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Affiliate marketing is increasingly becoming a very important driver of sales to ecommerce sites. Learn more about how it works from Swati's presentation. Also see global success examples!
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1
HIGH ROI MARKETING
ACQUIRING THE CONNECTED CONSUMER WITH
AFFILIATE MARKETING
SWATI BHARGAVA – CEO & CO-FOUNDER,
CASHKARO.COM
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WHAT IS AFFILIATE MARKETING?
Affiliate marketing is a marketing practice in which a
business (‘Advertiser’) rewards one or more
affiliates (‘Publishers’) for each visitor or customer
brought by the affiliate’s own marketing efforts.
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KEY STAKEHOLDERS
There are 4 different parties that are essential to make an affiliate program succeed:
1. Merchant or advertiser
2. Affiliate Network (e.g. Tyroo, OMG, VCommission etc.)
3. Publisher
4. Customer or the Shopper
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WHY BRANDS LOVE AFFILIATE MARKETING Performance driven: Pay only if affiliate drives a Sale. No fixed cost
Higher ROI compared to other channels Often cheaper than PPC on Google Affiliate marketing kicks in faster than SEO
Affiliates do extensive marketing & provide great brand exposure
Proven concept globally since 20+ years. Pioneered by Amazon since July 1996
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You’ve Seen it – You know it!1. PRICE COMPARISON SITES
These sites provide convenience of price comparison. They get paid commission from sites they direct traffic to
Acquired by Experian
for $485
million
Bought over by ValueClick UK’s #1 Financial Services Comparison
website
Launched in India by Amazon
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2. COUPON / VOUCHER SITES
Feature Coupons to help shoppers save money
Keep all the commission they get paid from brands they send sales to
Coupons.com in the US filed for $100m IPO
Valued at $1 bn.
IPO’ed at $100 mn
Acquired by RetailMeNot
for $40mn
Indian Coupon Code Website
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3. CASHBACK SITES
Give members EXTRA CASHBACK on top of Coupons
Share commission with members as ‘Cashback’
RetailMeNot in the US IPO’ed at $1.4billion, raised $190 million
Valued at $1.4bn, IPO’ed
Biggest UK Cashback websites
India’s No. 1 Cashback & Coupon Website
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4. LOYALTY PROGRAMS
Large brands, airlines set up loyalty programs where you earn points when you shop at any of their listed partners via them
Shoppers collect points and can redeem them for rewards
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4. BLOGGERS’ SITES & CONTENT MARKETING
Placing links on blogs related to their niche Banners in Sidebar Text links in blog post Recommend products, show videos, podcasts to show products
which link directly to ecommerce sites which pay the blogger
Review sites often act as affiliates too
10
5. PPC affiliate marketing (unattached affiliate marketing) Behind the scenes middle man. Show your affiliate links where possible & earn when people click & shop via your link. Includes Search Publishers
6. Email marketing list affiliates
7. Social media affiliates
8. Content & niche market websites, including product review sites
11
KEY ELEMENTS OF AN AFFILIATE PROGRAM Having a programme and commission structure in place to attract
affiliates
Getting enough affiliates to join your programme
Ability to track which affiliate generated a successful sale or lead
Easy to manage the programme and pay the affiliates
Ability to reject sales or leads if they are fraudulent or payment is not received
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a) Use an Affiliate Network Create your own programme on the network Use network’s tracking software Let the network promote and recruit your affiliates Networks manage payments to affiliates
Costs: Fee to join network & commission on Sales
b) Run your own affiliate programme Set-up your own programme Invest in third party tracking software Market and recruit your own affiliates Manage your programme yourself (or recruit an agency)
Costs: Dedicated team to run programme, tracking software investment, best for larger companies
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LARGE AFFILIATE NETWORKS IN INDIA
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Affiliate Marketing drove £14bn Salesto UK retailers in 2013
Advertisers spent £1bn on affiliates, got back £14bn sales. Constitutes 16% of UK ecommerce market
15% year on year uplift
Diverse channel encompassing price comparison, editorial, cashback, voucher codes and loyalty
Spend, revenue, number of affiliates and advertisers all seeing an uplift on last year’s numbers
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Affiliate Marketing in India – used by ALL major e-commerce brands
Brands with own affiliate program:
Brands working via affiliate network:
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Views on the Affiliate Marketing ChannelAs shared with Startup Catalyst, website run by Canaan Partners
“Affiliate marketing is an important channel of digital marketing for Myntra.com. A considerable percentage of the business is driven by affiliate channels that are completely measurable unlike many other marketing channels”
- Ashutosh Lawaniya, Myntra.com
“As sites with better content and value offerings to consumers emerge, the contribution of this channel should see significant growth.”
-Binny Bansal, Flipkart.com