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Claudia KOSNYAnalytics [email protected]
Knewledge S.A.R.L | 4, Rue d’Arlon | Windhof Business Center | 8399 Windhof | Luxemborg
Introducing the Google Affiliate Network
Claudia Kosny, Knewledge Sarl
15h40 – 16h00
Affiliation process part 1 – set up
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Merchant
Affiliation process part 1 – set up
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Affiliate NetworkMerchant
• Signs up at network
• Provides advertising material
Affiliation process part 1 – set up
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Affiliate NetworkMerchant
• Signs up at network
• Provides advertising material
• Signs up at network
• Applies for merchant’s program
• Uses advertising material
Affiliate
Affiliation process part 2 – visitor flow
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Affiliate NetworkMerchant
Visitor
Affiliate
Affiliation process part 2 – visitor flow
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Affiliate NetworkMerchant
Visitor• Clicks on advertising
material
Affiliate
Affiliation process part 2 – visitor flow
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Affiliate NetworkMerchant
Visitor• Clicks on advertising
material
• Is redirected via network to merchant’s website
• Network registers click
Affiliate
Affiliation process part 2 – visitor flow
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Affiliate NetworkMerchant
Visitor• Clicks on advertising
material
• Is redirected via network to merchant’s website
• Network registers click
• Makes a conversion
Affiliate
Affiliation process part 3 – payment flow
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Affiliate NetworkMerchant
Visitor• Clicks on advertising
material
• Is redirected via network to merchant’s website
• Network registers click
• Makes a conversion
Affiliate
Affiliation process part 3 – payment flow
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Affiliate NetworkMerchant
• Reports conversion to network
Visitor• Clicks on advertising
material
• Is redirected via network to merchant’s website
• Network registers click
• Makes a conversion
Affiliate
Affiliation process part 3 – payment flow
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Affiliate NetworkMerchant
• Reports conversion to network
• Credits commission to affiliate
Visitor• Clicks on advertising
material
• Is redirected via network to merchant’s website
• Network registers click
• Makes a conversion
Affiliate
Affiliation process part 3 – payment flow
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Affiliate NetworkMerchant
• Reports conversion to network
• Credits commission to affiliate
Visitor• Clicks on advertising
material
• Is redirected via network to merchant’s website
• Network registers click
• Makes a conversion
Affiliate
• Invoices merchant
Benefits of Affiliation
• Extremely performance based – pay only on conversion
• special commission models for specific products
• special commission models for specific affiliates
• Multi-channel marketing (source: A4U, European Affiliate Marketing Landscape Report 2011)
Content / portal: 21% Price comparison: 12% E-mail marketing: 11% Niche / Micro-Niche: 11% Voucher codes: 10% Cashback / Incentive: 7% Mobile / App development: 4%
• Affiliates can select best advertising material for their content
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Complexity of Affiliation
• No fixed budget, difficult to forecast
• Requires active management by merchant (or agency) Recruit and approve new affiliates Provide incentives for existing affiliates Inform affiliates about current promotions, update banners Continuously check integrity of affiliates Ensure good conversion rate to entice new affiliates (high EPC) De-duplicate reported conversions
• Requires active participation by affiliate for best performance Needs to select banners and add to website Needs to check back for promotions and new banners
• Manual optimization of campaign
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Affiliation and Paid Search/Display
• Important step in buying decision process (price comparison, niche websites)
• Opportunity to advertise on websites that are not available via GDN
• Not suitable for short term campaigns
• Not suitable for pure brand campaigns, more conversion-focused
• Not part of the search process lower CTR
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Benefits of using a third party Affiliate network
• Many existing potential affiliates on (well-known) networks
• Higher (perceived) reliability
• Single invoice
• Fraud protection, policy enforcement
• Often additional tools available Voucher code management Banner rotation Container-Tag solutions …
• Less maintenance
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Google Affiliate Network
• Acquired through the DoubleClick acquisition in 2007
• Second major affiliation network in US, 38% YoY growth
• Since end of 2011 active in the UK
• Roadmap: Germany: Q3 2012, France Q4 2012, rest of Europe during 2013
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Google Affiliate Network
• Integration of merchant center data
• AdSense account is required same strict checks for compliance (no automated clicks or impressions)
• Easy signup for AdSense members unique affiliate distribution
• Easy integration into Blogger (currently US only)
• Cooperation with third party providers for keyword monitoring
• Easy automatic tagging of destination urls for (any) web analytics
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Google Affiliate Network – Homepage
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Google Affiliate Network – Manage ad material
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Google Affiliate Network – Finding new affiliates
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Google Affiliate Network – Finding new affiliates
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Google Affiliate Network – Reports
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Outlook
• Strong affiliate market in Europe Zanox: > 4.000 advertisers, >1.000.000 affiliates Tradedoubler: >1.900 advertisers, >128.000 affiliates Google Affiliate Network: >800 advertisers, >22.000 affiliates
• Generally positive outlook for affiliates, expected growth in 2012 about 14.9% (NL) source IAB
• 16% growth/year since 2007 (USA) source Forrester
• 313% YoY growth in revenues from mobile affiliate marketing (Europe) source Zanox
• 46% of surveyed affiliates now work full-time in the industry (2009: 34%) source Econsultancy.com
• 66% of affiliates earn more than 5000€/month source A4U
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