForresterResearch
  20. 20. Affiliate
  21. 21. What is an affiliate?• Has anyone heard of:Affiliates are:“Companies, groups and individuals who promote merchantsthrough one, or many of the various forms of affiliatemarketing”
  22. 22. AffiliateTypes13%6%3%8%4%31%7%28%% ProportionSearchE mail MarketingMedia BrokerPortal ISPPrice ComparisonReward/LoyalitiesShopping DirectoriesContent6,500 active affiliates with circa 1,000 active affiliates each monthSource; Tradedoubler
  23. 23. Acquiring our shareA recent IAB study of 140 advertisers showed:• 77% of respondents said that marketing spend for affiliates hadgrown and 71% expected it to grow again in the coming year.• 19% of respondents are paying out over £100k month in affiliatecommissions• Over ¼ of respondents spend more than 20% of online marketingbudgets on the affiliate channelIAB Survey December 2011
  24. 24. Where does affiliate fit into my online strategy?AffiliateMarketingAffiliateSoftwareAffiliateNetworkPublisherPublisherPublisherConsumerSearchEngineMarketingDisplayE mailMarketingMobileMarketingSocial mediaAffiliateMarketing
  25. 25. A typical customer journey?Consumer Affiliate Network Merchant11 1 126345TrafficPaymentsPayments are made byTradedoubler to each affiliate, this data is available to themthrough our interface, affiliates can access using their unique login details.6Courtesy: tradedoubler
  26. 26. Implications for merchants•The benefit for the merchant is simple;–They only pay out on results–Guaranteed ROI– Zero risk strategy
  27. 27. Implications for affiliates• Affiliate’s need to become experts in driving relevant traffic to merchantswebsites in order to maximise return for themselves.•The affiliate spends their own time and money driving traffic to the merchantand only gets paid if they deliver results.
  28. 28. Implications for networks• Must work with a large number of affiliates• Only make money if they can drive sales for the merchants• Networks must have accurate reporting and tracking
  29. 29. The Affiliate Network
  30. 30. What is an affiliate network?“affiliate networks provide their clients(merchants) with agateway to large numbers of individual affiliates and enable allparties to track results through the use of their technology”
  31. 31. BiggestVerticals• Financial Service• Travel• Broadband• Telecom• Retail• Gaming• Recruitment
  32. 32. Types of Affiliate ProgramsCPACPLCPC
  33. 33. MetricsPerformance based: only pay for conversions, clicks, leads,salesTracking required: usually done through an affiliate networkCost per Acquisition, cost per click, cost per lead, cost perdownload, cost per view, cost per Facebook like
  34. 34. Social affiliateCost per click- Social Ads on Facebook. These ads can bemicro-targeted, there is no “Like” feature here.Cost per Like- Social ads and sponsored stories that aremicro-targeted. The likes are published as socialinteractions into the newsfeeds of users. A user canadditionally like a Facebook page after click through.Cost per connect- using Facebook Connect button, givesaccess to certain user information. The user double opts-in to allow access to the information requested by theadvertiser, whether it’s basic user info or more detailedlike e-mail address and access to their calendar.Cost per download/lead/action- offers are distributedingame to drive CPL, CPA, and CPI in exchange forFacebook Credits.
  35. 35. Top 5 Affiliate Network 2013:• Google Affiliate Network• Amazon Associates• Clickbank• Commission Junction• LinkShare
  36. 36. Google Affiliate Network• Google Affiliate Network is one of the top affiliate network 2013.• Google Affiliate Network Allow you to promote Up to 800 Merchants from all over the word.• Have thousand of publisher from all over the world.• As a Google Affiliate or Publisher will earn commission when people click their ads or make apurchase.• Fully automated system.• Google affiliate NetworkGoogle Affiliate Network Details:Number Of Offers: 800++Type: CPA,CPL,CPSPayment Method: CheckPayment Period: Monthly
  37. 37. Amazon Associates• Amazon Associates is a affiliate network which one attract affiliate who want to make money bypromoting Amazon Product Using their own website.• Have Unlimited number of products to promote.• Amazon Make affiliate marketing easy.You can earn lots of money through Amazon Associate.Amazon Associates Details:• Number Of Offers: Unlimited• Type: CPS• Payment Method: ACH (Direct Deposit), Check• Payment Period: 60 Day
  38. 38. ClickBank• Clickbank is a Largest online Digital Marketplace.• One can Promote up to 10,000++ digital product such as: E-book, Software, Services from clickbank.• One can earn up to 75% commission per transaction.• Clickbank Is Most Popular affiliate networks.ClickBank Details:• Number of Products: 10,000++• Type: CPS• Payment Method: ACH (Direct Deposit), Check• Payment Period:Weekly
  39. 39. Commission Junction• Commission Junction or CJ is the one of largest affiliate network.• 1500+ Product available there.• Commission Junction Provides lots of useful features that make you morecomfortable With commission Junction.• Commission Junction Approve instant account activation.Commission Junction Details:• Number of Offers: 1500+• Type: CPA,CPL,CPS• Payment Method: ACH (Direct Deposit), Check• Payment Period: 20 to 30 Day
  40. 40. LinkShare• As a LinkShare publisher you have access up to 1000+ product to promote.• LinkShare also organize great customer support.• LinkShare Offers comparable feature to make you comfortable with LinkShare.LinkShare Details:• Number of Offers: 1000+• Type: CPA,CPL,CPS,CPC• Payment Method: ACH (Direct
  41. 41. Some Other ImportantAffiliate Networks
  42. 42.
  43. 43. Popular Stores Today’sTop Coupons Share on Social Media Win the Gift Card Excellent Search Quick PollNewsletter & EmailAlerts PowerTools to Share
  44. 44. Our Favorite Coupons Social Media sharing Most Popular Coupons (community popularity) Coupons by Email Live Help (Helping before ecommerce transaction)
  45. 45. Integrates Articles (adds value to salesprocess) Integrates DataFeed to show Savings(prepares consumer in advance) Countdown (creates Amazon likeexperience)Weekly Newsletter
  46. 46. Affiliate Network sites in India
  47. 47. • Affiliate Curry - Supposedly India’s first affiliate network offering a small range of Indian affiliateprograms.• Affiliate Network – Offers affiliate network and provides commission to affiliates on a click basis• Cine Chance- At the Starting you will get Rs. 5 for every confirmed registered member of Cine Chancewho comes from a banner/text link on your site. If they get satisfied with your conversion rate, theycan increase your commission upto Rs 10 per free registration.• ClixGalore India – Offers five scaled levels of affiliate recruitment and promotional services to theirmerchants with a small but growing position in the India Affiliate Marketing industry. Network accessto the USA, Japan, Australia, India and the UK.• dgm India - A wholly own subsidiary of Deal Group, part of dgm Holdings Plc.The Company’sprincipal activity is the delivery of ROI through affiliate marketing, search engine marketing, displayinventory and email, either as individual channels, or as a complete solution.• Media Marketing Online – Provider of Online Marketing services and Sales Solutions with variousservices like Search Engine Optimization , website optimization services, Search Engine Marketingsolutions, PPC Management Services etc based in India with host of services for Advertisers,Publishers and Agencies.• Tyroo – Offers pay per click ads. Generate tags for various categories on your website afteridentifying the size and type of ads that you want us to serve.• Webshree – Network of web sites and representatives selling your product on a commission-onlybasis.
  48. 48. Individual websites providing affiliate prog.
  49. 49. • Bazaar of India –You can earning 20% commission when your reference buy its herbal products.• – India’s leading matrimony site offering banner ads, text ads, and emailmarketing. Earn commissions of upto 50% of the paid subscriptions fee.You earn when visitors reachBharatMatrimony from your website and becomes a paid subscriber.• Career khazana –Whenever any employer visits the site through your link and becomes a premiummember, you earn 25% of a net membership fee.• ChennaiBazaar – Earn 8% commissions on sale value on every successful sale generated.• ClickAunty – 25% of each order placed by a referral. 15% of each renewal order.• Crafts in India – Craftsinindia invites queries from the organizations interested in being its affiliates.• ebay – You can refer ebay to friends and earn USD 3 per active confirmed registered user.You can alsosell ebay products on your site.There is now a ebay India, so people can trade in INR as well. ebay alsohas partnerships with other global affiliate networks like Commission Junction and Auction Ads.•• Ferns n petals – Earn up to 15% commission on referred merchandise sales with a 10 day cookie forreturn visitors.You get commission on all sales that take place up to 10 days after you send someoneto Fernsnpetals. For example, if a customer visits your site and clicks on its banner ad and doesn’t buyanything right away, but purchases something at Fernsnpetals a few days later, you still get creditedfor the sale.• Fropper – Add a link on your site to Fropper.Whenever someone visits through this linkand becomes a premium member, you can earn up to 50% of the fee.
  50. 50. • India club – Online shopping site.You can sell Indian Books, Music, Paintings and Multimedia on yoursite and earn up to 10% in referral fees.• India Herbs – Paying you 40% commission on sales generated from your referrals. Paying you 10%commission on all sales generated on the websites of your referrals.• Indiatimes –You get paid 10% of sale by simply referring a visitor to this online shopping portal.• IndianFriendfinder – It pays you USD 1.00 for each woman and USD 0.50 for each man that signs upfor a free membership.The more traffic you send, the more you earn with its percentage program.You earn an extra 10% when other affiliates sign up under your broker ID.• IndianKarma – Pays you 40% commission for each member who signs up for a paid membership.• IndianMatromonialNetwork – Based on a set performance.The higher the performance, the moreyou will earn!The base commission is 40%.• IndianMatrimonials –With its affiliates program, you earn 30% on all sales referred by your site.Thatmeans if someone signs up for one of its Deluxe accounts, you earn up to USD 17.70 per sale withoutdoing anything. Once a month all affiliates with referral revenues of at least USD 25.00 are paid.• Indianplaza – Link your site to products on Indianplaza and and it will pay you a fee for every itemsold through a referral coming from your site.• IndianOnNet – As soon as your referral pay its fees, it sends you 40% of the fees as your commission.Your referrals might in turn ask their friends to subscribe to the paid services of IndiansOnNet. If thesefriends of theirs join, then you receive 15% of the fees.
  51. 51. • India travel – Opportunity to earn rewards for sending customers who register withIndiatravel and who book trips.• JeevanSathi-All you need to do is to provide a Banner link on your website that fetchesfree and paid registrations to JeevanSathi. For every Free as well as Paid Registration youwill be entitled to a commission.• Lifepartner India –You can place its links on your site.When users registered atLifepartners India and becomes a premium member, you earn 50% commission.• Makemytrip – is an online travel company and among the mostsuccessful Internet companies in the country. It provides an affiliate service for which youhave to write to the site explaining your business details.• Matri-MoneyThe Matri-MoneyAffiliate Network offers multiple IndianAffiliate Programsacross 14 Matrimony sites, offering up to 50% commission on paid registrations.• Money cosmos – It pays you up to USD 1.00 for each user who registers for free. It alsopays you a whopping 20% extra for transactions generated by members referred by you.• Organic India – Its affiliate program allows you to sell tea and other natural products.Youcan receive 10% commission for every item sold through your site.• rishte hi rishte –You will earn Rs 15.00 for each member referred by you who signs up forfree in its matrimonial section.You will earn Rs. 3.00 for each member who signs up for freein its matrimonial section referred by affiliates under you.• Salwar Kameez – All Affiliates, Super-Affiliates, SEO’s,Asssociates, Distributors, Dealers,Representatives,Agents are welcome to join its International team and share the profits.
  52. 52. • – Earn upto USD 0.55 on every free profile and upto 40% revenueshare – USD 44 for every paid membership.• TajOnline – 5% revenue share on every purchase made onTajonline through yourwebsite. Advance Program: 5% revenue share + recurring commission onpurchases made by an individual for 1 year.• Techtribe frontFoot – With frontFoot, companies post high-paying jobopportunities that they are looking to fill, and techTribe members refer people intheir network for those opportunities. If the company hires a candidate that wasreferred, the person who made the referral is rewarded financially.
  53. 53. Affiliate marketing drove£4.62bn in online sales during2010, a 12% increase on2009(£4.13bn)This means affiliate marketingdrove 8%of all online retail salesMarket Size & Trends
  54. 54. AffiliateMarketing:Market SizeInfograph
  55. 55. Affiliate Strategies to ImplementBasic Segmentation Organize Popular Sections Shadow the Merchant Integrate Social Media Add Shopping Guides Best Sellers Surveys Live HelpAdvanced• Personalization• Account Registration• Enhanced Search• Mobile Applications• Cross Sell & Related• Email Alerts• Loyalty• International
  56. 56.
  57. 57. • is an “onlinesocial product discoveryplatform” focused on onlineshopping in India• Indiplum has about 40 onlinemerchants in India participatingin the “Plum andEarn” program currently, but isactively expanding its onlinemerchant network, with the aimto eventually cover the entireIndian ecommerce industry.
  58. 58. What makes one love Indiplum!!!• Product discovery on the site is very easy and fun.• Things organised in contextual and intuitive manner.• The best thing is one get to know is what my friends are plumming, likingand commenting on!! (Social Factor)• By the “plum and Earn” program, the company has given one more goodreason to be stuck to the site and making good bucks along with makinggreat boards.
  59. 59. A few things that I suggest
  60. 60. 1. The upper left image is of G+ page whichhas a 3D separation in the options tab withunderlining of the options chosen where asit is not so with our site.• We also need to be working on our User Interface because for a site like indiplum which has3600 visitors per day an awesome UI will be beneficial in retaining our visitors.(I don’t say its mandatory because we can see sites like Quora with a simpe UI are still doing great.)• “Google +” integration.( I just love G+ !! )
  61. 61. QUIDCO.
  62. 62. What is Quidco?• Quidco is basically a referral site that pays cashback for purchases you make at online stores, and itworks like this.1.You visit Quidco and log into/create your account2. Choose your online merchant, from shops such as O2, HMV, to utility companieslike npower and BritishGas, and look at the cashback offers3. If you see an offer you like, click the link and it will take you to the vendors site.4.You then browse the site as if you had typed in the web address yourself.5. If you make a purchase, that falls under the cashback terms, you should then get cashbackcredited to your account.
  63. 63. Quidco: Cashback affiliates UK• Quidco is a cashback affiliate established in UK• One browse through thousand of retailers and offers on the site and if one goes to the retailer’s sitethrough cashback button and purchases then he is given the refferral sales commission.• Similarly HOT DEALS,WAYTO SAVE andVOUCHER works with money back strategy of the company.• They have mastered the fields of printable vouchers, in-store cashback, mobile apps• Quidco Compare is similar to comparative shopping where one seeks for quotes from different retailers ofthe same product.• Now even provides 2€ bonus on sign up• The idea of site is relatively simple.You register with the site and when you buy online you visitthe same retailers as usual, but via a link on your cashback site. When you make a purchase, theretailer pays a commission to your cashback site, who in turn gives you a cut of the money
  64. 64. FEATURES• Cashback deals — Retailers pay us a commission to generate sales for them and we pay thisstraight into your bank account. Whether it’s a fixed cash sum or a percentage of the purchaseprice we aim to credit your account as quickly as possible.• In-store cashback — Register your debit and credit cards with us and receive instant discountson selected retailers and purchases when you visit their stores.• Voucher codes — Use our voucher codes for instant discounts when making online paymentswith listed retailers. Moreover, with over 95% of our codes working in tandem with cashbackoffers you’re set to make even bigger savings.• Printable vouchers — Print vouchers from our site to get instant discounts when you’re out andabout on the high street stores or grabbing a bite to eat at restaurants.• Quidco Compare — Save time and money with our insurance comparison tool which not onlysources the best deals but also offers cashback• Quidco mobile app — Our free app not only informs you of vouchers and money-off deals inyour GPS located area, but also pays you cash in return for simply walking in to certain stores.The check-in for cash function is entirely new to the UK.• ClickSnap — Get paid cashback on your everyday supermarket shopping. Browse our offers andredeem them either in-store and/or online. Shop in-store, buy the featured products, snap andupload a picture of your receipt within 7 days or click through to your favoured onlinesupermarket via ClickSnap and buy the featured products.
  65. 65. HISTORY• Introduction Quidco is a cashback and voucher code website based in the UK. Paul and JenniferNikkel co-founded Quidco whilst studying at the University of Sheffield in 2005 as a way ofsaving students money as they shopped online.The website launched in Sheffield in May 2005with the London office opening in 2007.• CashbackThe site takes the commission (termed ‘cashback’) usually paid by retailers to third-party referrers and passes it on to Quidco members.The first £5 of cashback is retained eachyear in order to fund the running of Quidco.• Voucher codes and printable vouchers Quidco launched voucher codes and printable vouchersin July 2010 as an additional service to cashback.• In-store cashback In-store cashback was launched in November 2009, allowing Quidcomembers to earn cashback from selected retailers when shopping on the high street.• Egg Cash Back StoreThe Egg Cash Back Store was launched in June 2010 as a joint projectbetween Egg Banking and Quidco, offering Egg Card holders membership of a co-brandedQuidco website.• Apps Quidco’s iPhone app was released on the 1st of June 2011 in the iTunes Store.The appoffers cashback, voucher code and a UK first of paying individuals to ‘check-in’ to retailer outletsand received ‘Consumer app of the week’ from the Guardian and ‘App of the day’ iPad version of the Quidco app was released on the 6th of July 2011.
  66. 66. What Quidco. do: A merchant’s perspective• They promote your brand basedon CPA increases / exclusive codesor offers• Or ideally – a combination of all!
  67. 67. Benefits of Cashback andVouchers• Immediate effect on sales• Grow revenue from existing / focus on new customers• Target your promotions to a brand, segment, product range or product• AOV tends to be higher through this channel• Raising awareness - massive audiences now• Active communities - social media power (i.e. Moneysaving Expert, HotUk Deals, Facebook andTwitter)
  68. 68. Case Studies - New Brand and new to Quidco• New Wine merchant• New Brand to the market• Came in with a strong offer,invested in the site, regular promotions• Great growth in sales.
  69. 69. Case Studies - Well established merchant• Experimented with increasing rates and increasing exposure.• Social media had a huge effect here. (HotUK deals, Moneysaving expert)• Focused on grabbing market share.
  70. 70. Case Study - Positive Loop hole• Purposely created loop hole• Created an offer of “free product” or “money generating”purchase• Seeded out throughcommunities, spread fast &achieved ambitious targets.• Quantity v/s Quality
  71. 71. Case Study – Exclusive and Extra Incentive• High CPA merchant• Limit to the amount of cashbackmerchant wishes to offer• Used Quidco exclusively in the2nd period• 22% increase in daily sales in the2nd period even though cashbackwas £5 less