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The time is now!
Join the Affiliate Marketing Renaissance
—
Maura Smith, Senior Vice President and Head of Affiliate Services
Maura Smith
SVP, Head of Affiliate Services
Pepperjam
10 Years Affiliate Marketing Experience
Education
BS, Marketing
University of Delaware
MBA, Marketing
University of Scranton
Raising 1 child,
1 husband and a poodle
Fitness Wannabe
Wine Enthusiast
Shopaholic
The 2017 Renaissance
—
How you can take part
in the 2017 Affiliate
Marketing Renaissance
Explore the pain points brands
& marketers are feeling.
1
Understand exactly what a renaissance is
and how 2016 growth set the stage.
2
Know where you fit into the renaissance
and how you can leverage the power
of affiliate marketing.
3
Conversions alone are like
social media followers without interactions.
Without engagement, it just doesn’t matter.
9
Quality Quantityvs
10
Where We Are: The Pain Points
Data is widely available, but marketers are not able
to leverage it to make real-time strategic decisions.
What should results be optimized to?
11
Traditional revenue measurements no longer work.
Static measurements can create false impression
that ad spend is ineffective.
Consensus to move away from ROI
and towards new customer conversions.
Where We Are: The Pain Points
12
“The price of light is less than the cost of darkness.”
- Arthur C. Nielsen, founder AC Nielsen Company
13
Learning to manage…
Sharing control with third-party publishers.
Marketing decisions that may not be able to happen in real-time.
A general lack of education about the role affiliate marketing
plays in the consumer journey.
Where We Are: The Learning Curve
14
“When you’re trying to make an important decision,
and you’re sort of divided on the issue, ask yourself:
‘If the customer were here, what would she say?’”
- Darmesh Shah, CEO Hubspot
15
Where We Are: The New Consumer
Consumers are researching more.
* Pepperjam, 2016 **Forbes Insights, 2016
Desktop and in-store
purchases are seeing a
significant revival.*
Cyber Weekend 2016 saw
a 20% increase in YoY
desktop revenue.*
of retailers report consumers
research online but
purchase in-store.**
46%
16
Reaching consumers is more challenging than ever.
Where We Are: The New Consumer
Marketers must now work
around affiliate nexus laws.
Tactics must still be able to reach
consumer with ad-blockers.
17
2016: The Year of
Affiliate Marketing Growth
Ad spend increased 10% from H1 2015 to H2 2016.*
28% of ad spend in H1 2016 went to affiliate. **
Affiliate now accounts for 7.5% of digital retail spend.*
* eMarketer 2016 ** Pepperjam
US Affiliate Marketing Spending, 2015 – 2020
billions
2015 2016 2017 2018 2019 2020
$4.21
$4.78
$5.37
$5.94
$6.40
$6.82
Source: “Networks Help Drive Affiliate Marketing Into
The Mainstream” conducted by Forrester Consulting, Feb 3,2016
www.eMarketer.com
2017: The Year of the
Affiliate Marketing Renaissance
—
Renaissance
a movement or period of vigorous artistic
and intellectual activity [revival, rebirth]
20
“We see our customers as invited guests to
a party, and we are the hosts. It’s our job
every day to make every important aspect
of the customer experience a little bit better.”
- Jeff Bezos, Founder Amazon
21
Using Affiliate Marketing to…
Leverage the Power of
Consumer Data
• A deep and expanding
disconnect exists between
C-suite and marketers as
data and spend continue to
mismatch.
• 80% CEOs don’t trust
marketing teams and 58%
CMOs feel a growing pressure
to prove their results.*
• Less then 1/3 of marketers
utilize analytics.*
2017 Renaissance
* Duke Fuqua School of Business
22
• Get a holistic view of
consumer behavior.
• Optimize spend and ROI
based on performance.
• Create the most resonant
brand experience to target
consumers and encourage
engagement.
Using Affiliate Marketing to…
Boost Marketing Value
2017 Renaissance
2017 Renaissance
new customer
acquisition
due to targeting
57%
Result
• Publishers were key to new
business but stagnant.
• Flat-rate commissioning meant
customer’s weren’t getting a
unique experience from the start.
• Affiliate marketing allowed them
to commission publishers based
on customer type.
• Vast array of options =
consumers that frustrate easily
• 43% of non-couponers used to
use coupons and loyalty sites
but gave up because of
setbacks.*
• 2017 is the year to overcome
past stigma and re-introduce
affiliate marketing to consumers.
• Affiliate is evolving to consider
the customer experience in its
entirety, not on a brand by brand
basis.
Using Affiliate Marketing to…
Build Distinct Customer
Experiences
2017 Renaissance
* Pepperjam
25
2017 Renaissance
Breaking Down Consumer Behavior
Consumers use publisher sites for
3 main reasons…
To save money To have fun
browsing
Recommended by
family/friends
They STOP using them
for the following reasons:
• Hard to navigate
• Takes too much time
• Deals are not good
• Clunky transition to retailer site
• Deals don’t work
• No brands/retailers they like
*based on a recent study with 200 participants
26
2017 Renaissance
What We’ve Heard from Consumers:
“When I clicked on the coupon code,
it didn’t take me to the products.”
“I don’t want to go through 100
pairs of shoes, just the particular
style I’m looking for.”
“I’m skipping over ‘up to % off.’
I like concrete things.”
Maximize Affiliate Marketing
—
Time to turn the tables on traditional marketing
Yoga instructor gives business card to
people in class with a unique code on it.
Unique code on card is tied to a
Pepperjam link.
Customer places an order using
the code.
Pepperjam gives that instructor credit.
29
• Ambassadors now account
for 28% of program revenue.
• Ambassadors now make up
18% of affiliate publishers.
• No traditional affiliate site
was needed.
Using Affiliate Marketing to…
Leverage Partner Distribution
2017 Renaissance
48
charities
Top jewelry retailer
integrated charities as
publishers/affiliates.
Affiliate platform
reported on performance.
Charities shared across
social media.
Jewelry retailer donated
10% of purchase.
31
• Pepperjam leveraged its
technology to support a
charitable campaign for a
top jewelry retail partner.
• Pepperjam integrated 48
charities onto its platform.
• Participating charities shared
campaign across social media
& sites.
• Retailer donated 10% of the
sales they generated.
Using Affiliate Marketing to…
Incorporate Charitable
Initiatives
2017 Renaissance
32
Know your
consumers inside
and out
Leverage your
partners
Understand the
customer journey
Think beyond traditional
affiliate channels
Maximize Affiliate Marketing
The time is now for you to join
the Affiliate Marketing Renaissance
Thanks!
Let’s keep talking.
maurasmith@pepperjam.com
pepperjam.com
@pepperjam
#PepperjamASW

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The Time is Now for an Affiliate Marketing Renaissance

  • 1. The time is now! Join the Affiliate Marketing Renaissance — Maura Smith, Senior Vice President and Head of Affiliate Services
  • 2. Maura Smith SVP, Head of Affiliate Services Pepperjam 10 Years Affiliate Marketing Experience Education BS, Marketing University of Delaware MBA, Marketing University of Scranton Raising 1 child, 1 husband and a poodle Fitness Wannabe Wine Enthusiast Shopaholic
  • 4. How you can take part in the 2017 Affiliate Marketing Renaissance
  • 5. Explore the pain points brands & marketers are feeling. 1
  • 6. Understand exactly what a renaissance is and how 2016 growth set the stage. 2
  • 7. Know where you fit into the renaissance and how you can leverage the power of affiliate marketing. 3
  • 8. Conversions alone are like social media followers without interactions. Without engagement, it just doesn’t matter.
  • 10. 10 Where We Are: The Pain Points Data is widely available, but marketers are not able to leverage it to make real-time strategic decisions. What should results be optimized to?
  • 11. 11 Traditional revenue measurements no longer work. Static measurements can create false impression that ad spend is ineffective. Consensus to move away from ROI and towards new customer conversions. Where We Are: The Pain Points
  • 12. 12 “The price of light is less than the cost of darkness.” - Arthur C. Nielsen, founder AC Nielsen Company
  • 13. 13 Learning to manage… Sharing control with third-party publishers. Marketing decisions that may not be able to happen in real-time. A general lack of education about the role affiliate marketing plays in the consumer journey. Where We Are: The Learning Curve
  • 14. 14 “When you’re trying to make an important decision, and you’re sort of divided on the issue, ask yourself: ‘If the customer were here, what would she say?’” - Darmesh Shah, CEO Hubspot
  • 15. 15 Where We Are: The New Consumer Consumers are researching more. * Pepperjam, 2016 **Forbes Insights, 2016 Desktop and in-store purchases are seeing a significant revival.* Cyber Weekend 2016 saw a 20% increase in YoY desktop revenue.* of retailers report consumers research online but purchase in-store.** 46%
  • 16. 16 Reaching consumers is more challenging than ever. Where We Are: The New Consumer Marketers must now work around affiliate nexus laws. Tactics must still be able to reach consumer with ad-blockers.
  • 17. 17 2016: The Year of Affiliate Marketing Growth Ad spend increased 10% from H1 2015 to H2 2016.* 28% of ad spend in H1 2016 went to affiliate. ** Affiliate now accounts for 7.5% of digital retail spend.* * eMarketer 2016 ** Pepperjam US Affiliate Marketing Spending, 2015 – 2020 billions 2015 2016 2017 2018 2019 2020 $4.21 $4.78 $5.37 $5.94 $6.40 $6.82 Source: “Networks Help Drive Affiliate Marketing Into The Mainstream” conducted by Forrester Consulting, Feb 3,2016 www.eMarketer.com
  • 18. 2017: The Year of the Affiliate Marketing Renaissance —
  • 19. Renaissance a movement or period of vigorous artistic and intellectual activity [revival, rebirth]
  • 20. 20 “We see our customers as invited guests to a party, and we are the hosts. It’s our job every day to make every important aspect of the customer experience a little bit better.” - Jeff Bezos, Founder Amazon
  • 21. 21 Using Affiliate Marketing to… Leverage the Power of Consumer Data • A deep and expanding disconnect exists between C-suite and marketers as data and spend continue to mismatch. • 80% CEOs don’t trust marketing teams and 58% CMOs feel a growing pressure to prove their results.* • Less then 1/3 of marketers utilize analytics.* 2017 Renaissance * Duke Fuqua School of Business
  • 22. 22 • Get a holistic view of consumer behavior. • Optimize spend and ROI based on performance. • Create the most resonant brand experience to target consumers and encourage engagement. Using Affiliate Marketing to… Boost Marketing Value 2017 Renaissance
  • 23. 2017 Renaissance new customer acquisition due to targeting 57% Result • Publishers were key to new business but stagnant. • Flat-rate commissioning meant customer’s weren’t getting a unique experience from the start. • Affiliate marketing allowed them to commission publishers based on customer type.
  • 24. • Vast array of options = consumers that frustrate easily • 43% of non-couponers used to use coupons and loyalty sites but gave up because of setbacks.* • 2017 is the year to overcome past stigma and re-introduce affiliate marketing to consumers. • Affiliate is evolving to consider the customer experience in its entirety, not on a brand by brand basis. Using Affiliate Marketing to… Build Distinct Customer Experiences 2017 Renaissance * Pepperjam
  • 25. 25 2017 Renaissance Breaking Down Consumer Behavior Consumers use publisher sites for 3 main reasons… To save money To have fun browsing Recommended by family/friends They STOP using them for the following reasons: • Hard to navigate • Takes too much time • Deals are not good • Clunky transition to retailer site • Deals don’t work • No brands/retailers they like *based on a recent study with 200 participants
  • 26. 26 2017 Renaissance What We’ve Heard from Consumers: “When I clicked on the coupon code, it didn’t take me to the products.” “I don’t want to go through 100 pairs of shoes, just the particular style I’m looking for.” “I’m skipping over ‘up to % off.’ I like concrete things.”
  • 27. Maximize Affiliate Marketing — Time to turn the tables on traditional marketing
  • 28. Yoga instructor gives business card to people in class with a unique code on it. Unique code on card is tied to a Pepperjam link. Customer places an order using the code. Pepperjam gives that instructor credit.
  • 29. 29 • Ambassadors now account for 28% of program revenue. • Ambassadors now make up 18% of affiliate publishers. • No traditional affiliate site was needed. Using Affiliate Marketing to… Leverage Partner Distribution 2017 Renaissance
  • 30. 48 charities Top jewelry retailer integrated charities as publishers/affiliates. Affiliate platform reported on performance. Charities shared across social media. Jewelry retailer donated 10% of purchase.
  • 31. 31 • Pepperjam leveraged its technology to support a charitable campaign for a top jewelry retail partner. • Pepperjam integrated 48 charities onto its platform. • Participating charities shared campaign across social media & sites. • Retailer donated 10% of the sales they generated. Using Affiliate Marketing to… Incorporate Charitable Initiatives 2017 Renaissance
  • 32. 32 Know your consumers inside and out Leverage your partners Understand the customer journey Think beyond traditional affiliate channels Maximize Affiliate Marketing
  • 33. The time is now for you to join the Affiliate Marketing Renaissance