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This presentation is from Affiliate Summit West 2014 (January 12-14, 2014 in Las Vegas, NV). Session description: Four top producing affiliate managers dispel the myths and mysteries of program management and show a clear, grounded path to doing it right.
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The Top 5Affiliate Management
Myths DebunkedKaren McMahon, The Affiliate Whisperer
Kim Rowley, Key Internet MarketingKim Salvino, Chateau 20Vanessa Branco, Versa9Amy Ely, Under Armour
Agenda• Introduction• Myth #1: Launching = Instant Revenue• Myth #2: Affiliate Marketing is Risk Free• Myth #3: It Doesn’t Work For Small Businesses• Myth #4: Affiliates Don’t Add Value• Myth #5: I Need Paid Placements Year Round• Questions?
Myth #1: Launching = Instant Revenue
Overview• Manage your expectations
o A look at affiliate program launch statistics• Look at it from the affiliate perspective
o It takes time for affiliates to get startedo Auto-approvals help
• Have a solid affiliate strategy• Keep calm and carry on!• Take time to educate your affiliates
Myth #1: Launching = Instant Revenue
Myth #1: Launching = Instant Revenue
Key Influencer**If your site is not already primed to convert
consumers to buyers, then affiliate traffic will NOT increase your revenue.**
Set Yourself Up For Success• Your product/offer is your responsibility• You must attract & recruit affiliates
Myth #1: Launching = Instant Revenue
Myth #1: Launching = Instant Revenue
Your Product/Offer is Your Responsibility• Quality product/offer, non-gimmicky• Site must instill consumer confidence
o Clear, easy navigationo Crisp product imageso Functional in all browserso No interference (no ads, no pop-ups, no flash heavy ads)
• Ongoing site optimization
Myth #1: Launching = Instant Revenue
Myth #1: Launching = Instant Revenue
You Must Attract & Recruit Affiliates• Supply creative that converts + deep links• Assess your competition• Ensure products appeal to their site audience• Provide accessible and responsive support • Share marketing materials
o Demographics, seasonality information, top sellers, new products
Myth #1: Launching = Instant Revenue
Myth #2: Affiliate Marketing is Risk FreeGaming The System• Some affiliates look for easy money
o Forced clicks, pop ups, etc.• Loyalty & incentive sites can entice customer
fraud
Legal Compliance & Managing Multiple Relationships• Evolving FTC regulations• Managing hundreds of relationships is a challenge
Myth #2: Affiliate Marketing is Risk Free
Myth #2: Affiliate Marketing is Risk FreeProtect Your Program• Manually approve affiliates• Use monitoring tools and run your own tests• Review changes in performance• Stay informed on FTC updates• Leverage all available support
o Call center, network reps, etc.
Myth #2: Affiliate Marketing is Risk Free
Myth #3: It Doesn’t Work For Small
BusinessesA Big Brand Name Isn’t Required For Success• Look at your affiliate program as part of your total
brand marketing strategy• Address poor converting links and banners• Focus your attention• Keep your links fresh• Manage your affiliate program costs
Myth #3: It Doesn’t Work For Small Businesses
Myth #3: It Doesn’t Work For Small
BusinessesQuestions To Ask Yourself• Who are your current affiliates? Who else can you contact?• Does your offer match the affiliate type & their marketing
activities?• Are you providing the proper tools for affiliate success?• When was the last time you contacted your affiliates?
o Do you know who is performing well and who isn’t? o What can you do to help low performers?
• What kind of payouts and incentives are you using to attract & motivate your affiliates?
Myth #3: It Doesn’t Work For Small Businesses
Myth #4: Affiliates Don’t Add Value
Proven Results• Affiliate marketing is a powerful source of new
customer businesso Some merchants in the 50%-70% range for new-to-file
• Attribution studies reinforce that this channel drives incremental value
Myth #4: Affiliates Don’t Add Value
Myth #4: Affiliates Don’t Add Value
Measuring Holistically - AttributionAffiliate marketing affects other channels/affiliates. Some affiliates (not all) are under-rewarded since last-click doesn’t show full funnel…some affiliates are over-rewarded if only focusing on last-click.
Myth #4: Affiliates Don’t Add Value
Myth #4: Affiliates Don’t Add Value
Affiliate (Just Like Every Other) Has Its Own Silo• Search, display, affiliate, video and social are all
ignorant of other contributing channelso Some affiliates introduce (originate) the entire transaction!!!
Myth #4: Affiliates Don’t Add Value
Myth #4: Affiliates Don’t Add Value
Myth #4: Affiliates Don’t Add Value
Understanding How Affiliates Impact Each Other….(Data courtesy C3 Metrics)
• Prior to using C3 Metrics measurements, 52% of last click revenue (and cost) came from top 3 affiliates
(excludes google remarketing)
52%
ZERO
Myth #4: Affiliates Don’t Add Value
• Top 25 affs indexed on attributed value vs. last click• Affiliates driving highest value are in Top 25, not Top
3• Aff #16 delivering more value than #1 paid affiliate
Myth #4: Affiliates Don’t Add Value
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Attribution Index
Myth #4: Affiliates Don’t Add Value
Myth #4: Affiliates Don’t Add Value
Results • Affiliates further down the chain will do well• Affiliates at very top will have comp adjusted• Cash-back affiliates continue to do well b/c they originate
customers • Advertisers will focus on origination + demand generation…
less on last second “jump ins” (focus more on starting rather than finishing)
• In five years, 50% of digital ad dollars will use attribution vs. last click/last view (Gartner)
Myth #5: I Need Paid Placements Year
RoundKey Questions• What are your success metrics? Revenue? Return
on Ad Spend (ROAS)? Impressions/Visits? Branding?
Explore Your Options• Placements are not a requirement to grow
revenueo Test performance with & without placements
• Be selective: choose top performing placements at times when extra visibility is needed
Myth #5: I Need Paid Placements Year Round
Myth #5: I Need Paid Placements Year
RoundCase Study: December 2013• Bookings drop due to seasonality during this
period• Schedule placements to coincide with best sale of
the yearCampaign Statistics• Budget: $37,350• Revenue Driven by Placements: $144,813.72• Return on Ad Spend: 288%
Myth #5: I Need Paid Placements Year Round
Myth #5: I Need Paid Placements Year
RoundMitigate Risk by Allocating Spend For Both
Content & Coupon SitesSpend by Placement Type
Myth #5: I Need Paid Placements Year Round
Myth #5: I Need Paid Placements Year
RoundContent Sites Have Significantly Higher
Return Than Coupon SitesReturn on Ad Spend
Myth #5: I Need Paid Placements Year Round
We Welcome Your Questions!
Questions?
Contact Us
Find Us On TwitterKaren McMahon @Aff_Whisperer
Kim Rowley @kimarketingKim Salvino @kim_salvino
Vanessa Branco @VanBrancAmy Ely @aely