M-commerce in Affiliate Marketing – The Complete Picture

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Mobile trends including traffic from individual devices – including tablets, conversion rates, challenges, how incentivization is shaping the channel, how mobile isn’t one channel – it’s multi-channel. Experience level: Intermediate Target audience: Merchant/Advertiser Niche/vertical: Local Kevin Edwards, Strategy Director, Affiliate Window (Twitter @AWin_Strategy)

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M-Commerce in Affiliate Marketing: The Complete Picture

M-Commerce in Affiliate Marketing: The Complete Picture

Kevin Edwards, Affiliate Window kevin.edwards@affiliatewindow.com strategy@affiliatewindow.com

Kevin Edwards, Affiliate Window kevin.edwards@affiliatewindow.com strategy@affiliatewindow.com

@Awin_Strategy @Awin_Strategy

GLOBAL PERFORMANCEMARKETING EXPERTS

PART OF LARGEST GLOBAL PERFORMANCE

NETWORK

ESTABLISHED IN

2000

BESPOKEPORTFOLIO SERVICES

2

TIMES WINNER OFPUBLISHERS’ CHOICEOF NETWORK

TIMES WINNER OFAFFILIATE NETWORKINNOVATION

$2.5bn

1,700MERCHANT

S

The Affiliate Landsca

pe

The Mobile

Landscape

...Phenomenal adoption: can we keep up...?

*Ofcom, Communications Market Report, August 2011

58% of US teenagers have smartphones; faster adoption than any other age group

58% of US teenagers have smartphones; faster adoption than any other age group

55% of US & 62% of UK adults have smartphones, double digit YoY growth

55% of US & 62% of UK adults have smartphones, double digit YoY growth

Different demographics and ages choosing different handsets; marketing impact

Different demographics and ages choosing different handsets; marketing impact

Android is king of the handsets: but who is winning the m- Commerce war?

Android is king of the handsets: but who is winning the m- Commerce war?

The iPhone is aspirational and enjoys high ABC1 concentration

The iPhone is aspirational and enjoys high ABC1 concentration

16-24 prefer Blackberrys (37%) to iPhones (25%) 16-24 prefer Blackberrys (37%) to iPhones (25%)

Our data references over 1.5 clicks...Our data references over 1.5 clicks...

...and nearly 45m sales from 1,400 retailers

...and nearly 45m sales from 1,400 retailers

‘MOBILE’ DEVICES: TABLET AND HANDSET

7

TabletTablet HandsetHandset

Current

c.60/40

sale

split

Current

c.60/40

sale

split

MOBILE TRAFFIC (TABLET AND HANDSET): JAN 2011 – DEC 2012

8

From 2% to 19% in 24

months

From 2% to 19% in 24

months

9

From 2% to 14% in 24

months

From 2% to 14% in 24

months

MOBILE SALES (TABLET AND HANDSET): JAN 2011 – DEC 2012

10

From 1.8% to 11% in 24

months

From 1.8% to 11% in 24

months

MOBILE HANDSET TRAFFIC: JAN 2011 – DEC 2012

11

From 1.5% to 6% in 24

monthsFrom 1.5% to 6% in 24

months

MOBILE HANDSET SALES: JAN 2011 – DEC 2012

THE MOBILE/SALES DICHOTOMY

12

x6x6

x10x10 x7x7

x4x4

All mobile traffic/salesAll mobile

traffic/salesAll handset traffic/salesAll handset traffic/sales

Tablet traffic has

grown exceptionally

strongly and converts

higher than desktop

traffic

Tablet traffic has

grown exceptionally

strongly and converts

higher than desktop

traffic

Handset traffic has

grown strongly but

isn’t converting well:

nearly half the rate of

traffic growth

Handset traffic has

grown strongly but

isn’t converting well:

nearly half the rate of

traffic growth

DEVICE SPLIT BY SALES: 2012

13

iPad overtook iPhone in Aug 2011 and now dominates

iPad overtook iPhone in Aug 2011 and now dominates

iPhone was double Android sale total despite handset lead

iPhone was double Android sale total despite handset lead

Android closing the gap: 70% of iPhone sale total - Dec ‘12

Android closing the gap: 70% of iPhone sale total - Dec ‘12

DAILY SALES SPLIT: MOBILE VS. DESKTOP

TAKEOUT

TAKEOUT

SIMS

SIMS

ENTERTAINMENT

ENTERTAINMENT

GROUP BUYINGGROUP BUYING

80-90% OF SALES COMING

THROUGH INCENTIVIZED

TRAFFIC

80-90% OF SALES COMING

THROUGH INCENTIVIZED

TRAFFIC

THE MOBILE BASKET DISSECTED

MOBILE: GROUP BUYING SECTOR

MOBILE: TELECOMS SECTOR

MOBILE: CLOTHING SECTOR

TREATING EVERY AFFILIATE DIFFERENTLY

19

THE TRACKING THREAT

£132£132kk

£132£132kk

£2m£2m£2m£2m

£27£27mm

£27£27mm

In lost commissions in May 2012

Revenue unattributed to affiliate marketing

Commissions lost in 2012 (allowing for growth)

We have an

action plan in

place… do

you?

We have an

action plan in

place… do

you?

THE TRACKING THREAT

DevMobile

DevMobile

“Probably…

My other app based on Dutch retailer bol.com, saw conversion increase from 8 to 12%:

a 50% increase in sales.”

MISSED OPPORTUNITIES?

THE CASHBACK DILEMMA

Hugely successful affiliates Burgeoning multi-billion dollar sector Often deliver great quality customers Creating powerful retail brands Offer range of promotional opportunities Focused on demonstrating incremental

sales Multi-channel: apps & mobile sites

launched

THE CASHBACK DILEMMA

THE AFFILIATE COUPON LANDSCAPE

QR CODES QR CODES

SMSSMS

GEO LOCATION

GEO LOCATION

APPLICATIONSAPPLICATIONS

M-COMMERCEM-COMMERCE 99%> SALES99%> SALES

CHALLENGESCHALLENGES

IN STORE

TRAINING

IN STORE

TRAINING

SETTING COMMERCI

ALS

SETTING COMMERCI

ALS

OFFLINE OR ONLINE

SALE?

OFFLINE OR ONLINE

SALE?

JOINED UP TRACKING & REPORTING

JOINED UP TRACKING & REPORTING

LOCAL BUSINESS

OPPORTUNITIES

LOCAL BUSINESS

OPPORTUNITIES

• High traffic, fewer sales• Female, high earners• iPhone/Android neck and neck• Increase footfall & AOV • Connection speed issues• What impact will NFC have?• Strong offer: wider geo reach

AFFILIATE COUPON INSIGHTS

CASE STUDY: JOINING ONLINE AND OFFLINE

• Exclusive 10% off via affiliate coupon app• Redeemed at point of sale in store• Tracked to Debenhams’ database• Attributed to affiliate channel• Affiliates credited with commission

27

WINNER OF

INNOVATION IN AFFILIATE MARKETING

UTILISINGGEO-BASED

VOUCHER CODES

DRIVING MOBILE

TO IN-STORE

CASE STUDY - DEBENHAMS

28

MULTI/OMNI CHANNEL AFFILIATES

DESKTOP

DESKTOPAPPAPP

EMAILEMAIL ONLINE TO OFFLINE

ONLINE TO OFFLINE

MOBILE SITE

MOBILE SITE TENANCYTENANCYSMSSMS

ALIGNING BUSINESS GOALS HAS NEVER BEEN MORE IMPORTANTALIGNING BUSINESS GOALS HAS NEVER BEEN MORE IMPORTANT

REPORTING REQUIREMENTS HEIGHTENED

Know what you’re measuring

Know what you’re measuring

Challenge your networkChallenge your network

Who is doing well for you?Who is doing well for you?

Time for a separate mobile approach?

Time for a separate mobile approach?

• Affiliates are becoming multi-channel:– Understand the range of activity

• Incremental sales or minimising lost traffic?

• Reporting requirements heightened• Tracking is a serious threat!• Prioritise, test and optimise• Separate out your mobile affiliate traffic• Who knows how big mobile could be…?

THE NEW DAWN OF MOBILE

M-Commerce in Affiliate Marketing: The Complete Picture

M-Commerce in Affiliate Marketing: The Complete Picture

Kevin Edwards, Affiliate Window kevin.edwards@affiliatewindow.com strategy@affiliatewindow.com

Kevin Edwards, Affiliate Window kevin.edwards@affiliatewindow.com strategy@affiliatewindow.com

@Awin_Strategy @Awin_Strategy

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