Linkshare: How to get the most out of Affiliate Marketing


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Linkshare: How to get the most out of Affiliate Marketing, by Alex Cromford

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Linkshare: How to get the most out of Affiliate Marketing

  1. 1. Opportunities in Affiliate Marking Alex Cornford, Senior Business Development Manager 9 th February 2012
  2. 2. Agenda <ul><li>Who am I and what is LinkShare? </li></ul><ul><li>Affiliate Marketing in 2 minutes </li></ul><ul><li>Objectives of Affiliate Marketing </li></ul><ul><li>Benefits of Affiliate Marketing </li></ul><ul><li>Affiliate Marketing in action </li></ul><ul><li>Summary </li></ul>
  3. 3. Who am I and what is LinkShare? <ul><li>Over 280 UK Advertisers </li></ul><ul><ul><li>Focus on Retail & Travel </li></ul></ul><ul><li>Over 160,000 Quality Publishers in UK </li></ul><ul><li>Dedicated Teams </li></ul><ul><ul><li>Superior Client Service </li></ul></ul><ul><ul><li>Publisher Partnership Support </li></ul></ul><ul><li>International Presence: UK, US, Canada and Japan </li></ul>
  4. 4. Affiliate Marketing in 2 minutes <ul><li>Merchants want sales, affiliates want to monetize their traffic </li></ul><ul><li>Merchants promote their brand/products through their affiliate websites </li></ul><ul><li>Merchant pays commission to affiliate only for completed sales </li></ul><ul><li>True pay-for-performance marketing </li></ul>
  5. 5. How You Could Appear Banner Ads
  6. 6. How You Could Appear Product Links Text Links Embedded in Content
  7. 7. <ul><li>Online Advertising </li></ul><ul><li>No control over Publishers </li></ul><ul><li>Not for brand conscious merchants </li></ul><ul><li>Less important than traditional CPM, PPC deals </li></ul>Common Misconceptions about Affiliate Marketing
  8. 8. Affiliate Truths… At Least at LinkShare <ul><li>Increased Revenue </li></ul><ul><li>Brand awareness </li></ul><ul><li>New Customers </li></ul><ul><li>Big Brands do it </li></ul><ul><ul><li>Net-a-Porter, Harrods, Marks & Spencer, Evans, Topshop, LEGO, Waitrose </li></ul></ul><ul><li>Complete control </li></ul><ul><ul><li>Partners </li></ul></ul><ul><ul><li>Creative </li></ul></ul><ul><li>Many relevant sites </li></ul><ul><li>Measurable, Accountable </li></ul>
  9. 9. What can Affiliate Marketing do for you? Increase sales and revenue online Branding and product placement in competitor space Release relevant offers Support and convert other marketing into sales Merchandise products further online Pay only for converted sales – not traffic Increase distribution of products Appear in consumer’s advance purchasing phase Acquire new online customers Increase brand awareness Be where the shopper is spending time online
  10. 10. Benefits of Affiliate Marketing <ul><li>Affiliate Marketing drove £ 4.62 billion in sales in 2010* (a 10% increase on 2009) </li></ul><ul><li>Affiliate Marketing now accounts for over 10%* of all online display advertising </li></ul><ul><li>10-20% of online sales can be driven through an affiliate programme </li></ul><ul><li>Affiliate marketing rated most effective online channel next to PPC** </li></ul><ul><li>Perfect channel for difficult economic times </li></ul><ul><li>Only pay for converted sales, not traffic </li></ul><ul><li>Should become one of your lowest cost per order channels </li></ul><ul><li>Will provide growth while maintaining the integrity of your brand </li></ul>* * Source: e-Consultancy ** Source: State of Online Retailing
  11. 11. Voucher Publishers <ul><li>Can be used to create awareness of existing site offers. </li></ul><ul><li>Key placements can be achieved in exchange for exclusive offers </li></ul><ul><li>Offers can be free shipping, gift with purchase – it doesn’t need to be a discount </li></ul><ul><li>A great outlet for clearing underperforming product lines </li></ul>
  12. 12. <ul><li>LinkShare created and ran a Sweaty Betty promotion with in the run up to Wimbledon </li></ul><ul><li>1,700% increase in sales from the previous month </li></ul>Voucher Publishers Sweaty Betty Optimisation
  13. 13. Cash Back/Loyalty Publishers <ul><li>Huge membership schemes, some with over 1 million members </li></ul><ul><li>Cash or points are rewarded for shopping via their directory </li></ul><ul><li>Ability to drive significant sales volumes </li></ul><ul><li>Can be leveraged to ensure on-going customer loyalty to a brand </li></ul><ul><li>Variations on models e.g. Kidstart, Easy Fund Raising </li></ul>
  14. 14. Shopping Comparison <ul><li>Many working on a CPA, or will work back to CPA targets on a PPC basis </li></ul><ul><li>Fantastic sales drivers for competitively prices retailers </li></ul><ul><li>Many are now focusing on product as well as price, opening opportunities for full priced retailers </li></ul>
  15. 15. Email Publishers <ul><li>Distribution through bespoke email providers, as well as publishers own email subscription lists </li></ul><ul><li>Providers such as Feemax manage as many as 15 million UK emails </li></ul><ul><li>Publisher Opportunities range from large incentive sites which have over 1 million subscribers to magazine and niche content sites which hit a very defined audience </li></ul>
  16. 16. Content Publishers – The Mid to Long Tail <ul><li>Come in many forms from magazine and newspaper’s online titles, to individual bloggers </li></ul><ul><li>Often fantastic for reaching key demographics and niche audiences </li></ul><ul><li>Promotion to a devoted audience through editorial endorsement and product placements </li></ul><ul><li>You can help to drive the conversation on their site </li></ul>
  17. 17. Exclusive Content/Competitions Headline <ul><li>August Bank Holiday competition </li></ul><ul><li>Prize draw to win a full refund on their order. </li></ul><ul><li>Very successful – 1,000 entries </li></ul><ul><li>New consumers to target by email </li></ul>
  18. 18. Specially designed promotions <ul><li>Oasis join forces with LOOK to create a design-a-dress competition. </li></ul><ul><li>Readers were asked submit their designs with the winner announced in time for the Christmas party season. </li></ul><ul><li>Readers were then able to pre-order the winning dress, shop for other Oasis dresses or go straight through to the Oasis homepage. </li></ul>
  19. 19. Basket Abandonment <ul><li>On average 2/3 (66%) of commenced transactions are abandoned </li></ul><ul><li>Click to Conversion rates as high as 8% even with generic messaging </li></ul><ul><li>Can be as high as 40% if a discounted promotion is included </li></ul>
  20. 20. Strategic Partnerships <ul><li>The White Company & gift wish site Prezola </li></ul><ul><li>Perfect fit for their wide range of gifts, bed linen, baby gifts etc. </li></ul><ul><li>Consumers get to build their own bespoke gift lists with over 2,500 products being pulled from a multitude of retailers product feeds </li></ul>
  21. 21. <ul><li>Usually manage a closed site/intranet to present exclusive offers to member/employees </li></ul><ul><li>After at least an exclusive offer (free gift, free delivery, % off). These offers are not available to the general public </li></ul><ul><li>Some will take a reduced commission in order to keep the offer exclusive </li></ul>Employee Malls Employee Reward Sites
  22. 22. Social Publishers - Shopcade <ul><li>Convert your current customers into active sellers and advocates </li></ul><ul><li>Expand your user base </li></ul><ul><li>Offer increased visibility of your brand and your products on social media </li></ul><ul><li>Monetize your social media presence </li></ul><ul><li>7% conversion rate! </li></ul>
  23. 23. Social Publishers - Zibaba <ul><li>Customisable Store Front for Facebook </li></ul><ul><li>Promote your catalogue of products and drive sales from your Facebook followers </li></ul><ul><li>Encourages consumer promotion to friends through ‘likes’ </li></ul><ul><li>Assists in supporting promotion via Wall updates </li></ul>
  24. 24. International Shipping - Borderlinx <ul><li>Enables Consumers in over 50 worldwide countries to shop with UK or US retailers </li></ul><ul><li>Strong editorial voice through their counterpart magazine MySociety </li></ul><ul><li>High level of customisation through ‘pop up shops’ and in site content to promote catalogue of products </li></ul>
  25. 25. Mobile Publishers <ul><li>O2 Priority Moments Mobile App </li></ul><ul><li>20% off voucher </li></ul><ul><li>Redeemable in 5 stores </li></ul><ul><li>Targeted to O2 user’s actual location </li></ul><ul><li>Reported back to LinkShare’s system allowing commission to be paid on a CPA basis </li></ul>
  26. 26. In Summary <ul><li>Affiliate marketing allows you to </li></ul><ul><ul><li>Increase revenues, brand awareness and gain new customers </li></ul></ul><ul><li>With the right partners it is possible to build a results-driven affiliate program whilst protecting your brand. </li></ul><ul><li>The relevant pool of affiliates is growing every day – make the most of it! </li></ul><ul><li>True ‘pay for performance’ marketing. </li></ul>
  27. 27. Questions and Thank You! Presented By: Alex Cornford Senior Business Development Manager +44 (0) 207 031 0946 [email_address]