Create - Day 1 - 14:10 - Affiliate 101 with Dan Lancioni, MediaCom

Affiliate Marketing 101

Daniel LancioniHead of Affiliates

Daniel.Lancioni@Mediacom.com

01Intro to

Affiliates

02Market Size

04A quick take

away

03Key

Developments

01Intro to Affiliates

Affiliate marketing is a

digital channel in which

an advertiser rewards

affiliates on a CPA basis

for their role/contribution

on the advertiser’s site

IABUK.NET

The Affiliate Model

Advertiser, Client or Brand

Affiliate Network

Affiliate or Publisher

Agency

Affiliate Network

Affiliate or Publisher

Affiliate or Publisher

Affiliate or Publisher

Customers

The Affiliate Model

Advertiser, Client or Brand

Affiliate Network

Affiliate or Publisher

Agency

Affiliate Network

Affiliate or Publisher

Affiliate or Publisher

Affiliate or Publisher

Customers

Visit

The Affiliate Model

Advertiser, Client or Brand

Affiliate Network

Affiliate or Publisher

Agency

Affiliate Network

Affiliate or Publisher

Affiliate or Publisher

Affiliate or Publisher

Customers

Click

The Affiliate Model

Advertiser, Client or Brand

Affiliate Network

Affiliate or Publisher

Agency

Affiliate Network

Affiliate or Publisher

Affiliate or Publisher

Affiliate or Publisher

Customers

Click

Track

The Affiliate Model

Advertiser, Client or Brand

Affiliate Network

Affiliate or Publisher

Agency

Affiliate Network

Affiliate or Publisher

Affiliate or Publisher

Affiliate or Publisher

Customers

ClickCookie drop

The Affiliate Model

Advertiser, Client or Brand

Affiliate Network

Affiliate or Publisher

Agency

Affiliate Network

Affiliate or Publisher

Affiliate or Publisher

Affiliate or Publisher

Customers

Sale

The Affiliate Model

Advertiser, Client or Brand

Affiliate Network

Affiliate or Publisher

Agency

Affiliate Network

Affiliate or Publisher

Affiliate or Publisher

Affiliate or Publisher

Customers

Pixel fire Sale

The Affiliate Model

Advertiser, Client or Brand

Affiliate Network

Affiliate or Publisher

Agency

Affiliate Network

Affiliate or Publisher

Affiliate or Publisher

Affiliate or Publisher

Customers

Track

Sale

The Affiliate Model

Advertiser, Client or Brand

Affiliate Network

Affiliate or Publisher

Agency

Affiliate Network

Affiliate or Publisher

Affiliate or Publisher

Affiliate or Publisher

Customers

Reward

The Affiliate Model

Advertiser, Client or Brand

Affiliate Network

Affiliate or Publisher

Agency

Affiliate Network

Affiliate or Publisher

Affiliate or Publisher

Affiliate or Publisher

Customers

Sale

Click

Lo

wH

igh

Low High

Risk

Sales

Cost per mile (CPM) Cost per click (CPC)

Cost per lead (CPL) Cost per action (CPA)

Payment Models

02

Market Size

Advertisers running

affiliate programmes in

the UK

Return on every £1

spent through affiliate

marketing

Spend in the channel,

up 8% YoY

Revenue generated

for advertisers, up

14% YoY

Affiliates working on

UK affiliate

programmes

Transactions made

4,000 £1.1bn 12,000

£15 £16.5bn 155m

2014 OPM study

Source: IAB/PWC OPM study 2014

Source: Deloitte

2014 OPM study

38%

25%

16%

11%

10%

% of spend

Cashback Price Comparison Voucher Content Other

79% are

savvy

shoppers

03

Key Developments

Source: Deloitte

73%

52%

16%

76%

62%

36%

75%

70%

50%

79%

76%

60%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Laptop Smartphone Tablet

UK device penetration

2012 2013 2014 2015

Cross device tracking and attribution

Customer profiles built for

cross device tracking and

targeting purposes

Cross device transactions

tracked since March 2015

Revenue tracked via cross

device tracking since March

2015

Average % of total sales for an

affiliate programme, tracked

through cross devices

6.9

million

57,000

£4.2

million

6%

Source: Affiliate window

Cross device tracking and

attribution

Online to offline

How can

we close

the online

to offline

loop? 79%

79%

76%

60%

?

Source: Deloitte and IAB

Source: IAB O2O Greenpaper

Online to offline survey

100%

Is tracking O2O traffic important?

Yes No Don't know

32%

60%

8%

Do you have a 2015 strategy to track O2O?

Yes No Don't know

24%

8%

48%

20%

Who will pay for O2O?

Online In-store Other Don't know

Card Linking In-store

Voucher

04A quick take away

Data and analytics

Percentage wanting to improve skill

SEO

Percentage wanting to improve skill

Digital strategy

Percentage wanting to improve skill

Mobile

Percentage wanting to improve skill

Affiliates

Percentage wanting to improve skill

Source: Smart Insights

A quick take away

40% 39% 37% 36% 36%

“Affiliate marketing is the most demanded

skill amongst Digital Marketers”Mark Jones, PerformanceIn

Thanks and

enjoy the conference

Online to Offline

Study

Simon BirdGeneral Manager, Savoo

sbird@savoo.com

Daniel LancioniHead of Affiliates

Daniel.Lancioni@Mediacom.c

om