Performance marketing – how to make affiliates work for you

IOF Digital Fundraising Conference

12th September 2012

Karolina McIlroy, Guide Dogs

Agenda

What is affiliate marketing and how can it help you? Getting started and growing your programme Critical success factors and common pitfalls Hands on approach vs. agency management What can we learn from the commercial sector?

So what is AM / PM?

What is affiliate / performance marketing and how it can help you get new donors?

–The most measurable, trackable, reliable advertising model, where advertiser spend is based only on results–A no-speculation direct response method for driving business online–Fastest growing advertising model because it’s high-return and low-risk–An effective way to get hundreds of thousands of sites promoting your proposition

Source: http://performancemarketingassociation.com/

The players

How it works?

The marketplace

Who are the networks across Europe

Source: http://www.affiliates4u.com/media/uploads/docs/A4u_European_Landscape_Report_2011.pdf

Meet the average UK affiliate

Who are the affiliates:

Source: Affiliate census 2011, Econsultancy

Types of affiliates

Source: http://www.affiliates4u.com/media/uploads/docs/A4u_European_Landscape_Report_2011.pdf

How do they work

Source: http://www.affiliates4u.com/media/uploads/docs/A4u_European_Landscape_Report_2011.pdf

What channels are they using

Source: http://www.affiliates4u.com/media/uploads/docs/A4u_European_Landscape_Report_2011.pdf

Is it worth it?

Your own affiliate programme

Getting started– Choosing your technology / networks– Cost - Set-up and on-going fees / charges– Objectives, KPIs and strategies

Last click vs. attribution models

– Boundaries – terms and conditions / commissions / rules– Managing - agency or in-house?– Content is king 20% of Guide Dogs online signups are generated by affiliates

20% of Guide Dogs online signups are generated by affiliates

Success factors

Foundation stones– Payment | creative | feed– Incentives | commissions | product offering – Communication | relationship building

Alternatives

What matters to affiliates

Most important factors when working with a merchant and what would convince an affiliate to work harder for a merchant

• Commission levels and tiers

• Conversion rate levels

• Cookie period

• Quality of datafeeds

• Affiliate incentives and competitions

Guide Dogs CR is 3.7% up from last year 21% Actionaid CR – 5.4%Oxfam CR – 6.28%CRUK CR – 1.99% - 8.33%

Guide Dogs CR is 3.7% up from last year 21% Actionaid CR – 5.4%Oxfam CR – 6.28%CRUK CR – 1.99% - 8.33%

What works and what doesn’t

Source: http://www.affiliates4u.com/media/uploads/docs/A4u_European_Landscape_Report_2011.pdf

90% of Guide Dogs conversions happen as a result of a text link referral

90% of Guide Dogs conversions happen as a result of a text link referral

The commercial sector

Resources– Affiliates4U http://www.affiliates4u.com/feature/resources/

– Affiliates4U Forums http://www.affiliates4u.com/forums/forum.php

– Events http://www.affiliates4u.com/events/

– IAB

• http://www.iabuk.net/disciplines/affiliate-marketing

• IAB Guide - http://www.iabuk.net/disciplines/affiliate-marketing/guide

– Econsultancy

• UK Affiliate Census 2011

• http://econsultancy.com/uk/reports/affiliate-marketing-statistics

– DMA - http://www.dma.org.uk/news/affiliate-marketing-study-reveals-key-trends

– Performance Marketing Association (US) http://performancemarketingassociation.com/

– Marketing charts - http://www.marketingcharts.com/topics/behavioral-marketing/affiliate-marketing-boosts-online-buying-builds-brand-esteem-22499/forrester-rakuten-affiliate-mktg-brand-image-june2012png/ and http://www.marketingcharts.com/direct/one-channel-multiple-touches-common-in-online-orders-22643/

Thank you

Find me on:uk.linkedin.com/in/karolinamcilroy

@k_mcilroy

plus.google.com/102534906721142599157

Or drop me a line on karolina.mcilroy@guidedogs.org.uk

Any Questions?