Think vis sept 2010
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Transcript of Think vis sept 2010
AffiliateMarketing Technologies
Saturday 4th September 2010
Kevin Edwards,Strategy Director, Digital Window
[email protected] 7553 0354
Affiliate Marketing Trends
• Est. £4.62bn in sales in 2010• 12% increase on 2009 figures• c.8% of online sales generated through AM• Est. £275m in fees and commissions• Up from £245m in 2009• AWin projected turnover, £52.1m (2010)• Up 21% on 2009
Affiliate Marketing Trends• PPC activity squeezed:– Merchants tightening T&Cs– Search engine costs rise
• ‘Incentivised’ traffic continues to boom• Affiliate Marketing has gone mainstream• Syndication: ‘sub-affiliates’ emerged• Agencies take on the networks• Third party apps offer rev-share opportunities• Last click model challenged• Regulation increasing professionalism & openness
Affiliate Marketing Trends
• Key shift from PPC to Incentivised traffic• PPC has upheld volume but lost % share• Steady growth in active affiliates• Content > PPC > Reward / Loyalty > Vouchers• Social Media, Mobile, Applications, Widgets,
Plug ins & APIs recognised growth areas
Affiliate Trends: Statistics
• Affiliates driving revenue more than doubled in three years
• Commission from top 10 affs has fluctuated but top 50/100 has steadily diversifiedDate Revenue Driving
AffiliatesTop 10 (%) Top 50 (%) Top 100 (%)
Jun-07 2,627 31.7 66.3 79.1Jun-08 3,501 42.3 66.3 76.8Jun-09 4,737 35.9 62.6 73.6Jun-10 5,758 36 61.7 72.8
Awin’s Top 20 Affiliates
Where do sales come from?• High street electrical retailers
Where do sales come from?• General department store/high street
retailers
• Clothing high street/catalogue
Where do sales come from?
Where do sales come from?
• PRODUCT FEEDS: Electrical, mobile phone
• TEXT LINKS: Dominant, all sectors
• BANNERS: Few sales, all sectors
PPC is no longer Dominant
• PPC is holding its own but % of sales has dropped significantly
• Those who remain are professional and trusted search agency partners
• T&Cs tightened, direct linking curtailed• RFPs are increasingly common, certainly for
bigger brands• Advertisers looking for innovation; new
technology, A/B testing etc.
Artemis8 & Premier Innwww.premierinnhotels.co.uk/
Artemis8 & Premier Inn
PPC Opportunities
• Currently many programmes are very restricted
• Long tail value is always being sought• SME opportunities still exist• Speak to your network • Beware network monitoring tools!• Google changes potential opportunities for
affiliates?
Incentivised Traffic Trends
• Fiercely competitive• Voucher codes and cashback dominated by
handful of sites• White label solutions available • Voucher code sites subject to separate cross-
network regulation
Incentivised Traffic Booms
Incentivised Traffic Booms
• Cashback and loyalty sites are mainstream, represents big competition...
Voucher codes
• Think sites with voucher codes rather than voucher code sites
• Red Letter Days will offer you exclusives based on your content that cannot be used elsewhere:
Protecting your codes
• Display/hide voucher code entry box in the checkout• Enable affiliates to pass in an extra parameter in the
inbound URL called a ‘deal ID’ • Corresponding promotion is applied automatically• Deal IDs are exclusive to individual affiliates• Deals are session-based, providing a powerful call to
action – ‘you must click on this link to get this deal’ & ‘you must start your journey from this site to get this deal’
Red Letter Days – Code Mngment
• A4U Forum• A4U Forum• David Fiske’s blog
Syndication & Sub Affiliation
• Growth of ‘sub networks’• Affiliates building technology making AM
‘foolproof’ and accessible• Cleans product feeds• Trawls millions of products across networks• Offers image, deeplink & html, with tracking• Revenue share between publisher & affiliate
Untapped revenue potential
• Banner ads and sponsored links monetise your ad-space
22
• Untapped potential in your content
- Existing links added by editors/users
- Unlinked product references
Automated vs. DIY
23
Do-It-Yourself
Integrate with Ad Network
Integrate with Ad Network
Install 1 line of code
Install 1 line of code
Apply to advertiser programs
Apply to advertiser programs
Create deep-link syntax
Create deep-link syntax
Hard code into site
Hard code into site
Maintain linksMaintain links
Access multiple reporting interfaces
Access multiple reporting interfaces
Optimize performance
Optimize performance
Skimlinks
Skimlinks
• Tech Crunch• Skimlinks blog• Wordpress plugin
Easy Content Units
• Content units for affiliates• Flexibility with sizes, sectors and merchants• Offers price comparison facility• Revenue share 80:20 split (based on ad
serving)• Range of customisable linking methods
ECU – Price Comparison
ECU – Compare Range
ECU – Video Content
ECU resources
• Easy Content Units• Matt Bailey’s blog• Affiliate Stuff blog• Affiliate Window blog
Other Third Party Applications
• PrismaStar ‘advanced widgets’• Revenue split between provider and affiliate
APIs
• Opening up technology platforms could be significant growth & innovation area:– Jul 2010, TradeDoubler & Tesco announce ‘ARC’– Affiliate Revenue-share Community– Encourages tech/widget/toolset development by
affiliates on revenue share model
Interactive video content
• Interactive video content encourages advertisers to focus on content
Where’s Facebook & Twitter?
• Facebook, Twitter can all be monetised, few companies generate revenue
• What’s important... branding vs. sales?• Mobile offers the next great opportunity,
especially geo-targeted content• ABI Research estimates 60% of consumers will
browse the Internet on their phones by 2015
Selling yourself
• Prepare a crib sheet of your USPs• Ask for unique content (many advertisers
have it yet don’t share it)• Ask for a prize or product to review• Utilise your email database• Ensure you sell yourself well (no one else will!)• Show value, flexibility and creativity
Regulation• IAB, Affiliate Marketing Council (AMC)• Achieved:
– Downloadable Software / Rebate Catchers– Voucher code regulations– Behavioural Retargeting
• Future:– White papers / research– Product Feed best practice– Commission Attribution Cmt.– Best practice guides
• @IAB_AMC, http://www.iabaffiliatemarketing.com/
Other resources
• Common Misconceptions in AM• Understanding Voucher Codes• Understanding Incentivised Traffic• Vouchercodes.co.uk Case Study• IAB Affiliate Marketing Council• AWin’s eConsultancy Posts
AffiliateMarketing Technologies
Saturday 4th September 2010
Kevin Edwards,Strategy Director, Digital Window
[email protected] 7553 0354