Affiliate Marketing Basics
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The document discusses affiliate marketing, including what it is, market size and trends. It defines affiliate marketing as a sales channel where advertisers compensate publishers for generating sales or leads. Key points include that the US affiliate revenue market is larger than video, social and mobile combined; there are over 20,000 brands with affiliate programs but only 300,000 active affiliates, with the top 30,000 driving most sales. The document outlines industry trends for advertisers and publishers and provides tips for affiliate marketing success, including managing programs actively and communicating regularly with affiliates.
Affiliate Marketing Basics
- 1. Affiliate MarketingDavid HerscottManaging Partner, NetX@dherscott6/14/2011
- 2. AFFILIATE MARKETINGWarm upWhat is itIndustry trendsTop dosTop donts
- 5. WHO?More than 20,000 brands have affiliate programs
- 6. MARKET SIZEUS affiliate revenue: larger than video, social & mobile combinedForrester 2009
- 7. THE SKINNYAbout 300,000 active affiliates in the USAbout 30,000 affiliates drive the bulk of the sales in the industryAbout 3,000 affiliates drive more than 70% of sales in most categoriesHad a reputation as the least professional practitioners on the DR side reputation is changing, less of a cottage industry in recent years
- 8. THE AFFILIATE ECOSYSTEMAffiliateNetworkProgram ManagerAdvertiserManages the program on the advertisers behalf. Can be an agency, an OPM or the Network.The marketplace, the third party tracking system & the back office.Publishes content, a virtual sales team that makes money on commission.YOU.SHAMELESSSELF PROMOTION
- 9. FIVE TYPES
- 10. LOYALTY
- 11. COUPON
- 13. COMPARISON
- 14. CONTENT
- 15. THE SALES PITCHMost efficient channelOnly surpassed by marketing to in-house listsFixed marginAdvertiser sets the cost per actionScalableTech enables programs to grow without cost increasesQuality of customersAffiliates drive customers of equal value to other marketing channels100% accountableNo dollar is wasted
- 16. INDUSTRY TRENDS
- 17. INDUSTRY TRENDS - ADVERTISERSWhile B2C programs dominate, there are more & more B2B programs2010 Affiliate Benchmarks Study
- 18. INDUSTRY TRENDS - ADVERTISERSAffiliate marketing has only recently become mainstream2010 Affiliate Benchmarks Study
- 19. INDUSTRY TRENDS - ADVERTISERSOver 60% of advertisers have less than 3,000 affiliates in their program2010 Affiliate Benchmarks Study
- 20. INDUSTRY TRENDS - ADVERTISERSWhile hard to read affiliate marketing is prevalent in most industries 2010 Affiliate Benchmarks Study
- 21. INDUSTRY TRENDS - ADVERTISERSApproximately half of all affiliate programs are managed internally2010 Affiliate Benchmarks Study
- 22. INDUSTRY TRENDS - ADVERTISERSOver 60% of advertisers feel their program meets or exceeds expectations2010 Affiliate Benchmarks Study
- 23. INDUSTRY TRENDS - ADVERTISERSAffiliate marketing is responsible for approximately 村 of online sales2010 Affiliate Benchmarks Study
- 24. INDUSTRY TRENDS - ADVERTISERSAdvertisers approach search arbitrage in different ways2010 Affiliate Benchmarks Study
- 25. INDUSTRY TRENDS - ADVERTISERSCustomer quality is equal to, or better than other online channels2010 Affiliate Benchmarks Study
- 26. INDUSTRY TRENDS - PUBLISHERSAffiliates care about commission, but they also care about reputation2010 Affiliate Benchmarks Study
- 27. INDUSTRY TRENDS - PUBLISHERSPromotional space is key, and there isnt a lot of it2010 Affiliate Benchmarks Study
- 28. INDUSTRY TRENDS - PUBLISHERSThe network you are on matters to affiliates2010 Affiliate Benchmarks Study
- 29. INDUSTRY TRENDS - PUBLISHERSAffiliates rely on you/your agency as the way to learn about your program2010 Affiliate Benchmarks Study
- 30. INDUSTRY TRENDS - PUBLISHERSSuccessful affiliates are buying search traffic2010 Affiliate Benchmarks Study
- 31. DO
- 32. Make sure you are offering competitive commissions
- 33. Establish relationships with the big guysUpromise
- 34. Cartera
- 35. Vesdia
- 36. VertiveSet up reliable trackingMust have
- 37. Network tracking in place (CJ, Linkshare, GAN)
- 38. Nice to have
- 39. Consider a UCT (universal container tag)
- 40. Establish KPIs
- 41. Dashboard reportsMake room for negotiationThere are published rates and unpublished rates. Save the best (unpublished) rates for high volume, high profile publishers.
- 43. 禽或鰻T
- 44. Dont neglect your programDOReview applications
- 45. Offer seasonal sales contests
- 46. Press the flesh
- 47. Pick up the phone
- 48. Create a promotions calendarDont underestimate the importance of commissions
- 49. Dont have insufficient resourcesDOActively manage your program
- 50. Consider a budget for placements
- 51. Refresh creativeDont get tactical without seeing the big pictureDOYearly competitive review
- 53. Analyze data - spot trendsDont go silent - communicate!
- 54. Thank YouDavid HerscottManaging Partner, NetXdavid@netx.com212.981.2700@dherscottwww.linkedin.com/in/herscottAffiliate Marketing