Matt Bailey, Head of Affiliate at i-level, presents on "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. What are we going to talk about? Context – Why are we asking this question? Looking past the last click More than a single channel Are all sales the same? Maximising your campaign effectiveness

4. Who Am I? Head of Affiliate at i-level Chair of IAB’s Affiliate Marketing Council Passionate advocate of performance marketing

5. Uncertain Climate Unprecedented Times

6. How online is doing Economy shrank 2.9% in Q1 2009 Unemployment up by 29% in the last year 17p in every £ spent online 50% spent online by 2014 Sources: ONS (April 09), National Staistics, IMRG CapGemini e-Retail Sales Index

7. Performance Marketing in a Recession Low risk marketing channel Paying after the money is in the till Scaleable LET’S NOT WASTE A GOOD RECESSION

8. SCRUTINY

9. What clients want... Lower cost per sale More sales Incremental sales Better sales

10. Looking past the last click

12. Sale Sale The last event Event type Display Impression Display Click Paid Search Natural Search Affiliates Last Exposure

13. Sales journeys are complex Event type E5 Display Impression Display Click E4 Paid Search Natural Search Affiliates E3 E2 E1 Conversion Event Sale

14. Evidence for both incremental sales and interception 2. Other->Affiliate Journeys (-) 1. Affiliate–only 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 Last Click Sales 80 sales Affiliate Only 30 Affiliate to other 20 Other to affiliate 90 sales True Value

18. More than a single channel

19. PPC Brand Price Comparison Voucher Code Loyalty/ Cashback New Technologies High Traffic/ Portal True Content Email

20. Affiliate types interact in different ways Event type Paid Search Content Price Comparison Incentive Voucher Other Share of journey events Transaction 01 Jan 09 – 04 Mar 09

21. Breaking out affiliates by category Display Click Paid Search Natural Search Affiliate Content Affiliate Cashback Affiliate Voucher Sale

22. What types of activity feeds sales, by type Display Click Paid Search Natural Search Affiliate Content Affiliate Cashback Affiliate Voucher

23. Clear difference in journey lengths % Sales Number of exposures

24. What does this show? Different affiliates operate in different ways They require specific: Approaches Marketing collateral Remuneration models

25. Are all sales the same?

26. Can you use affiliates to: Make people spend more? Drive new customers? Stay with you longer? Buy sooner?

27. Average basket value

28. New vs Existing Customers Where is the brand loyalty, with you or the affiliate? Would the sale have come to you anyway? Reward affiliates for driving new customers?

29. Lifetime Value Some affiliate models promote switching Do you measure the lifetime value of sales through different channels? Should an affiliate be rewarded for driving better customers?

30. Affiliates convert sales quicker Sale event type Display Click NaturalSearch Paid Search Affiliates

31. Using this information to maximise your campaign effectiveness

32. Looking past the last click Analyse what you are paying affiliates Remember last click isn’t everything

33. Determining the worth 100 sales Last Click Sales 80 sales Affiliate Only 30 Affiliate to other 20 Other to affiliate 90 sales True Value

34. Determining the worth 100 sales Last Click Sales 80 sales Affiliate Only 50 sales Affiliate to other 20 Other to affiliate 50 sales True Value

35. More than a single channel Understand different affiliate types How do they interact with each other? Bespoke approach for each one

36. More than a single channel Can they be used to complement your existing search strategy? Incremental value or cannibalisation? How do we harness them and achieve our aims? PPC Affiliates Cashback and Incentive sites Do they add incremental value or simply cannibalise other channels? What offers should we be pushing and how do we retain control? Voucher Code Sites Email affiliates 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? Emerging Technologies Long Tail Content

37. How can we use affiliates?

39. Price Comparison

40. Product based content sites

41. Brand/Generic PPC

42. Get your brand on front of online shoppers

43. Voucher sites

44. Cashback

46. Strong consumer offers/ voucher codes

47. Securing good placements on the affiliate site

48. Deeplinking to specific products

49. Reducing the customer journey

51. Making people spend more

52. Driving new customers? Can affiliates be incentivised to drive new customers? Pay a bonus for new customers Is it something they can influence? Does it vary for different affiliate types?

53. Driving better customers Do certain affiliates/ affiliate types drive better customers already? Do merchants measure this? Would certain affiliates be better incentivised working on a lifetime rev share model?

54. Aiding conversion Some (content) affiliates are losing sales Instead of paying them more, how can we help them convert? Sale Sale

55. Is Affiliate Marketing Worth It? All marketers are under intense scrutiny Incredible opportunities for us all

56. What you need to demonstrate Affiliates is a key solus channel You treat affiliate types differently You understand what different affiliates are delivering for you. Always be in beta

57. matt.bailey@i-level.com twitter.com/mattb811