This presentation is from Affiliate Summit West 2017 (January 15-17, 2017 in Las Vegas, Nevada). Session description: Learn why 2017 is the year of the Affiliate Marketing Renaissance and understand how taking advantage of evolving content can help capture the micro-moments that influence buyer decisions.

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

3. The 2017 Renaissance
—

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.

9. 9
Quality Quantityvs

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

34. Thanks!
Let’s keep talking.
maurasmith@pepperjam.com
pepperjam.com
@pepperjam
#PepperjamASW