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Is Affiliate Marketing Really Worthwhile? Matt Bailey Head of Affiliate i-level
YES ...if it’s managed correctly
What are we going to talk about? ,[object Object],[object Object],[object Object],[object Object],[object Object]
Who Am I? ,[object Object],[object Object],[object Object]
Unprecedented Times Uncertain Climate
How online is doing ,[object Object],[object Object],[object Object],[object Object],Sources: ONS (April 09), National Staistics, IMRG CapGemini e-Retail Sales Index
Performance Marketing in a Recession ,[object Object],[object Object],[object Object],LET’S NOT WASTE A GOOD RECESSION
SCRUTINY
What clients want... ,[object Object],[object Object],[object Object],[object Object]
Looking past the last click
 
The last event Last Exposure Event type Display Impression Display Click Paid Search Natural Search Affiliates Sale Sale
Sales journeys are complex E1  Conversion Event E2 E3 E4 E5 Event type Display Impression Display Click Paid Search Natural Search Affiliates Sale
Evidence for both incremental sales and interception 1. Affiliate–only Journeys (+) 2. Other->Affiliate Journeys (-) 3. Affiliate ->Other Journeys (+) Sale
What you pay for Affiliate Only Other to affiliate Last click sales
True Value Affiliate Only Other to affiliate True value Affiliate to other
Determining the worth 100 sales 80 sales 20 30 90 sales Last Click Sales Affiliate Only Affiliate to other Other to affiliate True Value
More than a single channel
PPC Brand New Technologies  High Traffic/ Portal True Content Price Comparison Voucher Code Loyalty/ Cashback Email
Affiliate types interact in different ways Transaction Share of journey events 01 Jan 09 – 04 Mar 09  Event type Content Price Comparison Incentive Voucher Paid Search Other
Breaking out affiliates by category Display Click Natural Search  Affiliate Voucher Affiliate Content Affiliate Cashback Paid Search  Sale
What types of activity feeds sales, by type Display Click Natural Search  Affiliate Voucher Affiliate Content Affiliate Cashback Paid Search
Clear difference in journey lengths % Sales Number of exposures
What does this show? ,[object Object],[object Object],[object Object],[object Object],[object Object]
Are all sales the same?
[object Object],[object Object],[object Object],[object Object],[object Object]
Average basket value
New vs Existing Customers ,[object Object],[object Object],[object Object]
Lifetime Value ,[object Object],[object Object],[object Object]
Affiliates convert sales quicker Sale event type Display Click Paid Search Affiliates Natural Search
Using this information to maximise your campaign effectiveness
Looking past the last click ,[object Object],[object Object]
Determining the worth 100 sales 80 sales 20 30 90 sales Last Click Sales Affiliate Only Affiliate to other Other to affiliate True Value
Determining the worth 100 sales 80 sales 20 50 sales 50 sales Last Click Sales Affiliate Only Affiliate to other Other to affiliate True Value
More than a single channel ,[object Object],[object Object],[object Object]
More than a single channel PPC Affiliates Cashback and Incentive sites Voucher Code Sites Emerging Technologies Email affiliates Long Tail Content Can they be used to complement your existing search strategy? Do they add incremental value or simply cannibalise other channels? Are you providing them with the right tools to promote you? How do we stay ahead of the curve whilst protecting ourselves at the same time? What offers should we be pushing and how do we retain control? Incremental value or cannibalisation? How do we harness them and achieve our aims?
How can we use affiliates?
Pull ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Push
EPC = CPA & CTR & OSC Pay affiliates more ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Are all sales the same? Plan Execute Test Optimise
Making people spend more
Driving new customers? ,[object Object],[object Object],[object Object],[object Object]
Driving better customers ,[object Object],[object Object],[object Object]
Aiding conversion ,[object Object],[object Object],Sale Sale
Is Affiliate Marketing Worth It? ,[object Object],[object Object]
What you need to demonstrate ,[object Object],[object Object],[object Object],[object Object]
[email_address] twitter.com/mattb811

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Is Affiliate Marketing Really Worthwhile?

  • 1. Is Affiliate Marketing Really Worthwhile? Matt Bailey Head of Affiliate i-level
  • 2. YES ...if it’s managed correctly
  • 3.
  • 4.
  • 6.
  • 7.
  • 9.
  • 10. Looking past the last click
  • 11.  
  • 12. The last event Last Exposure Event type Display Impression Display Click Paid Search Natural Search Affiliates Sale Sale
  • 13. Sales journeys are complex E1 Conversion Event E2 E3 E4 E5 Event type Display Impression Display Click Paid Search Natural Search Affiliates Sale
  • 14. Evidence for both incremental sales and interception 1. Affiliate–only Journeys (+) 2. Other->Affiliate Journeys (-) 3. Affiliate ->Other Journeys (+) Sale
  • 15. What you pay for Affiliate Only Other to affiliate Last click sales
  • 16. True Value Affiliate Only Other to affiliate True value Affiliate to other
  • 17. Determining the worth 100 sales 80 sales 20 30 90 sales Last Click Sales Affiliate Only Affiliate to other Other to affiliate True Value
  • 18. More than a single channel
  • 19. PPC Brand New Technologies High Traffic/ Portal True Content Price Comparison Voucher Code Loyalty/ Cashback Email
  • 20. Affiliate types interact in different ways Transaction Share of journey events 01 Jan 09 – 04 Mar 09 Event type Content Price Comparison Incentive Voucher Paid Search Other
  • 21. Breaking out affiliates by category Display Click Natural Search Affiliate Voucher Affiliate Content Affiliate Cashback Paid Search Sale
  • 22. What types of activity feeds sales, by type Display Click Natural Search Affiliate Voucher Affiliate Content Affiliate Cashback Paid Search
  • 23. Clear difference in journey lengths % Sales Number of exposures
  • 24.
  • 25. Are all sales the same?
  • 26.
  • 28.
  • 29.
  • 30. Affiliates convert sales quicker Sale event type Display Click Paid Search Affiliates Natural Search
  • 31. Using this information to maximise your campaign effectiveness
  • 32.
  • 33. Determining the worth 100 sales 80 sales 20 30 90 sales Last Click Sales Affiliate Only Affiliate to other Other to affiliate True Value
  • 34. Determining the worth 100 sales 80 sales 20 50 sales 50 sales Last Click Sales Affiliate Only Affiliate to other Other to affiliate True Value
  • 35.
  • 36. More than a single channel PPC Affiliates Cashback and Incentive sites Voucher Code Sites Emerging Technologies Email affiliates Long Tail Content Can they be used to complement your existing search strategy? Do they add incremental value or simply cannibalise other channels? Are you providing them with the right tools to promote you? How do we stay ahead of the curve whilst protecting ourselves at the same time? What offers should we be pushing and how do we retain control? Incremental value or cannibalisation? How do we harness them and achieve our aims?
  • 37. How can we use affiliates?
  • 38.
  • 39.
  • 40. Are all sales the same? Plan Execute Test Optimise
  • 42.
  • 43.
  • 44.
  • 45.
  • 46.