The document discusses affiliate marketing and provides statistics on its growth. It notes that the affiliate marketing industry is projected to grow to $4.5 billion by 2016 according to Forrester estimates. General Black Friday and Cyber Monday sales statistics are also presented showing continued growth in online sales. The top affiliate marketing verticals and display networks are listed. The rest of the document discusses strategies for merchants to ensure affiliates optimize ad campaigns on their behalf through strong affiliate programs, software, manager support, and ongoing communication.

1. &
The Presence of
Affiliate Marketing

2. WhatRunsWhere.com & The Search Monitor
The Presence of Affiliate Marketing
2007 2008 2009 2010 2011 2012 2013 2014
$1,657
$1,841 $1,941
$2,150
$2,533
$2,989
$3,473
$4,012
WhatRunsWhere.com & The Search Monitor

3. WhatRunsWhere.com & The Search Monitor
The Presence of Affiliate Marketing
WhatRunsWhere.com & The Search Monitor
Earlier this year, Forrester estimated the affiliate
marketing industry would grow to
$4.5 billion
by 2016

4. General Stats from Black Friday
$12.5 Billion
Total brick & mortar sales on
Thanksgiving & Black Friday
Up 2.3% from 2012
$2.29 Billion
Total online sales on
Cyber Monday
Up 16% from 2012
40%
Percentage of retail web traffic
from mobile devices
Up 34% from 2012
WhatRunsWhere.com & The Search Monitor

5. Affiliate Reach on Search: Top 5
Verticals
WhatRunsWhere.com & The Search Monitor
10%
7.4%
7.3%
Apparel Home &
Garden
Hobbies &
Leisure
Sports &
Fitness
Beauty
7%
Footwear:
24%
% of Advertisers that
are Affiliates
Scale
Models:
15%
Perfume:
11%
7.5%

6. WhatRunsWhere.com & The Search Monitor
Affiliate Adherence to Merchant
Rules
34%
38%
10%
18%
Low
Complies
Medium
TM Bids
High
Direct Links
Extreme
Direct Links +
TM Bids
% of Affiliates
72% Comply

7. WhatRunsWhere.com & The Search Monitor
The Presence of Affiliate Marketing
WhatRunsWhere.com & The Search Monitor
Top Affiliate Marketing Niches ...
• Health & Wellness
• Diet
• Education
• Auto Insurance
• Online Games
• Dating

8. WhatRunsWhere.com & The Search Monitor
The Presence of Affiliate Marketing
WhatRunsWhere.com & The Search Monitor
Top Display Networks ...

9. Finding Success
with Affiliate
Marketing
as a Merchant
&

10. Q: Why are more and
more Merchants starting
Affiliate Programs?
• Pay only for performance You only need pay
them if they make a profit for you
• Consumer that shop via affiliate links spend an
average of $7 more than the aver age shopper
• Online shopping through affiliate referrals are
43% more likely to convert that average
WhatRunsWhere.com & The Search Monitor

11. Merchants on average see 23% of
total online sales coming from the
affiliate channel.
WhatRunsWhere.com & The Search Monitor

12. Walmart vs. Target PPC Spending
Who Had the Better Strategy…
• Walmart who front loaded PPC, then relied on organic?
• Target who conserved budget, then pushed hard?
What Happened to Target in September?
Mistake or intentional after big spending for back to school?
WhatRunsWhere.com & The Search Monitor

13. Super Affiliate Strategy
Own the Page. Control the Market
Affiliates
Merchant Maintains Top Rank
Achieved Using Rank Rules
Monitoring
WhatRunsWhere.com & The Search Monitor

14. Case Study:
WhatRunsWhere.com & The Search Monitor

15. WhatRunsWhere.com & The Search MonitorWhatRunsWhere.com & The Search Monitor
Top Affiliate Marketing Strategies
Affiliate
Content
Email
SEO
Blog
Display
Review
PPC
Social
Network
Shopping
Incentive

16. WhatRunsWhere.com & The Search Monitor
Top Affiliate Marketing Strategies
• Know Your Audience
• Pick a Unique Niche
• Spy on Your Competition

17. Understanding
Affiliate Marketing’s
Competitive
Landscape
&

18. Affiliate Marketing’s Competitive
Landscape
As affiliate marketing has caught
on over the years it has quickly
become a very competitive
market.
Just like in any other industry
affiliate marketers must assess
their competition...
WhatRunsWhere.com & The Search Monitor

19. WhatRunsWhere.com & The Search Monitor
Information That Matters:
Search Ads
Learn. Protect & Defend.
Partners Affiliates Resellers
• Cohesive Strategies that Work
Together
Rank, Messaging, PLA vs. PPC
• Avoid Channel Conflict
direct linking, offer codes
• Reputation Management
expired offers, offer wording, landing
page copy
Competitors’ Partners
• Winning Ad Copy
Offers, Us vs. Them
Comparisons
• Partner, Affiliate, Reseller
Strategies
impression share & rank on
keywords, on TMs
Who is beating you on your own
best terms?

20. Top 5 Questions Every
Affiliate Marketer Must
Know About Their
Competition
WhatRunsWhere.com & The Search Monitor

21. WhatRunsWhere.com & The Search Monitor
1
Who am I competing with on the
display networks for my target
niche?

22. WhatRunsWhere.com & The Search Monitor
2
What are my competitors top
performing display ads?

23. WhatRunsWhere.com & The Search Monitor
3
What ad networks are my
competitors using?

24. WhatRunsWhere.com & The Search Monitor
4
Where are my competitors placing
their ads?

25. WhatRunsWhere.com & The Search Monitor
5
How can I make my display ads
more click-worthy than my
competitors?

26. How Affiliate Marketers are
Using Search & Display
Advertising to Boost the
Sales of Merchants
&

27. WhatRunsWhere.com & The Search Monitor
Popular Offers – Black Friday
TIP
Monitor Competitive
Offers. Ask Merchants
for Compelling and
Unique Promos!

28. Product Listing Ads
% of KWDS
w/PLA’s
WhatRunsWhere.com & The Search Monitor
TIP
Merchant Own
PLA. Affiliate
Own PPC!

29. Ad Extensions
WhatRunsWhere.com & The Search Monitor
TIP
Be Unique! Don’t forget
phone numbers and
other ad extensions.
Percentage of ads displaying a phone number.
0.11%

30. Affiliate Marketers and Display
Advertising
WhatRunsWhere.com & The Search Monitor
Affiliates use display advertising to
promote the products of merchants.
In turn, they gain commissions
based on sales

31. Affiliate Marketers and Display
Advertising
• Fairly simple method to learn
• Can be relatively inexpensive
• Plenty of sources to gain data
and market research
• Many affiliates have found
great success using display
advertising
WhatRunsWhere.com & The Search Monitor

32. How Merchants Can
Ensure Affiliates Optimize
Ad Campaigns on Their
Behalf
&

33. Successful Affiliate Programs can
account for up to 30% of
Online Sales
WhatRunsWhere.com & The Search Monitor

34. But, the question is:
How can online merchants create
a successful affiliate program?
WhatRunsWhere.com & The Search Monitor

35. 1 Create an Affiliate Program that
attracts strong members
• Have a Strong Commission Structure
The harder your product is to sell, the
higher a merchant’s commission must be.
• Reward Success
The higher the sales, the higher the
commission rates.
WhatRunsWhere.com & The Search Monitor

36. 2 Strong Affiliate Software or Manager
• Platforms like HasOffers and Cake can
help merchants to track the success of
registered affiliates
• It also gives affiliates access to real time
reporting with tracking
WhatRunsWhere.com & The Search Monitor

37. 3 Strong Affiliate Software or Manager
• Likewise, merchants can hire an affiliate
manager to look after an affiliate program
• Hiring an affiliate manager is a great way
for merchants to keep track of affiliates
and lead them to success
WhatRunsWhere.com & The Search Monitor

38. 4 Keep Affiliates Informed
• Blogging
Using a blog, merchants can share tips
and updates to increase the success of
affiliates.
• Email Marketing
This helps merchants to stay top of mind
and connected to affiliates by directly
engaging.
WhatRunsWhere.com & The Search Monitor