Download - Online Retailer Presentation - August 2009
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Affiliate Marketing Online Retailer August 2009
Matt Bateman
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Agenda Agenda
• Affiliate Marketing explained • The Australian Marketplace• Why do you need an affiliate program?• Network vs individual affiliates• Rules for building a successful affiliate marketing
program • Case Studies – success in online retailing
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Let’s start with a definition Let’s start with a definition
• Affiliate Marketing is:
Revenue sharing between online advertisers/merchants and online publishers/salespeople, whereby
compensation is based on performance measures, typically in the form of sales, clicks, registrations, or a hybrid model.
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In the beginning...Amazon Affiliate Program
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Affiliate NetworkAffiliate Network
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Affiliate marketing in AustraliaAffiliate marketing in Australia
CPA
RETAIL/CPS
CPC/CPL
SEARCH – SEO AND PPC
10
10
10
10
Quality
Volume
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Performance Marketing Performance Marketing
• Natural decentralization of Ad Spend online• Increasing number of Ad spend going to Search, Ad
Networks, and Performance/Affiliate • ‘Portal’ strategies now being replaced by:
– Ad Networks (AdConion, Drive PM, 3Di)– Ad Exchanges – Affiliate networks– Diversified Performance strategies
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Affiliate Marketing & online retailers –
foundation principles
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Affiliate Marketing PrinciplesAffiliate Marketing Principles
• Low-risk advertising - pay commission on a sale, rather than the click at a guaranteed % commission rate
• Get access to a range of Web sites for advertising rather than having a number of individual relationships
• Get centralised tracking and management of creative
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Some Basic Rules
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What can you afford to pay to acquire a What can you afford to pay to acquire a
customercustomer? ? • The margin available is absolutely key, and is
different across categories – Travel and Whitgoods can start @2-5% – Online Florists range is from 10-15%
• Factor in lifetime value of a customer and likelihood of repeat business
• Err on the generous side for affiliates
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3Ts and an A3Ts and an A
•Trust •Transparency •Truth•Accountability
Source: Lee Hopkins 2009 – Better Communication Results
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Remember the 4 Ps Remember the 4 Ps
• Price – Test, niche, less than offline
• Place– Where are your customers? - Search, affiliates,
newsletters, social
• Promotion – FREE works– WIN works – Recommendations work– Special offers work – with clients and affiliates
• Product – Make sure you shop yourself, keep developing - UVP
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Is your product right for the affiliate channel? Is your product right for the affiliate channel?
• Does your product suit online sales? • Have you got a reasonable margin, so that you can
pay a commission that will motivate a publisher to run your ads, and feature your products on your site?
• Is it relatively commoditised
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UVP – Unique Value Proposition
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The Amazon UVP has expanded
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Amazon Tools
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Amazon Ctd
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Optimise your site Optimise your site
• Landing pages • Test, Test and Test• Good usability principles• Continue to test• Easy ordering process and follow up • Reviews • Change creative regularly • Datafeeds
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Give Great Customer Service Give Great Customer Service
• There is no reason online customer service shouldn’t match that of bricks and mortar retailers
• With Twitter, IM, IVR and the plain old telephone, there is no excuse not to give good customer service
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Work with genuine partnersWork with genuine partners
• Never work with someone who can’t tell you where the traffic is coming from
• Never use a Search agency who won’t tell you what keywords they’re using
• Get educated • Get references
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Be engagedBe engaged
• Affiliate Marketing is about doing lots of little things right
• It is not easy, but can be very rewarding • You need to be on top of your reports and have a
relationship with your partners • Analytics
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Rules around Search Rules around Search
• Understand what you’re buying in Search • Search is crucially important to any eTailer, but you
need to understand what you’re buying • Does last click win? • Are you optimising properly? • Using Super-affiliates and rule around what they
can search on – closed networks
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Work with Super affiliates
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Dos and Don’ts of working with networks
DON’Ts1. DON’T sign an exclusive
contract – it is advertising, you should have choices
2. DON’T let your search provider run your affiliate program
3. DON’T ‘set and forget’ 4. DON’T work with a
network that isn’t transparent and won’t return calls
DOs1. Do trial different
networks1. But, have clear rules in
place2. DO Have clear metrics in
place – understand what success looks like
3. DO Establish a relationship with super-affiliates
4. DO Work with a transparent network
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Don’t underestimate the power of Don’t underestimate the power of
emailemail• Pareto Principle – don’t always hunt new customers • Relevant email communications work – newletters,
special offers• Test building an external database on a Cost-Per-
Lead basis • Use professional email tools like Campaign Master –
www.campaignmaster.com.au • Any money spent will be a huge saving downstream
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The power of email The power of email
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What does an affiliate publisher look like?
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A comment on E-Commerce in Australia
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A comment on E-Commerce in AustraliaA comment on E-Commerce in Australia
• Where are the major retailers online?
• How do we get them to engage online?
• The Avis model...
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New revenue streams – Facebook Advertising as a New revenue streams – Facebook Advertising as a
traffic driver traffic driver
• 200 apps In 1 weekend• 18 Apps for
platinum cards in one week
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CASE STUDIES
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Strawberrynet – Sales Campaign
Objective – To drive sales of women’s cosmetics and men’s grooming products
Delivery Channel – Combination of targeted eDM, banner placement and search, through selected affiliates within the Viva9 network.
Affiliates were paid on a Commission basis based on sales.
Results – Achieved in excess of $1 million in sales on a monthly basis
Campaign ExamplesCampaign Examples
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Other success storiesOther success stories
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Resources Resources
• www.affiliatetip.com • www.affiliatesummit.com.au • http://www.affiliateforum.com.au/
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QUESTIONS?
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Matt Bateman MD – Viva9 Level 2, 62-64 Riley Street East Sydney Ph: (02) 9368 6850Email: [email protected] Twitter: viva9australia;matthieub
Contact:Contact:
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Mobile?Mobile?
• Mobile advertising is estimated to be a A$5m market in 2009
• Even in the US, mobile affiliate is still very slow in getting off the ground
• Some interesting companies in the space: – ADMob – Pudding Media – behavioural targetting and advertising
• Drew Ianni (chairman of Ad-Tech)
‘2009 is not the year for mobile advertising’
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The Ripple Effect in Social Networks The Ripple Effect in Social Networks
Laurel Papworth Presentation – affili@syd 2009