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The top 20 multi-channel retailers in the UK and US know the answer. But most of the top 20 Australian retailers are yet to discover this secret. This high-performance channel is Affiliate Marketing, and with the right strategic approach to affiliate techniques such as comparison, cash-back, coupons and content, retailers can easily achieve one-fifth of their online sales via the affiliate channel. Affiliate marketing has been bubbling under the surface of the Australian ecommerce scene for several years, but the evidence now shows the channel is about to explode. In this session, we will illustrate the best use of affiliate marketing with case studies from local and international retailers. We will explain why the market conditions are right, right now for retailers to get involved. The session will also include vital information such as: the latest proprietary research on the Australian market, how to track offline advertising to online sales through multiple devices, how to future-proof your digital marketing spend via cookie-less tracking, and coupon strategies that increase your average order value. Our real-life examples will have you rushing back to work to implement these strategies in your business and realise an immediate return.
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www.dgm-au.com
Twitter.com/cgarner2000
Affiliate Marketing: Find Out What You Are Missing Out On
Affiliate Marketing: Find Out What You Are Missing Out On
25%
Smallerbrands
Perspective
$10M sales delivered every month
Happy customers
Affiliate marketing can deliver 20% of online sales
the most cost effective channel delivers a ROAS of over $15:$1
Affiliate marketing can deliver sales in All categories
Raise your hand if your company operates an affiliate program
Affiliate Marketing Explained
Affiliate Marketing Explained
Affiliate Marketing Explained
Get inside the head of our customers
Trust
Blog content
More traffic each month than Catch of the Day
10X more sales than Facebook
Australian Women Online
Blog content
Mamamia
40,000 fans on Facebook
Reward Style
USA 3rd largest fashion publisher
Cashback site
Affiliate Categories - Cashback
$266K in sales last month
Loyalty site
Affiliate Categories – Loyalty / Reward
3M members and counting
Coupon site
Affiliate Categories – Coupons
$30M+ sales monthly – part owned by Google
Shopping comparison
Affiliate Categories - Shopping
$115K in sales revenue for our advertisers
Affiliate marketing can deliver 20% of online sales
Market share of the years
$100+M
2 years
Market share of the years
$100+MAffiliate c20%
Loyalty
User ReviewsComparison
Coupons
the most cost effective channel delivers a ROAS of over $15:$1
AUD$13.2B
AUD$116B
12%
the most cost effective channel delivers a ROAS of over $15:$1
the most cost effective channel delivers a ROAS of over $15:$1
SONY ROAS $20:1
Big W ROAS $20:1
Babies Got Style ROAS $12:1
Westfield ROAS $20:1
Affiliate marketing is a “no brainer”
Affiliate marketing can deliver sales in All categories
Validated sales revenue
$-
$500,000.00
$1,000,000.00
$1,500,000.00
$2,000,000.00
$2,500,000.00
Sales Revenue
Brand RBrand QBrand PBrand OBrand NBrand MBrand LBrand KBrand JBrand IBrand HBrand GBrand F
500% YoY Growth in affiliate fashion sales
Brand L (mature advertiser) sales increased through the channel by 250% YoY
28 new customers every minute
$60 of fashion sales every minute
15,000 credit card applications every month
1 pizza sold every two minutes
$50 of electrical appliances every minute
Macro digital marketing Globally
$AU 3.342 Billion an increase of $516Million Market FY2012/13
IAB advertising spend per capita
AUD $228.7 pa AUD $190.1 pa AUD $163.7 pa
Source: IAB USA / UK / Australia PwC 2013 report
AUD $900 pa AUD $2485 pa AUD $1098 pa
Source: 2013 eConsultancy Internet Statistics CompendiumSource: Australian Bureau of Statistics , Wikipedia
Digital consumer spend per capita
Global Advertising ROI
Finally the ROAS
AUD $3.9 AUD $8.00 AUD $6.9
Source: 2013 eConsultancy Internet Statistics CompendiumSource: Australian Bureau of Statistics , Wikipedia
Affiliate ROI
ROAS by channel
Affiliate is 800% more cost effective than Display
Affiliate is 100% more cost effective than Search
Search $10.13 Affiliate $20.00 Display $1.80 Social Media $0.70
Low
High
HighROI
Low
High
HighROI
Affiliate marketing is the foundation of your digital marketing strategy
Strategies
Looking at shifts in consumer behaviour
Consumers Coupons
Coupon searches in Google insights
Coupon growth in AU has risen significantly since GFC
38% of coupon users earn $80K+ per year
22% of individual earn $100K+ per year
More affluent households dominate coupon usage: 38% of “super heavy”users and 41% of “enthusiasts” come from households with incomes greater than $70,000
Affluent Consumers Use More Coupons (USD)
Households with income of $100,000and up were the primary drivers of coupon growth in 2009.
Affluent customers use more coupons
Use coupons on high margin products
Lenovo 15% off when you spent $1200
Results
Coupon AOV was $12XX
Non Coupon AOV was $6XX
Sales increased by2%
Revenue increased 43%
Average Transaction Value for Dell $100M+ sales over 3 years
Coupons deliver higher 30% higher Average transaction value than all other channels for Dell
Coupons Display Banners Email CRM PPC Search$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
ATV for Different Channels
2009 2010 2011 2012
Use “X% off when you spend $Y” where $Y is 50% greater than ATV
Use coupons for up selling
Plan for your coupons to go viral
Ensure your online checkout can reject inactive coupons
Set expiry dates and unique identification to measure redemption
Always include Terms & Conditions for coupon use
dgm exclusive coupon rules
Use coupons on high margin products
Use “X% off when you spend $Y” where $Y is 50% greater than ATV
Use coupons for up selling
Plan for you coupons to go viral
Ensure your online checkout can reject inactive coupons
Set expiry dates and unique identification to measure redemption
Always include Terms & Conditions for coupon use
Don’t use coupons on your volume drivers
Affiliate marketing is the foundation of your digital marketing strategy
Strategies
Affiliate search
Free Gap Analysis
Free Gap Analysis
ROAS by channel
Affiliate is 800% more cost effective than Display
Affiliate is 100% more cost effective than Search
Search $10.13 Affiliate $20.00 Display $1.80 Social Media $0.70
The best advert ALWAYS shows
It doesn’t matter if that advert is written by you, an agency or an affiliate
Maximise traffic
Prevent your brand being hijacked
Cut your costs
Increase margins
Strategies
66% of shoppers will exit a website during their checkout
Shopping Cart Abandonment
Case Study Monsoon
Fully Personalized
Urgent
29.31%
20 Minutes2 x Subject Line
45.75%
Fully Personalized
Urgent
29.31%
20 Minutes2 x Subject Line
45.75%
Case Study Paul Smith
Fully Personalized
Customer Service
27.99%
40 Minutes2 x Subject Line
60.52%
Fully Personalized
Customer Service
27.99%
40 Minutes2 x Subject Line
60.52%
Shopping Cart Abandonment can be implemented for FREE
Traditional Media
Traditional Media
Traditional Media
CAN’T BE MEASURED
Traditional Media
How can you attribute online sales to Offline Ads?
PROBLEM
7.1 million Auto Club members in Australia
Conversion
Last click wins
SOLUTION…
Number of coupon sales per month 501
Value of coupon sales per month $100K
Monthly cost saving $25K
CAN NOW BE MEASURED
CAN NOW BE MEASURED
Affiliate marketing can deliver 20% incremental
Affiliate marketing has the highest ROAS
Use coupons for up selling
Implement Shopping Cart Abandonment on a CPA
Track multiple devices and do not rely on Cookies!
Test affiliate search with Free audits
BRANDED INTRO SLIDE
• Who we are • What we cover• Case studies what
do they cover• Quick snapshot
www.dgm-au.com
Twitter.com/cgarner2000
Strategies
Case Study Westfield
Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13
Westfield
500,000 clicks in 10 months
Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13
Westfield
10,000 sales in 10 months
Affiliate marketing is ALWAYS ON strategy
Strategies
Customer Journey
Conversion
Who decides which channel is last click
Conversion
Last click wins
Universal Tracking
technology
Affiliate Marketing
De Duplication across all channel
Universal Tracking
technology
Affiliate Marketing
Duplication rates across channels > 30%
Case Study Dealsdirect
2,063Duplicate Sales
$16,374Cost Efficiencies
$251,903Duplicate Revenue
27%of sales were not last click
De-Duplication Aug – Oct 2012
The affiliate channel has been instrumental in the decision making purchase
Activity de-duped against all channels apart from organic search
Duplicated Sales / Revenue
De duping based on last click can save 30% in efficiencies
