Create - Day 1 - 17:00 - "Affiliates Are the Lifeblood of the Industry - Why Are We Letting...

AFFILIATES ARE THE LIFEBLOOD OF THE INDUSTRY WHY ARE WE LETTING THEM DOWN?

#backoftheaffiliNET

INTRODUCTION

THE STATE OF THE UK AFFILIATE MARKET

20134,000 Advertisers spending

£1bn across 12,000 affiliates

20144,000 Advertisers spending

£1.1bn across….. 12,000 affiliates

AFFILIATE CATEGORY SPLIT CHANGES 2014

57% OF REVENUE FROM REWARD SITES

Cashback, Loyalty & Reward

Voucher

Email

Price Comparison

Content

Other

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

2014 2013

Source: IAB OPM Study 2013 and 2014

@affilinetUK #backoftheaffiliNET

@affilinetUK #backoftheaffiliNET

THE AFFILIATE SURVEY 2015

AFFILIATE SURVEY PARTICIPANTS 2015

CASHBACK 8.8%

VOUCHER 12.5%

CONTENT 27.5%

SOCIAL/COMMUNITY 5%BLOG 11.3%

PRICE COMPARISON 13.8%

44% OF RESPONDENTS WERE CONTENT BASED AFFILIATES

EMAIL 3.8%

SEARCH 7.5%

OTHER 10%

44% content based

@affilinetUK #backoftheaffiliNET

A POSITIVE OUTLOOK FOR EARNINGSAFFILIATES ARE GENERATING MORE INCOME IN 2015 VS. 2014

55% > 2014

13% = 2014

32% < 2014

“I have just started a business therefore the word broke resonates”

Less than £50 £51- £500 £501-£5,000 £5001 - £10,000 Over £10,000

Monthly Affiliate Earnings

Less than £50 £51- £500 £501-£5,000 £5001 - £10,000 Over £10,000

2015 2014

@affilinetUK #backoftheaffiliNET

WHY ARE AFFILIATES GENERATING MORE INCOME?

MOBILE FOUND A NICHE NETWORKSGOOGLE

@affilinetUK #backoftheaffiliNET

HOW DO AFFILIATES LIKE TO WORK, AND WHO WITH?

@affilinetUK #backoftheaffiliNET

55% NETWORKS

31% NETWORKS AND ADVERTISERS

11% DIRECT WITH ADVERTISERS

3% NONE

0% AGENCIES

BUZZWORD ALERT: BIG DATA

of affiliates felt they had access to enough data to understand the

value of the traffic they send to advertisers.

39%70%

of affiliates believe they influence

more sales than they are given

credit for.56% felt that little is done with or can be done with the data that is

available.

@affilinetUK #backoftheaffiliNET

THE INDUSTRYWHO SUPPORTS SMALL AFFILIATES?

.26%

ADVERTISERS

.35% INDUSTRY.

24%PERFORMANCE

IN

40%NETWORKS

15%IAB

@affilinetUK #backoftheaffiliNET

THE INDUSTRY

OF AFFILIATES FELT POSITIVE ABOUT THE INDUSTRY79%OF AFFILIATES THOUGHT THE INDUSTRY WAS DOOMED0%AFFILIATE ASKED “WHAT IS AFFILIATE MARKETING?”1

@affilinetUK #backoftheaffiliNET

CONCLUSION AND WARNING SIGNS• Earnings and the industry outlook is positive for most affiliates

• We still need to reduce the reliance on a few and increase reach across the many

• Useful and real-time data is lacking

• Networks are popular but we need to do more than the basics to support long tail affiliates

• Advertiser relationships are sought after

• The industry can do more for the smaller affiliates

@affilinetUK #backoftheaffiliNET

SO WHAT? WHY SHOULD WE BOTHER WITH THE LONG TAIL?

NEW AFFILIATE SIGN-UPS70% OF NEW SIGN-UPS TO THE AFFILINET PLATFORM ARE CONTENT AFFILIATES

70%10%

8%

8%

@affilinetUK #backoftheaffiliNET

THERE’S A SHED LOAD OF THEM OUT THEREEVEN FOR NICHE CONTENT…

Sports Websites 19,214

Football Websites 12,298

Premier League 2,789

The Greatest Club in the World

737

0.6m followers4m followers 2.5m followers 0.2m followers

172m Views 110m Views 25m Views 7m Views

@affilinetUK #backoftheaffiliNET

CONSUMERS TRUST BLOGGERS AND CONTENT SITES

1. FAMILY

2. FRIENDS

3. BLOGGERS

4. SOCIAL MEDIA CONNECTIONS

5. COLLEAGUES

9. BRANDS

8. CELEBRITIES

7. RELIGIOUS LEADERS

6. JOURNALISTS

10.POLITICIANS

@affilinetUK #backoftheaffiliNET

ADVERTISER 2:ADVERTISER 1:

THE LONG TAIL IS LONG TERMLOWER VOLUME, BUT BETTER ROI

CPA for short tail affiliates is on average 130% higher than the

long tail

On average long tail affiliates drive 20% higher AOV

Conversion rates on average are half of the short tail

conversion rates

CPA for short tail affiliates is on average 75% higher than the

long tail

On average long tail affiliates drive 5% higher AOV

Conversion rates on average are more than half of the short

tail@affilinetUK #backoftheaffiliNET

BARRIERS TO DRIVING THE LONG TAIL

DATA AND TECHNOLOGY

RECRUITMENT AND ACTIVATION OF AFFILAITES

MONEY AND THE INDUSTRY

@affilinetUK #backoftheaffiliNET

DATA AND TECHNOLOGY

@affilinetUK #backoftheaffiliNET

THAT OLD CHESTNUT- ATTRIBUTION

1 Touch point

2 Touch points

3 Touch points

4 Touch points

5 Touch points

6 Touch points

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Advertiser 3 Advertiser 2 Advertiser 1affilinet DWH data – Jan-Aug 2015

@affilinetUK #backoftheaffiliNET

ADVERTISER 1:

CASHBACKWIN 76%

VOUCHERWIN 47%

PRICE COMPARISON

WIN 60%CONTENTWIN 67%

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

Overwrite Lose Win 1 touchpoint

affilinet DWH data – Jan-Aug 2015

@affilinetUK #backoftheaffiliNET

ADVERTISER 2:

-100%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

Overwrite Lose Win 1 touchpoint

affilinet DWH data – Jan-Aug 2015

CASHBACKWIN 75%

VOUCHERWIN 70%

PRICE COMPARISON

WIN 25%

CONTENTWIN 40%

@affilinetUK #backoftheaffiliNET

ADVERTISER 3:

-100%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

Overwrite Lose Win 1 touchpoint

CASHBACKWIN 88%

VOUCHERWIN 69%

PRICE COMPARISON

WIN 58%

CONTENTWIN 27%

affilinet DWH data – Jan-Aug 2015

@affilinetUK #backoftheaffiliNET

INDUSTRY AND STRATEGY AFFECTS CUSTOMER JOURNEY

76% 47% 60% 67%

75% 70% 25% 40%

88% 69% 58% 27%

CASHBACK VOUCHER PRICE COMPARISON CONTENT

ADVERTISER 1

ADVERTISER 2

ADVERTISER 3

@affilinetUK #backoftheaffiliNET

USING DATA AND INSIGHT FOR ACTIONABLE RESULTS

REAL-TIME AND LIFE TIME VALUE DATA ATTRIBUTION DATA HAS TO BE LOOKED AT ON AN ADVERTISER

LEVELAND DO SOMETHING WITH IT!

MAKE IT USEFUL

@affilinetUK #backoftheaffiliNET

RECRUITMENT AND ACTIVATION OF AFFILIATES

@affilinetUK #backoftheaffiliNET

MEET…RICH, RICK, DAISY ANDMARY-ELLEN

A SHIT HOTpublisher team

@affilinetUK #backoftheaffiliNET

WHAT IS THE ROLE OF A PUBLISHER TEAM?

2015The 90’s

SUPPORT RECRUITMENT

OPTIMISATION

@affilinetUK #backoftheaffiliNET

MONEY AND THE INDUSTRY

@affilinetUK #backoftheaffiliNET

IN 2014 57% OF REVENUE CAME FROM

LOYALTY SITES AND 11% FROM

CONTENT

WHERE DO YOU PUT YOUR RESOURCE?

5 YEARS TIME – SURVIVAL OF THE FITTEST

“The strong survive.”

@affilinetUK #backoftheaffiliNET

THE KEY TO GOOD HEALTH IS A BALANCED DIET

IF YOU DO ONE THING, DO THIS…..

• Advertisers – focus your strategy on recruitment and development of new affiliates

• Networks and Agencies – stop de-valuing our services and racing to the bottom

• Affiliates – keep finding a niche and delivering incremental value

• Everyone – tell the rest of digital how great the affiliate channel is

@affilinetUK #backoftheaffiliNET

THANKS FOR LISTENING…NOW LET’S GRAB A BEER!

#backoftheaffiliNET@affilinetUK@HelenMarie21