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Presentation by Matt Bailey of i-level, Helen Southgate at BSkyB and Reed Pridy from Neverblue attempting to answer the question "Is Affiliate Marketing Worth It?"
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Is Affiliate Marketing Worth It?
Matt Bailey – i-levelReed Pridy – NeverblueHelen Southgate - Sky
16% YOY £4.32
billion£227
millionSources: IMRG CapGemini eRetail Sales Index Sept 09 & eConsultancy Affiliate Marketing Buyers Guide July 09
Is AFFILIATE MARKETING worth
it?
YES!!!(if managed correctly)
What will we cover?• What is affiliate marketing?
• The make up of the “affiliate channel”– PPC Affiliates– Voucher code affiliates– Cashback affiliates
• Affiliate Relationships
• Lead Generation in Affiliate Marketing
• Where do affiliates fit into the sales journey?
Step 1 - Clickthrough
Step 3 - Reward
Step 2 - Sale
CPAClickSign-up
LeadSale
Relationships
Merchant Agency Affiliate Network Affiliates
Affiliate Types
Affiliate Marketing
PPC Content IncentiveVoucher Code Email
Price Comparison
Different methods require bespoke approaches
Pull Push
Working with PPC Affiliates
Maximize Search Engine Coverage
Increase Brand Awareness
Achieve Direct Response Objectives
Why work with PPC Affiliates?
PPC Affiliate Marketing
IncreasedReach Controls
Working with PPC AffiliatesFr
eque
ncy
of S
earc
hes
Number of Keywords
Sales
2 words; 30%
3 words; 27%
4 words; 17%
5 words;
8%
6 words; 4%
• Capitalize on the Long Tail• Dial-in consumer targeting
Increased Reach
Search Frequency by # of Keywords
Working with PPC Affiliates
• Engage PPC Search Affiliates in a controlled environment• Strategic Affiliate Relationships
Controls
Leverage the full breadth of PPC
Marketing – even beyond Search Engines
Voucher Code Affiliates
What are they?
• Offers for their users• Money off / sale • Create a loyal user base• Incremental channel?
What should you consider?
• Your margins• Offer + CPA = Real CPA
• Control• Strategic Vs Tactical
Cash Back Affiliates
What are they?
• Use commission to pass to customers
• Anywhere up to 100%• Create a loyal user base• Incremental channel?
What should you consider?
• Your cash back• Loopholes• Tracking value• Brand reputation
Affiliate Relationships
• Know your affiliates• Understand their model• Partnership• Your field agents
– Motivation– Reward– Respect
Online Lead Generation Through Affiliate Marketing
CPL
ROI
Re- marketing
Business Model
Synergies
Market Reach
Controls
Where do Affiliates Fit in?
The Purchase Decision
Affiliates
Display
Paid Search
Natural Search
Social Media
The Online Mix
The last event is not the whole story
Event type
Display Impression
Display Click
Paid Search
Natural Search
Affiliates
Sale
Conversion Event
E1
Conversion Event
E2
E3
E4
E5Event type
Display Impression
Display Click
Paid Search
Natural Search
Affiliates
Journeys can be long, complex & take many forms
Sale
Where do affiliates fit in?
Affiliate Only Affiliate comes in last click
Affiliate plays part in sale but
not last click
Analyse your data and base decisions on facts
Summary• There is no “affiliate channel”
• There can be risks involved…
• …however, if managed correctly it is an incredibly cost effective way of marketing.
Matt Bailey
Head of Affiliate, i-level
twitter.com/mattb811
www.mabailey.co.uk
Reed Pridy
Director Compliance and
Quality Assurance
Neverblue.com
Helen Southgate
Senior Online Marketing
Manager, BSkyB
twitter.com/helenmarie21
