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When Search & Affiliate Marketing Collide 7/14/2011 Peter Figueredo Founding Partner, Netx Email  peter@Netx.com  Twitter @figueredo #OMSBOS
Overview What is Search Marketing? What is Affiliate Marketing? Who the hell is Netx? What happens when they collide? What happens when they cooperate?  Recipe for success
Affiliate & Search consistently rank among the top ROI marketing channels 2010 Affiliate Benchmarks Study
What is Search Marketing?
What is Search Marketing? Seriously?
What is Affiliate Marketing?
Forrester 2009
More than 20,000 brands have affiliate programs
While hard to read  affiliate marketing is prevalent in most industries  2010 Affiliate Benchmarks Study
US affiliate revenue: larger than video, social & mobile combined Forrester 2009
Where do Affiliate & Search meet? Successful affiliates are buying search traffic 2010 Affiliate Benchmarks Study
Who the hell is Netx?
NYC digital ad agency Founded 2001  Inc500|5000 winner 30smart & friendly folks Search &Affiliate Marketing Specialists Great clients ,[object Object]
Financial Times
Conde Nast
Audible(Amazon)
MTV Networks4/6/2011 13 Netx
What happens when they collide? Affiliate
Search & Affiliate Collision Higher customer acquisition costs due to competitive bidding on keywords and affiliate commissions Confusing customer experience on brand terms Ultimately collisions waste resources.
What happens when they cooperate?
Search & Affiliate Cooperation Increased share of voice in search results Competitive blocking Increased traffic and conversions 1 + 1 = 3+
Search Without Affiliate
Search With Affiliate
Search & Affiliate Peanut Butter Cup Recipe
Direct Linking The only time you should let affiliates direct link is when you have no search marketing campaign of your own.
Brand Terms If any other companies are buying your brand terms then allow affiliates to buy them…if not then don’t. It is okay to place bidding caps on brand terms but not too low or your competitors will take top spots.  ***Work with a small trusted group of affiliates if you allow this.
Bidding Rules Do not place bid caps on affiliates for any terms other than your brand.
Competitors Bidding on competitors terms is okay for affiliates as long as they don’t mislead the customer.  Your ads should not be confused with ads for the competitor.
Coupons Make sure you have your own special offers page then PPC and SEO the hell out of it. Borrow a page from the affiliates playbook and capture more customers directly.
Post The Rules Make sure you clearly write out how affiliates can and cannot use search marketing to promote you. Post guidelines everywhere.
Advertisers approach search arbitrage in different ways 2010 Affiliate Benchmarks Study

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When Search & Affiliate Collides

  • 1. When Search & Affiliate Marketing Collide 7/14/2011 Peter Figueredo Founding Partner, Netx Email peter@Netx.com Twitter @figueredo #OMSBOS
  • 2. Overview What is Search Marketing? What is Affiliate Marketing? Who the hell is Netx? What happens when they collide? What happens when they cooperate? Recipe for success
  • 3. Affiliate & Search consistently rank among the top ROI marketing channels 2010 Affiliate Benchmarks Study
  • 4. What is Search Marketing?
  • 5. What is Search Marketing? Seriously?
  • 6. What is Affiliate Marketing?
  • 8. More than 20,000 brands have affiliate programs
  • 9. While hard to read  affiliate marketing is prevalent in most industries 2010 Affiliate Benchmarks Study
  • 10. US affiliate revenue: larger than video, social & mobile combined Forrester 2009
  • 11. Where do Affiliate & Search meet? Successful affiliates are buying search traffic 2010 Affiliate Benchmarks Study
  • 12. Who the hell is Netx?
  • 13.
  • 18. What happens when they collide? Affiliate
  • 19. Search & Affiliate Collision Higher customer acquisition costs due to competitive bidding on keywords and affiliate commissions Confusing customer experience on brand terms Ultimately collisions waste resources.
  • 20. What happens when they cooperate?
  • 21. Search & Affiliate Cooperation Increased share of voice in search results Competitive blocking Increased traffic and conversions 1 + 1 = 3+
  • 24. Search & Affiliate Peanut Butter Cup Recipe
  • 25. Direct Linking The only time you should let affiliates direct link is when you have no search marketing campaign of your own.
  • 26. Brand Terms If any other companies are buying your brand terms then allow affiliates to buy them…if not then don’t. It is okay to place bidding caps on brand terms but not too low or your competitors will take top spots. ***Work with a small trusted group of affiliates if you allow this.
  • 27. Bidding Rules Do not place bid caps on affiliates for any terms other than your brand.
  • 28. Competitors Bidding on competitors terms is okay for affiliates as long as they don’t mislead the customer. Your ads should not be confused with ads for the competitor.
  • 29. Coupons Make sure you have your own special offers page then PPC and SEO the hell out of it. Borrow a page from the affiliates playbook and capture more customers directly.
  • 30.
  • 31. Post The Rules Make sure you clearly write out how affiliates can and cannot use search marketing to promote you. Post guidelines everywhere.
  • 32. Advertisers approach search arbitrage in different ways 2010 Affiliate Benchmarks Study
  • 33. Monitor License a tool to monitor your critical keywords to gather intelligence and police affiliates. We use TheSearchMonitor.com but others exist. Test it out for free with code: PeterOms *not an affiliate link, I promise
  • 34. Search + Vertical If you have an affiliate who can build out vertical websites around your category and is an expert in PPC and SEO then you have found the Holy Grail!
  • 35.
  • 36. Thank You Peter Figueredo Founding Partner, Netx peter@Netx.com 212.981.2700 x200 @figueredo

Editor's Notes

  1. We are talking about PPCsearch and SEO
  2. 73% of all affiliates surveyed SEO their siteMany times affiliates can out rank advertisers in natural listings because they are better at SEO
  3. We manage multi million dollar search and affiliate media budgets for leading advertisers We have been doing this for over 10 years
  4. Trivia Question:Can you tell me what is in this Google Logo? CERN Large Hadron Collider in Geneva SwitzerlandDa Vinci Code fans might know it from the Angels & Demons Novel
  5. 2 of 14 spots belong to audible14% share of voice on this search results page
  6. 8 out of 14 spots belong to AudibleEquates to a 57% share of voice on this search results pageThis is a significant increase over 14%
  7. Google will only allow one direct link to appear in search results so don’t make it an us vs. them scenario with your affiliatesAffiliates should send traffic to their own site and promote you there
  8. Smart Affiliates will understand that Bidding on Brand terms is a privilege not a riteVertive.com is an example of a trusted search affiliateTrusted affiliates on brand terms could also test out different consumer offers for you
  9. I was an expert witness on the Lens.com casehttp://www.sitepronews.com/2011/04/11/web-marketers-are-you-liable-for-your-affiliates-trademark-infringement-with-keyword-ads/
  10. Affiliate agreementProgram info page and docsWelcome email
  11. Make sure your tool pulls data from different geographical locations as shady affiliates might try to geo target around you
  12. These types of affiliates can generate 10 – 30% of the program’s volume each.There are not many so they are kept a secret usually…they also don’t have time to work with hundreds of advertisersTrivia Question: Can you guess where this picture is from? Monty Python’s Holy Grail