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What would happen to an advertiser’s online sales if it were to close its affiliate programme tomorrow?This hypothetical scenario often foreshadows questions about the incremental value of affiliate marketing. If sales remained the same but were referred through other channels, what did affiliates add in the multi-channel mix? Would their sales have been made anyway?
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If more were less: How Incremental are Affiliate Sales?
If more were less: How Incremental are Affiliate Sales?
@Affwin_Strategy @Affwin_Strategy
[email protected] [email protected]
Kevin EdwardsStrategy Director
Matt SwanClient Strategist
What is ‘Incremental’?
1. Cashback
2. Voucher Codes
3. Behavioural Re-Targeting
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What is Incremental?
3
AFFILIATES
DISPLAY
SEARCH
SOCIAL
4Milano | 29.03.2012. | Owen Hewitson, Client Strategist, zanox | If More Were Less: Ensuring Your Affiliate Sales Are Truly Incremental
If affiliates were removed a portion of total online marketing sales should be lost
What is Incremental?
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But what if Affiliates were removed and no sales were lost?
What is Incremental?
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What is Incremental? Average Order Value
Upselling
Volume
Profitability
Frequency
Demographics
New vs. Existing
Churn
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De-duplication is not an attribution strategy!
Cross-channel reporting is vital to understanding incrementality
What is Incremental?
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How many channels are Affiliates de-duplicated against?
What is Incremental?
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What channels are de-duplicated against?
What is Incremental?
Cashback
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Are Cashback customers low earners who will not shop without rewards?
Milano | 29.03.2012. | Owen Hewitson, Client Strategist, zanox | If More Were Less: Ensuring Your Affiliate Sales Are Truly Incremental
\\
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Are Cashback members existing customers already?
Cashback
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Do cashback sites discourage loyalty to advertisers’ brands?
Cashback
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Hugely successful affiliate
Burgeoning sector worth c.£1bn
Over indexes on many customer quality indices
Created powerful retail brand (top 50 UK Hitwise retail sites)
Offers range of promotional opportunities
Focused on demonstrating incremental sales
Multi-channel – 2011 mobile app launched
Instore redemptions, check ins, onsite promotions
Cashback
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Do cashback sites misrepresent advertisers’ brands?
Circulation: 950,000 p/w Cost: £10,500/ €12.000Circulation: 950,000 p/w Cost: £10,500/ €12.000
Cashback
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Do cashback sites misrepresent advertisers’ brands?
Page Views: 800K p/w Cost: £1000/€1.200/WEEKPage Views: 800K p/w Cost: £1000/€1.200/WEEK
Cashback
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For one cashback site, 73% of sales involved no other affiliate... ... And no other channel!
Cashback
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• 31% of affiliate sales involved only affiliates• 92% of affiliate sales involved only one touchpoint• Affiliates lose out on 7% of sales but are assisted 19% of the time
• 31% of affiliate sales involved only affiliates• 92% of affiliate sales involved only one touchpoint• Affiliates lose out on 7% of sales but are assisted 19% of the time
Cashback
1.Voucher code sites are not just for
voucher codes
2.Voucher codes are not just for Voucher
code sites
3.The type of code is key in encouraging
incremental sales
18Milano | 29.03.2012. | Owen Hewitson, Client Strategist, zanox | If More Were Less: Ensuring Your Affiliate Sales Are Truly Incremental
Voucher Codes
1. Free delivery codes
2. ‘Quick Expire’ Codes
3. Site abandonment codes
4. Stretch-and-save codes
5. Codes for customer types
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Voucher Codes
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Guarding exclusivity by tracking the voucher code used
Voucher Codes
Code box either hidden or displayed based on referring URL
Deal ID has to be combined with affiliate ID
Discounted price already applied on site
Voucher Codes: Case Study
Greater control over authorised use of codes
Reduces abandonment when user sees voucher code box
Fairer to affiliates as cookies not overwritten
Codes can be offered to non-code sites from the Long Tail
Voucher Codes: Case Study
1. Where are the ads appearing?
2. Which sales are post-click and which are post-view?
3. Are ads above the fold?
4. Are ads frequency-capped?
5. How long is the time between site abandonment and re- targeting?
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Behavioural Retargeting
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New customers by affiliate
Behavioural Retargeting: Case Study
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Behavioural Retargeting: Case Study
CROSS-CHANNEL ATTRIBUTION – CLIENT AAFFILIATES CONTRIBUTE TO 57% OF SALES
• 31% of Sales are “truly incremental”• Affiliates lose out on 7% of sales but are “helped” 19% of the time
ATTRIBUTION WITHIN AFFILIATE CHANNEL92% OF AFFILIATES SALES INVOLVED ONLY ONE AFFILIATE
61%
32%
7%
78%
17%
7%5%
50%
36%
14%
Aff Channel
Cashback
CUSTOMER VALUE VARIES BY AFFILIATECAN NOT TREAT TWO AFFILIATES IN HE SAME SECTOR THE SAME
1. Assess incrementality in context of changing consumer habits
2. There is no one measure of incrementality: Look beyond volume to value
3. Look at cross-channel paths to purchase and where value is added – A single attribution model does not work for all partners
4. Demand insight into publishers’ audiences or member bases
5. Not all affiliates with the same method of promotion are the same
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@Affwin_Strategy @Affwin_Strategy
Kevin Edwards, [email protected]
Matt [email protected]
Email us to receive our Incrementality White Paper and to signup to our monthly newsletter: [email protected]
Email us to receive our Incrementality White Paper and to signup to our monthly newsletter: [email protected]
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