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Setting Quality Standard in Affiliate Marketing
1. Setting Quality Standards in Affiliate Marketing William Martin-Gill, Director, eBay US Affiliate Marketing Chris Howard, Senior Manager, eBay EU Affiliate Marketing
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4. Quality is becoming a focus for advertisers, networks and publishers “ during the 3 months ended Mar 31, 2008, we terminated relationships with certain Google Network members who did not comply with our AdSense policies … these steps include[d] … terminating Google network members whose web sites do not meet our quality requirements” Source: Google 1Q 08 10-Q “ We believe Yahoo!’s affiliate business is likely to deliver relatively flat Y/Y top-line growth over the near term as Yahoo continues cleansing its affiliates by focusing on quality…” Source: Lehman Brothers, Anmuth’s Internet Inside, early 2008
5. Quality is becoming a focus for advertisers, networks and publishers Advertisers cited inventory quality as the top ad network differentiator in 2008 Source: ThinkEquity Partners, Collective Media 2008 Ad Network Study 52% of pay per lead merchants cited quality-related issues as their biggest affiliate marketing challenges. Source: Shawn Collins, AffStat 2008 Report
6. Quality is core to eBay Partner Network Network Quality High value traffic to advertisers Rich commissions to publishers
7. What is quality? Legitimate traffic Incrementality of sales Lifetime value of customers Was the sale or the new user lead legitimate and within our T&Cs or was it fraudulently generated? Would this sale have happened anyway without the efforts of the affiliate? Are the new users as or more valuable than what the merchant is paying to acquire them?
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11. What is quality? Legitimate traffic Incrementality of sales Lifetime value of customers Was the sale or the new user lead legitimate and within our T&C’s or was it fraudulently generated? Would this sale have happened anyway without the efforts of the affiliate? Are the new users as or more valuable than what the merchant is paying to acquire them?
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14. Small affiliates can be your best affiliates Yet how many programmes reward small affiliates with higher-than-average payouts? Revenue per click for different sizes of affiliates in eBay Partner Network (Data for October 2008)
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17. What is quality? Legitimate traffic Incrementality of sales Lifetime value of customers Was the sale or the new user lead legitimate and within our T&C’s or was it fraudulently generated? Would this sale have happened anyway without the efforts of the affiliate? Are the new users as or more valuable than what the merchant is paying to acquire them?
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19. Average value of leads can vary significantly by affiliate Value Index Value of Active Confirmed Registered Users Class of Mar 2008 Not compensating the best affiliates for traffic they bring Rank-ordered affiliates Programme Average Large numbers of affiliates driving below-average ACRUs
20. Quantity and quality not always correlated Value of Active Confirmed Registered Users Recent class of users Size (Number of ACRUs per affiliate) Value Index Need to supplement volume-based tiers with factors to reward for quality
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28. Questions and Answers William Martin-Gill, Director, eBay US Affiliate Marketing Chris Howard, Senior Manager, eBay EU Affiliate Marketing