Is Affiliate Marketing Worth It? - AdTech 2009
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Is Affiliate Marketing Worth It?
Matt Bailey – i-levelReed Pridy – NeverblueHelen Southgate - Sky
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16% YOY £4.32
billion£227
millionSources: IMRG CapGemini eRetail Sales Index Sept 09 & eConsultancy Affiliate Marketing Buyers Guide July 09
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Is AFFILIATE MARKETING worth
it?
YES!!!(if managed correctly)
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What will we cover?• What is affiliate marketing?
• The make up of the “affiliate channel”– PPC Affiliates– Voucher code affiliates– Cashback affiliates
• Affiliate Relationships
• Lead Generation in Affiliate Marketing
• Where do affiliates fit into the sales journey?
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Step 1 - Clickthrough
Step 3 - Reward
Step 2 - Sale
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CPAClickSign-up
LeadSale
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Relationships
Merchant Agency Affiliate Network Affiliates
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Affiliate Types
Affiliate Marketing
PPC Content IncentiveVoucher Code Email
Price Comparison
Different methods require bespoke approaches
Pull Push
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Working with PPC Affiliates
Maximize Search Engine Coverage
Increase Brand Awareness
Achieve Direct Response Objectives
Why work with PPC Affiliates?
PPC Affiliate Marketing
IncreasedReach Controls
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Working with PPC AffiliatesFr
eque
ncy
of S
earc
hes
Number of Keywords
Sales
2 words; 30%
3 words; 27%
4 words; 17%
5 words;
8%
6 words; 4%
• Capitalize on the Long Tail• Dial-in consumer targeting
Increased Reach
Search Frequency by # of Keywords
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Working with PPC Affiliates
• Engage PPC Search Affiliates in a controlled environment• Strategic Affiliate Relationships
Controls
Leverage the full breadth of PPC
Marketing – even beyond Search Engines
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Voucher Code Affiliates
What are they?
• Offers for their users• Money off / sale • Create a loyal user base• Incremental channel?
What should you consider?
• Your margins• Offer + CPA = Real CPA
• Control• Strategic Vs Tactical
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Cash Back Affiliates
What are they?
• Use commission to pass to customers
• Anywhere up to 100%• Create a loyal user base• Incremental channel?
What should you consider?
• Your cash back• Loopholes• Tracking value• Brand reputation
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Affiliate Relationships
• Know your affiliates• Understand their model• Partnership• Your field agents
– Motivation– Reward– Respect
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Online Lead Generation Through Affiliate Marketing
CPL
ROI
Re- marketing
Business Model
Synergies
Market Reach
Controls
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Where do Affiliates Fit in?
The Purchase Decision
Affiliates
Display
Paid Search
Natural Search
Social Media
The Online Mix
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The last event is not the whole story
Event type
Display Impression
Display Click
Paid Search
Natural Search
Affiliates
Sale
Conversion Event
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E1
Conversion Event
E2
E3
E4
E5Event type
Display Impression
Display Click
Paid Search
Natural Search
Affiliates
Journeys can be long, complex & take many forms
Sale
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Where do affiliates fit in?
Affiliate Only Affiliate comes in last click
Affiliate plays part in sale but
not last click
Analyse your data and base decisions on facts
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Summary• There is no “affiliate channel”
• There can be risks involved…
• …however, if managed correctly it is an incredibly cost effective way of marketing.
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Matt Bailey
Head of Affiliate, i-level
twitter.com/mattb811
www.mabailey.co.uk
Reed Pridy
Director Compliance and
Quality Assurance
Neverblue.com
Helen Southgate
Senior Online Marketing
Manager, BSkyB
twitter.com/helenmarie21