Induction Affiliate Marketing ASE

8/10/2019 Induction Affiliate Marketing ASE

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Affiliate Marketing

ASE, Bucharest, 03.12.2014


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What is affiliate marketing?

Performance marketing channel that exists from the beginning of the ecommerce

You pay only the performance. The advertiser offers a commission only action basedetc.The advertiser sets up the commissioning scheme and the conditions for validating

The most performant solution from the ROI perspective, you are always in control o

Excellent solution for the advertisers that dont have consistent budgets on CPM/CP


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Key players in affiliate marketing

ADVERTISER

AFFILIATECLIENT

RECOMMEDATIONS, NEWS, ETC

CONVERSIONS REWARD


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Advertisers that use affiliate marketing in

Currently there are about 400 advertisers in Romania that use affiliate marketing in their

online marketing campaigns.


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The affiliate network

Offers for the advertisers andaffiliates the platform and thenecessary instruments for bothsides.

Tracking

Financial


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Cookie Tracking

When a visitors clicks on an affiliate link, a cookie its

stored on the visitors browser

When the visitors buys from the advertiser,

if its find a match between a cookie and an

action, the order details are sent to the

affiliate network to register in the

affiliate/advertiser account the commission

Besides having a commission offered by the

advertiser, each cookie has a lifetime, set by

the advertiser.

If the cookie expires, the conversion will not

be registered in the affiliate platform

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Cost models in affiliate marketing

CPA (Cost-per-Action)

CPS (Cost per sale) and CPL (cost per lead) are the most popmethods for commissioning the affiliates

CPS can be a percent or a fixed amount for the sale, used mecommerce websites

CPL its a fixed commission used mostly for tracking a single (completing a form, subscribing to a newsletter, etc)


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Cost per SaleCPS

4%

Comissio

28.35 Lei

From the price wit

708.87 Lei


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Cost per lead


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How are promoting the affiliates?BANNERS & WIDGETS

CONTENT, ARTICLES,

REVIEWS

GOOGLE ADWO

&

FACEBOOK A

Big publishers use widgets or banners.

With proper targeting, on this websites

the graphic instruments offer a good

conversion rate.

Affiliates are sharing on their

websites opinions or reviews about

the advertisers products and/or

services.

These websites are upper in the sales

funnel and have a good conversion

rate.

The affiliates are riski

promote the advertise

such as Google AdWo

With a good budget t

clients and convince t


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Niche websites

RESULTS:

Orders: 56

Orders value: 31.294 lei

Commissions offered by the advertise


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Niche websites

RESULTS:

Orders : 9

Orders value : 2.826 lei

Comissions: 386 lei


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Websites/personal blogs


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News websites


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PPC Google Search


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Social networks


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Video


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Cashback websites


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Price comparison websites


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How do affiliates choose which advertispromote?

60% of the affiliates are promoting only 3 advertisers, and 8promoting up to 5 advertisers

The most important thing for affiliates are the commissions and the advertisers reputation

Affiliates are calculating their revenue based on EPC; the higconversion rate and the commissions, the higher the EPC


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EPC

Conversion Rate

(usability, one-page checkout, offers, availability)

Average order value

(cross-sell & upsell)

Commissions and cookie lifetime

(Atractive for the affiliates, sustainable by the advertise

Approval rate of the commissions

(In stock products, fast shipping, etc)

EPC(Earnings per

100 clicks)


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Terms and conditions for the affiliate pr

Has the same importance as the commissions in determininwhether affiliates will promote or not the advertiser

The affiliates usually read the T&C and if something its notexplicitly denied, they will consider that as acceptable prommethod

Always be carefull when setting the T&C!


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Affiliate marketing performance indicat

New visitors

Average order value

Bounce rate

Customer lifetime value

Assisted conversions

Relevant

KPIs


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Recommendations for advertisers

Without navigation errors

FAST load time of the website

Friendly UX Design

Stable links for the landing pages

Optimised for online conversion (without

aggressive phone number display, etc)

Visit from Profitshare

Converted visitor


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Classic online advertising Affiliate marketing Limited budgets

Standard display banner sizes

Fixed locations

Limited optimization for the website

owner

Unlimited budgets

Various creatives

Any locations in the website (even

Can be easily optimized for perform

They are complementary!

Advantages for affiliate marketing


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Record payments

The biggest payment to an

affiliate ever in Profitshare:79.080 Lei

Affiliates can easily earn anextra income with littleeffort

Top affiliates are earningmore than 5.000 lei eachmonth. We have regularpayments of 20.000 lei ormore


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...Now we go BLACK


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Black Friday 2014 Objectives

2013 results

35 advertisers

25k sales

15M lei sales amount

46 affiliates with over 1.000 lei commissions in one day

1319 affiliates with commissions registered in one day

2014 objectives

50k sales (+100% YoY)

30M sales amount (+100% YoY)

+10% affiliates with over 1.000 lei coday

+10% affiliates with commissions reg


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Challenge

How to double the number of conversions and sales am


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We needed something bi

We had experience in driving good results for clients based on Black FHe organised competitions for all the affiliates for 2 times (Incinge Conve


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What motivates affiliates?

Competition

Reputation & Acknoledgement


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paid

AdWordsDisplay

Video

Bloggers

FacebookAds

special logo

newsletter(adv &

affiliates)

Landing Page

How did we promote the campaign?


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Realtime ranking

In order to keep affiliates

motivated we had arealtime ranking for thenumber of conversiongenerated and showingaffiliates position

Affiliates could adjust theirstrategy real-time


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Black Friday 2014 Results

2014 objectives 2014 results

86.318 sales

40.000.000 LEI sales amount for Pr

51 affiliates with over 1.000 lei com

23 affiliates with over 1.000 sales i

1798 affiliates with commissions o

50k sales (+100% YoY)

30M sales amount (+100% YoY)

+10% affiliates with over 1.000 leicommissions in one day

+10% affiliates with commissions registeredin one day


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Thank you!Follow us on:

blog.profitshare.ro

facebook.com/Profitshare

facebook.com/conversion.ro


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Documents

Induction Affiliate Marketing ASE