you pay nothing unless a sale is made

Market Pressures

Google raises the bar in Paid Search with Adwords Quality Score

Search Engines continually improving their organic search algorithms to personalise search results

Maturity and size of the advertising market demands more accountability, quality, performance & ROI

Web users become smarter and more savvy expecting high quality web sites and services

Explosion of social networks and their ability to drive sales through personal recommendations

What if the restaurant gave you 10% of the bill of every friend you recommended it to?

“Affiliate Marketing” – not a new idea.

Nothing New

Good old days

Amazon Associates Program

One of the first online affiliate marketing programs and was launched in 1996.

Pioneers of Affiliate Marketing

Nothing else but PORN

Would you asociate your brand with porn?

Affiliate Marketing in Transition

Affiliate 1.0 >>>>>

Affiliate 2.0

Spam SEO sites High quality sites utilising user generated content and comparison engines

Unauthorised PPC activity Closed groups of approved affiliates providing complimentary PPC with performance targets and accountability.

Free Stuff Sites Cash back and reward sites with long term user bases

Part time affiliates Professional affiliate individuals and companies with dedicated resources

Email Offer Newsletters

CPM Banners

Desktop Widgets & Moblie Phones

Google AdSense

Emmerging Sectors in Europe

FMCG – 17%, Credits – 11%, Travel – 15%, Entertainment & games – 13%, Insurance – 8%, Medical products & beauty – 5%, Cars – 5%, Charity – 3%

“Online Affiliate Marketing” - allows a company to track and measure the exact source of sale & pay the commission to the originator of that sale.

Payment Models

You Need Offers

– Banners

You Need Offers

– Product links

You Need Offers

– Widgets

You need to build a Platform

– Hosting– Managing– Tracking– Reporting– Payments

You need Partners

– Affiliates on Social Networks– Search marketing affiliates– Email marketing affiliates– High traffic websites– Coupon affiliates– Niche content providers– Product review sites

Partners Big & Small

If you can pay $50 for a conversion – why would you care were you got it from?

It can be a website with only 20 users Too small to contact directly

Why partners?

• You need to partner with your affiliates, because you have to come up with price to keep everyone happy.

How to attract best affiliates?

• Compensation plan• Quality is the bottom line• Experiment with forms of advertising

(banners, product links, widgets)• Focus on conversion optimisation

example

Price – 20’000 EURDealers commision – n/aAffiliate commission – 300 EUR

Cost per lead (registration for test drive) 30 EURWebsite converts 5% (1 of 20 will register)Banner clickrate – 0,1% (1 of 1000)Affliate needs 20’000 impressions for 1 lead (registration).CPM price is 1 EUR – dealCPM price is 2 EUR – no deal

The Network – it’s a techology and a relationship connector

Network Benefits

Active affiliate network (recruit & review) Reliable tracking & reporting technology Help setting the right price One payments solution Experienced support Hosting & Creative solutions

Why number of affiliates Matters

December January February March April0

100

200

300

400

500

600

700

Number of Afiiliates on AdMix

Social networks drive sales through personal recommendations – Afiliate 2.0

Affiliates require easy access to products, data and pricing (API’s, web services, feed widgets)

Employ user generated content Merchants need to accept that their

brand/products will be atomised by affiliates. Excellent communication from all parties.

you pay nothing unless a sale is made

Q’s

7/7

If you’d like a copy of this presentation

OR

If you’d like to revolutionise your marketing

email dv@addvisors.lt

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