iab performance marketing seminar: july 2011

Understanding the True Value of Affiliate

MarketingHelen Southgate

IntroductionAffiliate Marketing Today

Affiliate Marketing is not just a Sales DriverDevelopment of the channel crosses other disciplines

A Microcosm of OnlineAffiliate spans all areas of online marketing

Affiliate Marketing

The Sales FunnelDevelopment of the affiliate channel has led to affiliates being more than just last click drivers

Attributing Value to AffiliatesHow can you measure the value of affiliates?

Value of Sales by RTMAffiliates proven to drive high average sales value

Aff

ilia

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Sales Value by AffiliateVoucher sites generate highest average sales value

Quality Varies by Individual AffiliateAffiliates in the same sector do not have the same behaviour

Looking beyond new customer acquisitionAffiliates can be leveraged to drive additional value other than at initial acquisition

The Brand Halo AffectAffiliates are proven brand awareness drivers

• Takeover of affiliate website plus partner sites

• 54 direct sales generated whilst 470 have been influenced

• Brand Halo Effect

Brand Vs VolumeBalancing brand fit Vs sales volume

High Number of Sales

Low Number of Sales

Weak Brand Fit Strong Brand Fit

Summary

• The Affiliate Channel is a microcosm of online and therefore more than just a sales channel

• Your KPIs should transfer into your affiliate strategy

• Affiliates within the same sector do not show the same behaviour

• There is growth potential within retention and existing customer strategies – big shift change

• Data is king