Mobile trends including traffic from individual devices – including tablets, conversion rates, challenges, how incentivization is shaping the channel, how mobile isn’t one channel – it’s multi-channel. Experience level: Intermediate Target audience: Merchant/Advertiser Niche/vertical: Local Kevin Edwards, Strategy Director, Affiliate Window (Twitter @AWin_Strategy)

1. M-Commerce in
M-Commerce in
Affiliate Marketing:
Affiliate Marketing:
The Complete
The Complete
Picture
Picture
@Awin_Strategy
@Awin_Strategy
Kevin Edwards, Affiliate Window
Kevin Edwards, Affiliate Window
kevin.edwards@affiliatewindow.com
kevin.edwards@affiliatewindow.com
strategy@affiliatewindow.com
strategy@affiliatewindow.com

2. GLOBAL PERFORMANCE
MARKETING EXPERTS
ESTABLISHED IN PART OF LARGEST GLOBAL
2000 PERFORMANCE NETWORK
TIMES WINNER OF 1,700
PUBLISHERS’ CHOICE MERCHANTS
OF NETWORK
$2.5bn TIMES WINNER OF
BESPOKE
AFFILIATE NETWORK
INNOVATION PORTFOLIO SERVICES
2

3. The
Affiliate
Mobile
Landscape

4. 55% of US & 62% of UK
55% of US & 62% of UK
adults have smartphones,
adults have smartphones,
double digit YoY growth
double digit YoY growth
58% of US teenagers
58% of US teenagers
have smartphones;
have smartphones;
faster adoption than
faster adoption than
any other age group
any other age group
Different demographics
Different demographics
...Phenomenal adoption:
and ages choosing different
and ages choosing different can we keep
up...?
handsets; marketing impact
handsets; marketing impact
*Ofcom, Communications Market Report, August 2011

5. The iPhone is aspirational
The iPhone is aspirational
and enjoys high ABC1
and enjoys high ABC1
concentration
concentration
Android is king of the
Android is king of the
handsets: but who is
handsets: but who is
winning the m-
winning the m-
Commerce war?
Commerce war?
16-24 prefer Blackberrys
16-24 prefer Blackberrys
(37%) to iPhones (25%)
(37%) to iPhones (25%)

6. Our data references
Our data references
over 1.5 clicks...
over 1.5 clicks...
...and nearly 45m
...and nearly 45m
sales from 1,400
sales from 1,400
retailers
retailers

7. ‘MOBILE’ DEVICES: TABLET AND HANDSET
Tablet
Tablet Handset
Handset
urrent
Cu
C r r ent
cc 60/40
..60/40
salle
sa e splliit
sp t
7

8. MOBILE TRAFFIC (TABLET AND HANDSET):
JAN 2011 – DEC 2012
hs
t hs
nt
on
mo
4 m
24
n 2
iin
9%
9%
o1
to
t 1
2%
2%
Fr
From
om
8

9. MOBILE SALES (TABLET AND HANDSET):
JAN 2011 – DEC 2012
hs
t hs
nt
on
mo
4 m
24
n 2
iin
4%
4%
o1
to
t 1
2%
2%
Fr
From
om
9

10. MOBILE HANDSET TRAFFIC:
JAN 2011 – DEC 2012
hs
t hs
nt
on
mo
4 m
24
2
iin
n
1 1%
1%
o 1
to
t
1.
1 8%
. 8%
Fr
F om
r om
10

11. MOBILE HANDSET SALES:
JAN 2011 – DEC 2012
th s
on t
on hs
24
24 m
m
6% iin
n
to
to 6%
.5%
. 5%
m1
ro m
F ro
1
F
11

12. THE MOBILE/SALES DICHOTOMY
All mobile traffic/sales
All mobile traffic/sales All handset traffic/sales
All handset traffic/sales
wwn
on
oo nwn
gr w d
ggr n
sgr o n d
as r a
hh s ’’y a
hs
ha a gllt
iic a n y x7 ff
ffiic c oinn t x7 all
x10 a ffc r os g
raff sut i n ynh a
tr a sur s
t tr b t
tt ra yb t t la nh
x10
d s t a ly
st a l
llee gllyy
ee t r y th
ahla th
T
HT a
aa bd
nb on g
an trion e tr
r ah w
h n e ro
:: e r ro w
H ptti s r
ce x6 inrt we rff c
p
s s e fa
ce x6 iergswh fraiff lg n f gc
lgl he iic
hiil ic f g
ex nt egt tpat
ex rv n tfopra
ent k fotr t
o rv o t
nv e dee o
nc o tesk
v
co c ats
co ra x4
x4
rd
the
the
12

13. DEVICE SPLIT BY SALES: 2012
iPad overtook iPhone in Aug 2011 and now dominates
iPad overtook iPhone in Aug 2011 and now dominates
iPhone was double Android sale total despite handset lead
iPhone was double Android sale total despite handset lead
Android closing the gap: 70% of iPhone sale total -- Dec ‘12
Android closing the gap: 70% of iPhone sale total Dec ‘12
13

14. DAILY SALES SPLIT: MOBILE VS.
DESKTOP

15. THE MOBILE BASKET DISSECTED
80-90% OF SALES
80-90% OF SALES
COMING THROUGH
COMING THROUGH
INCENTIVIZED
INCENTIVIZED
TRAFFIC
TRAFFIC
TAKEOU
TAKEOU SIMS
SIMS ENTERTAINMEN
ENTERTAINMEN GROUP BUYING
GROUP BUYING
T
T TT

16. MOBILE: GROUP BUYING SECTOR

17. MOBILE: TELECOMS SECTOR

18. MOBILE: CLOTHING SECTOR

19. TREATING EVERY AFFILIATE DIFFERENTLY
19

20. THE TRACKING THREAT

21. THE TRACKING THREAT
£132k an
£132k
a v eMay 2012 n
In lost commissions in i
e £2mh la n ?
W £2m you p
n (allowing for growth)
Commissions lost o 2012
iin do
c
a £27mt
e
£27m …
c to affiliate marketing
Revenue p la
unattributed

22. MISSED OPPORTUNITIES?
“Probably…
My other app based
on Dutch retailer
bol.com, saw
DevMobile
DevMobile conversion
increase from 8 to
12%:
a 50% increase in
sales.”

23. THE CASHBACK DILEMMA
Hugely successful affiliates
Burgeoning multi-billion dollar sector
Often deliver great quality customers
Creating powerful retail brands
Offer range of promotional opportunities
Focused on demonstrating incremental sales
Multi-channel: apps & mobile sites launched

24. THE CASHBACK DILEMMA

25. THE AFFILIATE COUPON LANDSCAPE
GEO LOCATION
GEO LOCATION
M-COMMERCE
M-COMMERCE 99%> SALES
99%> SALES
CHALLENGES
CHALLENGES
APPLICATIONS
APPLICATIONS
SETTING
SETTING
IN STORE
IN STORE OFFLINE OR
OFFLINE OR COMMERCIAL
COMMERCIAL
TRAINING
TRAINING ONLINE
ONLINE SS
QR CODES
QR CODES SALE?
SALE?
JOINED UP
JOINED UP LOCAL BUSINESS
LOCAL BUSINESS
TRACKING &
TRACKING & OPPORTUNITIES
OPPORTUNITIES
SMS
SMS REPORTING
REPORTING

26. AFFILIATE COUPON INSIGHTS
• High traffic, fewer sales
• Female, high earners
• iPhone/Android neck and neck
• Increase footfall & AOV
• Connection speed issues
• What impact will NFC have?
• Strong offer: wider geo reach

27. CASE STUDY: JOINING ONLINE AND OFFLINE
• Exclusive 10% off via
affiliate coupon app
• Redeemed at point of
sale in store
• Tracked to
Debenhams’ database
• Attributed to affiliate
channel
• Affiliates credited with
commission
27

28. CASE STUDY - DEBENHAMS
UTILISING WINNER
DRIVING MOBILE GEO-BASED OF INNOVATION
TO IN-STORE VOUCHER IN AFFILIATE
CODES MARKETING
28

29. MULTI/OMNI CHANNEL AFFILIATES
MOBILE
MOBILE
SMS
SMS APP
APP DESKTOP
DESKTOP TENANCY
TENANCY
SITE
SITE
ONLINE TO
ONLINE TO
EMAIL
EMAIL
OFFLINE
OFFLINE
ALIGNING BUSINESS GOALS HAS NEVER
ALIGNING BUSINESS GOALS HAS NEVER
BEEN MORE IMPORTANT
BEEN MORE IMPORTANT

30. REPORTING REQUIREMENTS HEIGHTENED
Know what you’re measuring
Know what you’re measuring
Challenge your network
Challenge your network
Who is doing well for you?
Who is doing well for you?
Time for a separate mobile
Time for a separate mobile
approach?
approach?

31. THE NEW DAWN OF MOBILE
• Affiliates are becoming multi-channel:
– Understand the range of activity
• Incremental sales or minimising lost traffic?
• Reporting requirements heightened
• Tracking is a serious threat!
• Prioritise, test and optimise
• Separate out your mobile affiliate traffic
• Who knows how big mobile could be…?

32. M-Commerce in
M-Commerce in
Affiliate Marketing:
Affiliate Marketing:
The Complete
The Complete
Picture
Picture
@Awin_Strategy
@Awin_Strategy
Kevin Edwards, Affiliate Window
Kevin Edwards, Affiliate Window
kevin.edwards@affiliatewindow.com
kevin.edwards@affiliatewindow.com
strategy@affiliatewindow.com
strategy@affiliatewindow.com