Strategies for Working with Incentivised Traffic

What is incentivised traffic?• Cashback• Loyalty or Reward Sites• Voucher Codes

Offering a reward or added perceived value to a consumer for transacting

Top 20 Affiliates - Diversification

Understand the cashback consumer

• Savvy online consumer• Savings are available online• Loyal to cashback site or cashback concept

• Number of Active Members - 250,000• Average Age, 30-35.• The age range from TopCashBack’s

observations is from 13 to 85.• The gender split is very close to a 50:50

breakdown, although maybe slightly towards a majority male by only a few percent.

• 120,000+ opt-in users• 80% growth in 2008• 1m+ pageviews per month• £1m+ generated for good causes

What is KidStart?• The UK’s first shopping club which gives members cash for their children for free whenever they

shop.• Members can allocate their savings to as many children as they like and also invite others to save

for their children• Money is automatically transferred into any Child Trust Fund or any Child Savings account

Who is KidStart?• New company launched in April 2008 based on US model• Launched with national PR campaign - over 60 articles published including BBC Breakfast show

Who are KidStart members?• 87% Parents and 8% grandparents• 86% women, 14% men• Member age 20 - 40, average age 34• Average 1.4 children registered per member• Children 81% aged 5 or under

• Members can then choose to 'Give' their cashback to charity or 'Take' it for themselves.

• Number of members: 255,000 • Page impressions per month: 237,452 • Unique Visitors per month: 38,250• User base is approx 60% female 40% male. • Age ranges between 18-50 yrs• Targeted age range is 18-35 yrs

Brand or price led?

3%?

2.5%?

2%?

3.5%?

Brand or price led?

3.5%

Cashback example

Cashback Strategy• ‘Landgrab’ to ‘buy traffic’ from competitors

• Monetise key trading periods• Work on areas with Margin?• Refrain from tiers• New customer acquisition

• Ensure parties are clear on campaign terms.

• Timely Validations• Monitor quality of leads where appropriate.

Additional Exposure – Email

Additional Exposure – On Site

Summary Cashback• Understand the cashback model and consumer • Brand or price led: own product only available from you or do you sell a generic product?• Monitor quality of leads if you run a lead based• Offer commission increases tactically• Campaign terms clarity.

Loyalty & Reward sites

• Long standing brand equity• Sophisticated sites and loyal users• Potential multi-channel coverage• ‘Value add’ competitions, engaged content

Additional Exposure - Email

Additional Exposure – On Site

•Benefit from their brand equity built over time; ‘value add’ rather than pure cashback.

•Offer engaged content and build affinity partnership opportunities. Wide scope for future growth.

Loyalty - Summary

Voucher CodesTop two voucher code affiliates by sales generated in last two years

The Questions you need to ask

• What are you looking to offer?• How do you control your codes?• Where do you appear on the sites?• What extra coverage can you get?• How can you track your code sales?• What should your T&Cs say?• How do you work your commissions?

A typical voucher code site• Clear distinction between voucher codes and deals.

• Start and expiry dates clearly mentioned (where applicable)

• All voucher codes and deals clearly displayed – no use of “click to reveal all” – users only click on the code or offer if they have genuine interest

• All expired codes and deals “greyed out” and clearly marked so there can be no confusion between valid and expired codes

Voucher codes – Displaying codes

Voucher codes – Displaying codes

• Bespoke codes• ‘Stretch and Save’ discounts• Monitoring & tracking• Not just voucher code directories• Test & optimise

Voucher Code Strategies

Voucher codes – Bespoke codes

Voucher codes – Stretch and Save‘Stretch and Save’

• 3% increase in overall programme AOV

• Voucher site saw 41% increase

Voucher codes – New customers

•Encourage new users (rather than repeat customers)

•Feedback to us the new customer percentages

•Set commissions according to quality of traffic

Voucher codes – ‘Landgrab’Exclusive code pushed out through email communication on Dec 10th 2008

Voucher Codes - Tracking

Voucher codes can be tracked in your Affiliate Window Account with voucher code tracking.

Voucher Codes – Summary• Be adaptable • Closely monitor and optimise• Use for tactical pushes and promotions• Be aware of competitor activity• Don’t just pay attention to directories; think ‘affiliates who use codes rather than voucher code affiliates’• Remember to factor in discount, commission and override; what can you afford?• Work commissions according to your ROI