you pay nothing unless a sale is made
Market Pressures
Google raises the bar in Paid Search with Adwords Quality Score
Search Engines continually improving their organic search algorithms to personalise search results
Maturity and size of the advertising market demands more accountability, quality, performance & ROI
Web users become smarter and more savvy expecting high quality web sites and services
Explosion of social networks and their ability to drive sales through personal recommendations
What if the restaurant gave you 10% of the bill of every friend you recommended it to?
“Affiliate Marketing” – not a new idea.
Nothing New
Good old days
Amazon Associates Program
One of the first online affiliate marketing programs and was launched in 1996.
Pioneers of Affiliate Marketing
Nothing else but PORN
Would you asociate your brand with porn?
Affiliate Marketing in Transition
Affiliate 1.0 >>>>>
Affiliate 2.0
Spam SEO sites High quality sites utilising user generated content and comparison engines
Unauthorised PPC activity Closed groups of approved affiliates providing complimentary PPC with performance targets and accountability.
Free Stuff Sites Cash back and reward sites with long term user bases
Part time affiliates Professional affiliate individuals and companies with dedicated resources
Email Offer Newsletters
CPM Banners
Desktop Widgets & Moblie Phones
Google AdSense
Emmerging Sectors in Europe
FMCG – 17%, Credits – 11%, Travel – 15%, Entertainment & games – 13%, Insurance – 8%, Medical products & beauty – 5%, Cars – 5%, Charity – 3%
“Online Affiliate Marketing” - allows a company to track and measure the exact source of sale & pay the commission to the originator of that sale.
Payment Models
You Need Offers
– Banners
You Need Offers
– Product links
You Need Offers
– Widgets
You need to build a Platform
– Hosting– Managing– Tracking– Reporting– Payments
You need Partners
– Affiliates on Social Networks– Search marketing affiliates– Email marketing affiliates– High traffic websites– Coupon affiliates– Niche content providers– Product review sites
Partners Big & Small
If you can pay $50 for a conversion – why would you care were you got it from?
It can be a website with only 20 users Too small to contact directly
Why partners?
• You need to partner with your affiliates, because you have to come up with price to keep everyone happy.
How to attract best affiliates?
• Compensation plan• Quality is the bottom line• Experiment with forms of advertising
(banners, product links, widgets)• Focus on conversion optimisation
example
Price – 20’000 EURDealers commision – n/aAffiliate commission – 300 EUR
Cost per lead (registration for test drive) 30 EURWebsite converts 5% (1 of 20 will register)Banner clickrate – 0,1% (1 of 1000)Affliate needs 20’000 impressions for 1 lead (registration).CPM price is 1 EUR – dealCPM price is 2 EUR – no deal
The Network – it’s a techology and a relationship connector
Network Benefits
Active affiliate network (recruit & review) Reliable tracking & reporting technology Help setting the right price One payments solution Experienced support Hosting & Creative solutions
Why number of affiliates Matters
December January February March April0
100
200
300
400
500
600
700
Number of Afiiliates on AdMix
Social networks drive sales through personal recommendations – Afiliate 2.0
Affiliates require easy access to products, data and pricing (API’s, web services, feed widgets)
Employ user generated content Merchants need to accept that their
brand/products will be atomised by affiliates. Excellent communication from all parties.
you pay nothing unless a sale is made
Q’s
7/7
If you’d like a copy of this presentation
OR
If you’d like to revolutionise your marketing
email [email protected]
---------------------------------------------