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HIGH ROI MARKETING

ACQUIRING THE CONNECTED CONSUMER WITH

AFFILIATE MARKETING

SWATI BHARGAVA – CEO & CO-FOUNDER,

CASHKARO.COM

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WHAT IS AFFILIATE MARKETING?

Affiliate marketing is a marketing practice in which a

business (‘Advertiser’) rewards one or more

affiliates (‘Publishers’) for each visitor or customer

brought by the affiliate’s own marketing efforts.

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KEY STAKEHOLDERS

There are 4 different parties that are essential to make an affiliate program succeed:

1. Merchant or advertiser

2. Affiliate Network (e.g. Tyroo, OMG, VCommission etc.)

3. Publisher

4. Customer or the Shopper

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WHY BRANDS LOVE AFFILIATE MARKETING Performance driven: Pay only if affiliate drives a Sale. No fixed cost

Higher ROI compared to other channels Often cheaper than PPC on Google Affiliate marketing kicks in faster than SEO

Affiliates do extensive marketing & provide great brand exposure

Proven concept globally since 20+ years. Pioneered by Amazon since July 1996

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You’ve Seen it – You know it!1. PRICE COMPARISON SITES

These sites provide convenience of price comparison. They get paid commission from sites they direct traffic to

Acquired by Experian

for $485

million

Bought over by ValueClick UK’s #1 Financial Services Comparison

website

Launched in India by Amazon

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2. COUPON / VOUCHER SITES

Feature Coupons to help shoppers save money

Keep all the commission they get paid from brands they send sales to

Coupons.com in the US filed for $100m IPO

Valued at $1 bn.

IPO’ed at $100 mn

Acquired by RetailMeNot

for $40mn

Indian Coupon Code Website

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3. CASHBACK SITES

Give members EXTRA CASHBACK on top of Coupons

Share commission with members as ‘Cashback’

RetailMeNot in the US IPO’ed at $1.4billion, raised $190 million

Valued at $1.4bn, IPO’ed

Biggest UK Cashback websites

India’s No. 1 Cashback & Coupon Website

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4. LOYALTY PROGRAMS

Large brands, airlines set up loyalty programs where you earn points when you shop at any of their listed partners via them

Shoppers collect points and can redeem them for rewards

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4. BLOGGERS’ SITES & CONTENT MARKETING

Placing links on blogs related to their niche Banners in Sidebar Text links in blog post Recommend products, show videos, podcasts to show products

which link directly to ecommerce sites which pay the blogger

Review sites often act as affiliates too

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5. PPC affiliate marketing (unattached affiliate marketing) Behind the scenes middle man. Show your affiliate links where possible & earn when people click & shop via your link. Includes Search Publishers

6. Email marketing list affiliates

7. Social media affiliates

8. Content & niche market websites, including product review sites

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KEY ELEMENTS OF AN AFFILIATE PROGRAM Having a programme and commission structure in place to attract

affiliates

Getting enough affiliates to join your programme

Ability to track which affiliate generated a successful sale or lead

Easy to manage the programme and pay the affiliates

Ability to reject sales or leads if they are fraudulent or payment is not received

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a) Use an Affiliate Network Create your own programme on the network Use network’s tracking software Let the network promote and recruit your affiliates Networks manage payments to affiliates

Costs: Fee to join network & commission on Sales

b) Run your own affiliate programme Set-up your own programme Invest in third party tracking software Market and recruit your own affiliates Manage your programme yourself (or recruit an agency)

Costs: Dedicated team to run programme, tracking software investment, best for larger companies

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LARGE AFFILIATE NETWORKS IN INDIA

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Affiliate Marketing drove £14bn Salesto UK retailers in 2013

Advertisers spent £1bn on affiliates, got back £14bn sales. Constitutes 16% of UK ecommerce market

15% year on year uplift

Diverse channel encompassing price comparison, editorial, cashback, voucher codes and loyalty

Spend, revenue, number of affiliates and advertisers all seeing an uplift on last year’s numbers

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Affiliate Marketing in India – used by ALL major e-commerce brands

Brands with own affiliate program:

Brands working via affiliate network:

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Views on the Affiliate Marketing ChannelAs shared with Startup Catalyst, website run by Canaan Partners

“Affiliate marketing is an important channel of digital marketing for Myntra.com. A considerable percentage of the business is driven by affiliate channels that are completely measurable unlike many other marketing channels”

- Ashutosh Lawaniya, Myntra.com

“As sites with better content and value offerings to consumers emerge, the contribution of this channel should see significant growth.”

-Binny Bansal, Flipkart.com