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Technology and Transparency: challenges, insights and innovations in the UK affiliate market Owen Hewitson, Client Strategist, Digital Window George Fletcher, Product Manager, Digital Window

Technology and Transparency: Challenges, Insights and Innovations in the UK Affiliate Market

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Presentation at zanox Expert Day, Berlin, 30th March 2011.

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Page 1: Technology and Transparency: Challenges, Insights and Innovations in the UK Affiliate Market

Technology and Transparency: challenges, insights and innovations in the UK affiliate marketOwen Hewitson, Client Strategist, Digital WindowGeorge Fletcher, Product Manager, Digital Window

Page 2: Technology and Transparency: Challenges, Insights and Innovations in the UK Affiliate Market

Overview of the current state of the UK affiliate marketing industry: vital stats and future trends

Page 3: Technology and Transparency: Challenges, Insights and Innovations in the UK Affiliate Market

Overview of the current state of the UK affiliate marketing industry: vital stats and future trends

Page 4: Technology and Transparency: Challenges, Insights and Innovations in the UK Affiliate Market

Overview of the current state of the UK affiliate marketing industry: vital stats and future trends

Germany€2.67bn

UK€5.3bn

France€1.18bn

Spain€663m

Italy€832m

Netherlands€855m

Source: zanox DE

Page 5: Technology and Transparency: Challenges, Insights and Innovations in the UK Affiliate Market

Content

PPCLoyalty/RewardVoucher codes?

1995

2003

2011

2008

2006

Overview of the current state of the UK affiliate marketing industry: vital stats and future trends

Page 6: Technology and Transparency: Challenges, Insights and Innovations in the UK Affiliate Market

Inside the customer’s path to purchase: why the UK is moving beyond the multi-attribution debate

Page 7: Technology and Transparency: Challenges, Insights and Innovations in the UK Affiliate Market

Price Comparison

PPC

Vouchers/ Content

Loyalty/Cashback

Price comparison and generic paid search likely to be sales initiatorsLoyalty and cashback stand alone

Page 8: Technology and Transparency: Challenges, Insights and Innovations in the UK Affiliate Market

Inside the customer’s path to purchase: why the UK is moving beyond the multi-attribution debate

• Misconception: There are many different affiliates involved in the customer’s path to purchase

• The vast majority of transactions through the affiliate channel have only one referrer

• Misconception: Incentive sites overwrite the cookies of other types of affiliates

• Incentive sites are most likely to overwrite the cookies of other incentive sites

• Misconception: Voucher code sites ‘steal’ the sales of true content sites• Voucher code sites overwrite other voucher code sites far more often than

those of true content sites. Often, true content sites overwrite voucher code sites

Page 9: Technology and Transparency: Challenges, Insights and Innovations in the UK Affiliate Market

Number of referrers - Electricals

Single Referrer Two Referrers Other Referrers0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0 Merchant 1

Merchant 2

Merchant 3

Page 10: Technology and Transparency: Challenges, Insights and Innovations in the UK Affiliate Market

Number of referrers - Gifts

Single Referrer Two Referrers Other Referrers0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0 Merchant 1

Merchant 2

Merchant 3

Page 11: Technology and Transparency: Challenges, Insights and Innovations in the UK Affiliate Market

Number of referrers - Mobiles

Single Referrer Two Referrers Other Referrers0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0 Merchant 1

Merchant 2

Merchant 3

Page 12: Technology and Transparency: Challenges, Insights and Innovations in the UK Affiliate Market

When a fashion advertiser offered an exclusive code to a voucher code publisher

Page 13: Technology and Transparency: Challenges, Insights and Innovations in the UK Affiliate Market

When a health & beauty retailer offered an exclusive code to a cashback publisher

Page 14: Technology and Transparency: Challenges, Insights and Innovations in the UK Affiliate Market

When an electrical retailer ran an exclusive reward promotion with a loyalty site

Page 15: Technology and Transparency: Challenges, Insights and Innovations in the UK Affiliate Market

Inside the customer’s path to purchase: why the UK is moving beyond the multi-attribution debate

1. Impossible to implement with publishers who depend on being recognised as last referrer

2. Looks at clicks rather than activity or value3. How do you apportion the commission?

What are the problems with multi-attribution models?

So how do we fairly recognise and reward publishers for their activity?

Page 16: Technology and Transparency: Challenges, Insights and Innovations in the UK Affiliate Market

Where’s the Value?

Value

Average Order Value

New Customer Acquisition

Contribution in the sales journey

Customer persistency

LatencyRate

Intelligent commission setting

Inside the customer’s path to purchase: why the UK is moving beyond the multi-attribution debate

Page 17: Technology and Transparency: Challenges, Insights and Innovations in the UK Affiliate Market

Inside the customer’s path to purchase: why the UK is moving beyond the multi-attribution debate

Page 18: Technology and Transparency: Challenges, Insights and Innovations in the UK Affiliate Market

Merging technologies and blurring boundaries: how serviceable are existing methods of publisher categorisation?

Page 19: Technology and Transparency: Challenges, Insights and Innovations in the UK Affiliate Market

Merging technologies and blurring boundaries: how serviceable are existing methods of publisher categorisation?

1. They obscure the differences between affiliates, encourages advertisers to ‘stereotype’ publishers

2. But publishers are successful when they incorporate many different promotional methods

3. Influx of new actors into performance channel, with new methods of promoting

4. This contributes to a blurring of the boundaries between different promotional methods

An over-reliance on current models of affiliate categorisation suits neither advertisers nor publishers

Does how networks represent publishers help or hinder relationship building?

Page 20: Technology and Transparency: Challenges, Insights and Innovations in the UK Affiliate Market

Merging technologies and blurring boundaries: how serviceable are existing methods of publisher categorisation?

Page 21: Technology and Transparency: Challenges, Insights and Innovations in the UK Affiliate Market

Merging technologies and blurring boundaries: how serviceable are existing methods of publisher categorisation?

Page 22: Technology and Transparency: Challenges, Insights and Innovations in the UK Affiliate Market

Merging technologies and blurring boundaries: how serviceable are existing methods of publisher categorisation?

Page 23: Technology and Transparency: Challenges, Insights and Innovations in the UK Affiliate Market

Merging technologies and blurring boundaries: how serviceable are existing methods of publisher categorisation?

Page 24: Technology and Transparency: Challenges, Insights and Innovations in the UK Affiliate Market

Creating communities and connections in the UK affiliate marketplace

Page 25: Technology and Transparency: Challenges, Insights and Innovations in the UK Affiliate Market

Creating communities and connections in the UK affiliate marketplace

Page 26: Technology and Transparency: Challenges, Insights and Innovations in the UK Affiliate Market

Creating communities and connections in the UK affiliate marketplace

Page 27: Technology and Transparency: Challenges, Insights and Innovations in the UK Affiliate Market

Creating communities and connections in the UK affiliate marketplace

AWin apps

Page 28: Technology and Transparency: Challenges, Insights and Innovations in the UK Affiliate Market

Creating communities and connections in the UK affiliate marketplace

Page 29: Technology and Transparency: Challenges, Insights and Innovations in the UK Affiliate Market

Creating communities and connections in the UK affiliate marketplace

Page 30: Technology and Transparency: Challenges, Insights and Innovations in the UK Affiliate Market

The importance of building transparency into advertiser-publisher relationships

Page 31: Technology and Transparency: Challenges, Insights and Innovations in the UK Affiliate Market

Advertiser Directory• AWin Index

The importance of building transparency into advertiser-publisher relationships

Page 32: Technology and Transparency: Challenges, Insights and Innovations in the UK Affiliate Market

The importance of building transparency into advertiser-publisher relationships

Advertiser Directory• AWin Index• Refine bys

Page 33: Technology and Transparency: Challenges, Insights and Innovations in the UK Affiliate Market

The importance of building transparency into advertiser-publisher relationships

Advertiser Directory• AWin Index• Refine bys• Detailed View

Page 34: Technology and Transparency: Challenges, Insights and Innovations in the UK Affiliate Market

The importance of building transparency into advertiser-publisher relationships

Advertiser Directory• AWin Index• Refine bys• Detailed View• Membership

Status

Page 35: Technology and Transparency: Challenges, Insights and Innovations in the UK Affiliate Market

The importance of building transparency into advertiser-publisher relationships

Advertiser Profiles• Profile Overview• AWin Index

Page 36: Technology and Transparency: Challenges, Insights and Innovations in the UK Affiliate Market

The importance of building transparency into advertiser-publisher relationships

Advertiser Profiles• Profile Overview• AWin Index • CAVE data

Page 37: Technology and Transparency: Challenges, Insights and Innovations in the UK Affiliate Market

The importance of building transparency into advertiser-publisher relationships

Advertiser Profiles• Profile Overview• AWin Index • CAVE data• IAB Ethical

Merchant Charter

Page 38: Technology and Transparency: Challenges, Insights and Innovations in the UK Affiliate Market

The importance of building transparency into advertiser-publisher relationships

Advertiser Profiles• Profile Overview• AWin Index • CAVE data• IAB Ethical

Merchant Charter

Page 39: Technology and Transparency: Challenges, Insights and Innovations in the UK Affiliate Market

The importance of building transparency into advertiser-publisher relationships

Publisher Directory• Detailed publisher

categorisation

Page 40: Technology and Transparency: Challenges, Insights and Innovations in the UK Affiliate Market

The importance of building transparency into advertiser-publisher relationships

Publisher Directory• Detailed publisher

categorisation• Refine bys

Page 41: Technology and Transparency: Challenges, Insights and Innovations in the UK Affiliate Market

The importance of building transparency into advertiser-publisher relationships

Publisher Directory• Detailed publisher

categorisation• Refine bys• AWin Sector Rank

Page 42: Technology and Transparency: Challenges, Insights and Innovations in the UK Affiliate Market

The importance of building transparency into advertiser-publisher relationships

Publisher Directory• Detailed publisher

categorisation• Refine bys• AWin Sector Rank

Page 43: Technology and Transparency: Challenges, Insights and Innovations in the UK Affiliate Market

The importance of building transparency into advertiser-publisher relationships

Publisher Profiles• Profile Overview

Page 44: Technology and Transparency: Challenges, Insights and Innovations in the UK Affiliate Market

The importance of building transparency into advertiser-publisher relationships

Publisher Profiles• Profile Overview• Promotional details

Page 45: Technology and Transparency: Challenges, Insights and Innovations in the UK Affiliate Market

The importance of building transparency into advertiser-publisher relationships

Publisher Profiles• Profile Overview• Promotional details• Site Verification

Page 46: Technology and Transparency: Challenges, Insights and Innovations in the UK Affiliate Market

The importance of building transparency into advertiser-publisher relationships

Publisher Profiles• Profile Overview• Promotional details• Site Verification• AWin Sector Rank

Page 47: Technology and Transparency: Challenges, Insights and Innovations in the UK Affiliate Market

Towards affinity partnerships: anticipating the challenges of the future

Page 48: Technology and Transparency: Challenges, Insights and Innovations in the UK Affiliate Market

Towards affinity partnerships: anticipating the challenges of the future

• Blurring of boundaries in how publishers promote challenges existing models of categorisation

• All online activity can be brought back to a CPA • Publishers can be used as a branding tool as much as a sales

channel

Publishers are Changing

Page 49: Technology and Transparency: Challenges, Insights and Innovations in the UK Affiliate Market

CPM

BRAND SALES

CPACPC

Display Paid Search Affiliate

Towards affinity partnerships: anticipating the challenges of the future

Page 50: Technology and Transparency: Challenges, Insights and Innovations in the UK Affiliate Market

Towards affinity partnerships: anticipating the challenges of the future

• It’s not just about volume anymore. It’s about value. Advertisers want to know what they are paying for.

• They want their programmes to become less reliant on few affiliates

• “Bring me one new good publisher a week.”

Advertisers are Changing

Page 51: Technology and Transparency: Challenges, Insights and Innovations in the UK Affiliate Market

Towards affinity partnerships: anticipating the challenges of the future

• Network can be more than just platform providers, tracking sales and handling payments

• They can be place that publishers and advertisers go when they want to showcase themselves to each other

Networks Need to Change

Page 52: Technology and Transparency: Challenges, Insights and Innovations in the UK Affiliate Market

Owen Hewitson – Client Strategist, Digital [email protected]

George Fletcher – Product Manager, Digital [email protected]

Thank you