IDM Affiliate Marketing Short Course - November 2011
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Short course on Affiliate Marketing presented at the Institute of Direct & Digital Marketing. Includes strategies for technology selection, affiliate recruitment & management, and on-site issues to be addressed when launching a successful programme.
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IDM Affiliate Marketing Short Course - November 2011
- 2. Who Am I? • 10 Years Affiliate Marketing Experience • Eteach.com – Managed affiliate programme – Managed partnership deals • Result Media Limited
- 3. Who Am I? • AffiliateFuture.co.uk – 8 years – Managing Director – Managed key accounts such as Virgin Atlantic, Thomas Cook, EUI, CarphoneWarehouse, Sun Bingo and Scottish Friendly – 280,000 affiliates – Global presence Building a Monster! www.moneybackmonster.com
- 4. Welcome – Who are you? • Company • Position • Affiliate Marketing Experience – Programmes, networks, success • What your looking to get out of today?
- 6. Introduction To Affiliate Marketing Performance Based Advertising ‘You pay for the advertising ONLY when something happens’
- 7. Introduction To Affiliate Marketing There is no risk (in theory!)
- 8. Introduction To Affiliate Marketing Affiliate Merchant Tracking Solution Any source of traffic Publisher Suppliers Paying for an action Advertiser Technology Network Software Solution
- 9. Introduction To Affiliate Marketing
- 10. Introduction To Affiliate Marketing – Affiliate Types • Affiliates Fit into 3 main types – Content Affiliates • People visit due to the content provided by the affiliate – Arbitrage • Buy traffic as you or to landing pages specifically aimed at your or your products – Professional Affiliates • Affiliate links are the content
- 11. Introduction To Affiliate Marketing – Content Websites
- 12. Introduction To Affiliate Marketing – Content Websites
- 13. Introduction To Affiliate Marketing – Content Websites
- 14. Introduction To Affiliate Marketing – Content Websites
- 15. Introduction To Affiliate Marketing – Content Affiliates
- 16. Introduction To Affiliate Marketing – Content Affiliates
- 17. Introduction To Affiliate Marketing – Arbitrage
- 18. Introduction To Affiliate Marketing – Arbitrage
- 19. Introduction To Affiliate Marketing – Professional Affiliates
- 20. Introduction To Affiliate Marketing – Professional Affiliates
- 21. Introduction To Affiliate Marketing – Professional Affiliates
- 22. Introduction To Affiliate Marketing – Professional Affiliates
- 23. Introduction To Affiliate Marketing – Professional Affiliates
- 24. Introduction To Affiliate Marketing – Professional Affiliates
- 25. Introduction To Affiliate Marketing – Professional Affiliates
- 26. Introduction To Affiliate Marketing – Professional Affiliates
- 27. Introduction To Affiliate Marketing – Merchants • New Customer • Customer Retention • Leads • Brand Exposure • Market Mix Weakness – Search Marketing • PPC • Natural Listings Please note that there is no affect on your natural listings in the search engines Profit Objectives
- 28. Introduction To Affiliate Marketing - Merchants • Payments – Cost per click (visitor) – Cost per sale (cost per acquisition) – Cost per lead – Hybrid deals – Tenancy arrangements – Revenue Share • Merchants set the commissions
- 29. Introduction To Affiliate Marketing A balanced affiliate programme should account for 10-20% of online transactions •Brand Traffic – Type in traffic – Search engine •Email Marketing – 3rd party – Newsletters •Search Engine Marketing – Paid listings – Natural listings •Advertising – Banners – Paid Content •Social Media
- 30. Introduction To Affiliate Marketing – Tracking Solutions • Third Party Network • Own tracking solution
- 31. Introduction To Affiliate Marketing Figures ignore lead based programmes, adult industry and gambling sectors Affiliate Marketing accounts for 7% of online business Data Source IMRG, and Econsultancy.com Online Sales Affiliate Sales 2008 £43.8bn £3.82bn 2009 £49.9bn £4bn 2010 £58.8bn £4.6bn 2011 £81bn
- 32. Introduction To Affiliate Marketing Network Turnover Digital Window (Awin/Buy.at) £65m Tradedoubler £58m *includes search revenues Commission Junction Unknown OMG £16.7m AffiliateFuture £15m Webgains £9m Affili.net £4.3m Linkshare £1.8m The largest programmes are not run with networks
- 33. Exercise Why Choose Affiliate Marketing 10.30am-11.15am
- 34. Planning a fully integrated affiliate marketing programme 11.30am-12.15pm
- 35. Planning an Affiliate Programme Conflicts Management & Staff Technology Wild West “Next year we’ll reintroduce affiliate marketing, but as it should be. No silly commissions being paid to grubby little people in grubby studios growing income at our expense, getting in the way of genuine sales” Nick Roberston CEO ASOS 2007 To make affiliate marketing work you must plan it and implement it properly or it will be an expensive lesson.
- 36. Planning an Affiliate Programme Understand your current marketing strategy and plan where they will fit in. • Content Affiliates are generally issue free – Creative – Copy – Thinking out of the box • Shop whitelabels • Exclusive suppliers
- 37. Planning an Affiliate Programme Understand your current marketing strategy and plan where they will fit in. • Arbitrage Affiliates need rules! – What advertising are you doing? – What is the cost and value of your advertising? – Staff cost – salary & training – Can the affiliates do a better job? – Can the affiliates do a better job on part of the campaign? • Ultimately a Google keyword has a value and a cost. How can you maximise this?
- 38. Planning an Affiliate Programme • Compliment your activity
- 39. Planning an Affiliate Programme Understand your current marketing strategy and plan where they will fit in. • Professional Affiliates – The ‘wild west’ and they use your content – Voucher Codes – someone uses your voucher code, you give a discount and pay commission to the affiliate – Feeds – Incentivises – Customising deals
- 40. Planning an Affiliate Programme • Creative • Do you produce internally? • Key size – 468x60 – 120x60 – 120x600 • File Types – Gif – Jpeg – Flash – HTML • Issues – Call to action – No Urls – No Phone Numbers – Seasonality
- 41. Planning an Affiliate Programme • Treat your affiliates like a sales team • Video Interviews with the merchant • Marketing guides that are both merchant and industry specific • Branding guidelines • Examples of offline promotions and advertising • Additional creative resource • Seasonality Charts • Frequently Asked questions
- 42. Planning an Affiliate Programme • Data Data Data • Product Feeds – Product Names – Product Descriptions – Brands – Destination URLS Don’t worry about duplicate content • Pricing Files – Price – RRP – Delivery – VAT • Voucher Code Feeds • Feed Types – XML – CSV – Live – you are responsible for your data being correct
- 43. Planning an Affiliate Programme – Competitors • Already Have Programmes • Commission Structures • Cookie Lengths • Consumer Offers • Incentives • Set-up – Networks/Direct – Do they use an agency • Resources – Affiliate Manager – Regular Communications
- 44. Planning an Affiliate Programme - Affiliates 2 Top Level Groups • Key Affiliates – drive 80-90% of your programme • Long Tail Affiliates • HitWise • Syntrax • Alexa • Google
- 45. Planning an Affiliate Programme
- 46. Planning an Affiliate Programme • Affiliates Will Come To You • Define targets – Who are your key affiliates – Number of affiliates – Traffic – Conversions – Sales – Spend • Define Tracking & Reporting Requirements
- 47. Planning an Affiliate Programme • Reporting Needs – What do you need to report? • Internal KPIs – Weekly/Monthly Reports – Annual budgets – Year on year changes • Early warning system – Budgets – Stock issues • Programme Optimisation/Monitoring – Spotting dropped affiliates – Poor Convertors – New affiliates
- 48. Planning an Affiliate Programme • What if it goes wrong? – Too many sales • Budget • No stock left – Too few sales • Site doesn’t convert • Affiliates wont put up links – Commission too low? – Competitors have better relations • Affiliate take links down
- 49. Planning an Affiliate Programme • What are you paying commissions on? – Including Vat (check your VAT rates) – Including Delivery – Product variations – Valid lead • Are the Affiliates aware – Offer text – Communications • Test Test and Test • It will break • You don’t want to reduce commissions – However short term launch campaign works
- 50. Exercise – The network versus direct affiliate programme 12.05am-1.00pm
- 51. Technology • Links – Cookies – Flash Cookies – Browser cache – Tracking references for affiliate • Cookie Windows – Standard is 30 days • Confirmation Page – Javascript – Image pixels – Pass order details • Reporting Tools – Orders – Validate/Cancel Transactions – Assign commissions – Real-time
- 52. Technology • Reliability – Links must not fail – Links must be ‘quick’ – Browser compatibility – Reporting tools uptime – Cope with significant peaks and troughs • De-duping – Last click wins • Approving/Decline Affiliates – Brand protection • Serving Banners • Providing Products Feeds • Customised Reporting
- 53. How To Choose Solution • Cost – Set-up costs • Hardware – Monthly fees • Hosting Fees – Override • Support – Experience – Company Resources
- 54. How To Choose Solution • Affiliates – Base – How attractive is your brand – Can they trust your solution • Wont sign-up • Slow to test your programme – All reporting requirements • Speed of launch – Setting up technology – Setting up programme
- 55. How To Choose Solution • Risk – Traffic through third party servers – You don’t own the data • Control – Ability to customise the programme
- 56. Network or Self Managed - Networks • There are 25/30 UK networks and growing rapidly • Many networks aren’t profitable Do your Research! • Affiliates won’t work with all networks or directly with you – Talk to them • Can the network handle your reporting needs? • Does the network have the technical infrastructure? • Is the network cost effective? • What are your competitors doing? • Overseas Reach
- 57. Network or Self Managed – Multiple Channels • Running 2 networks or network and direct • Advantages – Larger Reach • Not all affiliates work on all networks • Some networks have own traffic – Improve relations • Affiliates have preferred account managers and networks • Often prefer client contact – Build on lack of company resources • Disadvantages – Cross tracking/Cost of technology – Admin time – Costs
- 58. Network or Self Managed – Multiple Channels • Disadvantages – Cross tracking/Cost of technology • Two commissions against one sale – Admin time • Checking sales • Checking affiliates • Uploading creatives • Checking feeds • Approving affiliates • This can be automated – Costs • Multiple set-up costs • Multiple monthly fees • Cross tracked sales – No longer as profitable for a network • Networks want exclusivity
- 59. Network or Self Managed – Multiple Channels • Disadvantages – Cross tracking/Cost of technology • Two commissions against one sale – Admin time • Checking sales • Checking affiliates • Uploading creatives • Checking feeds • Approving affiliates • This can be automated – Costs • Multiple set-up costs • Multiple monthly fees • Cross tracked sales – No longer as profitable for a network • Networks want exclusivity
- 61. Optimised Programme • Not all affiliates are equal – Different conversion rates – Different basket values – Different volumes based on commissions – More profitable customers • Higher proportion of returning customers • Not all affiliates are good for you – Sales you’d have got already – Picking up sales that other channels would have converted – Having to pay large commissions to get the traffic
- 62. Optimised Programme • The Buying Path – People usually have multiple touch points when buying – Do you know every point each customer touches – Certain website start the booking process – Certain websites finish the booking
- 63. Optimised Programme • Affiliate Marketing works on a last click wins the commission – But would the booking have occurred without the first affiliate. – What happens when you have other channels involved.
- 64. Optimised Programme • The industry is confused – They want to apportion commissions but how…. – You have to pay Google per click and you have to pay tenancy regardless. • Best Practice – Include all your marketing channels and de-dupe to the last click – Don’t include your brand search campaigns – Don’t include your own newsletters. – Watch your bookings closely to ensure affiliates are being rewarded. If the affiliate doesn't’t earn enough they will reduce your exposure or drop you. Move affiliate commissions to ensure they are happy. Some affiliates can increase volumes if you pay them more
- 65. Optimised Programme • Voucher Codes – Paying commissions and provide a discount – Customers who are ready to buy go and find a code (you can track this with an analytics tool) – But would the consumer have actually purchased? – Would they have used another retailer with a code? – Voucher codes are big brands now – MyVouchersCodes.co.uk receive around 6 million visitor a month – Strict programme terms – Ensure you have your own page
- 66. Optimised Programme • Incentive Sites – No margin issue (although savvy shoppers can find a voucher!) – Loosing customers who are ready to buy
- 67. Optimised Programme • Don’t Cull Affiliates – If they are not active they maybe active later • Sites Not Live – Don’t reject them they may not come back – Affiliates are busy, they may never come back – Who is the next facebook? – Some of the smaller affiliates send the best quality customers – Networks don’t always provide full details • Affiliate have multiple sites • Some site are large and not easy find your adverts
- 68. Ready for Launch? Stephen Pratley Shine Marketing
- 69. Who Am I?. • Affiliate since 1996 • Building and marketing ecommerce stores since 2000 • CRM Manager at ipoints until sale to Maximiles in 2006 • Shine Marketing: Marketing optimised ecommerce stores inc affiliate integration
- 70. Launch Checklist - Issues Business Issues • Budgets • Over delivery • Under delivery • Branding Issues • Quality checking affiliates • Poor Conversion rates • Competitors taking action Site Issues • Technical failures • Leakage • Site Changes – Browser bugs – Tracking codes – Data feeds – Secure Checkout • Poor Conversions
- 71. Conversion • Commission – Commission % – Average Value – Conversion – Rejections
- 72. Phone Numbers
- 73. Leakage
- 74. Leakage
- 75. Discount Codes
- 78. Affiliates are businesses. Businesses are people
- 79. Events • A4U Expo – Annual trade event – Organised by A4U Forum • Network managed Events – Often focused on vertical sectors • Run your own event – Show & Tell in store?
- 80. Forums
- 81. Blogs
- 82. Affiliate Extranet • All your affiliate info in one place: • Banners& Creative • Policies • Offers Affiliates will often search for: “[company] affiliate” • Prezzybox good example
- 83. One to one contact is key:
- 84. Planning an Affiliate Programme – Best Practice • Treat Affiliates with respect • Spyware/Adware Free • Ban Pop-Ups • PPC Restrictions • IAB Policies • Affiliate Network Policies
- 86. • PPC • Lead Generation • Breaching terms • Returns
- 87. Useful Resources
- 88. Useful Resource • Forums – www.affiliates4u.co.uk – www.acorndomains.com – www.abestweb.com • Blogs – www.pistol101.co.uk – www.stephenpratley.com – www.internetmarketingblogs.co.uk – www.pfft.co.uk – http://www.onelittleduck.co.uk/ – Network Blogs
- 89. Useful Resource • News – Econsultancy.com – Netimperative.com – Mashable.com – Nma.co.uk • Twitter – @pistol101 – @pistol101/affiliatemarketing
Notas do Editor
- Most networks give affiliate an indication of merchants conversion rates These can be heavily skewed by discount & cashback sites
- Until a sale is made (so they get paid) affiliates will consider site visitors as “their” traffic and will avoid sites where there are opportunities for offline sales to be made
- Leakage means any opportunity to leave your site that they won’t get paid for Advertising 3rd party offers is generally a bad idea, but do you advertise other parts of your business?
- Do al arts of your business attract affiliate commission?
- Discount codes are an enormous part of affiliate marketing at the moment Try to move them to AFTER whenever you have gathered the customer email – use analytics to see if content affiliate cookies are being overwritten
- Your network should offer some background to who is promoting you If it’s not obvious what they are doing, ask.
- The main UK forum is A4U. Most networks have their own sections for you to promote new offers. ABestWeb is the closest US equivalent if you have an international progremms
- Most newtorks will run a blog of latest offers so use them You should also try to create something like this for your own communications with affiliates
- Try to get personal contact details when you can, but be respectful of how each affiliate works A large number of affiliates are still part-time so email / MSN / Skype may be preferred