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A snapshot of Affiliate Marketing in February 2010, its value as a marketing channel and comparisons to the paid search marketing channel.
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| © 2009 Net Media Planet
Presentation to Google UK How Affiliate Marketing Looks in February 2010Sri Sharma Managing Director1st February 2010
| © 2009 Net Media Planet
Key Stats on Affiliate Marketing
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The UK affiliate market was worth £3.82bn in 2008,22% growth in 2008 and projected to cross £4bn 2009. Source: Econsultancy, Nov 2009
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The UK market for Search Engine Marketing was worth £2.42bn in 2008, 23% growth in 2008, projected to grow by 12% in 2009. Source: Econsultancy, Nov 2009
Paid Search forms 59.3% of all online advertising in the UK. Source: IAB UK, Apr 2009
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Affiliate Marketing –- How it works
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Where a third party advertises products or services on behalf of a retailer in return for an agreed commission for a sale or lead.
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MerchantAgencyAffiliateNetwork
Affiliate Publisher
Term covers the whole industry:
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34% full time, 46% part time, 20% hobbyists
18% female, the rest maleSource: Econsultancy, Nov 2009
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80/20 is actually 99/1
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Affiliate Marketing Mix
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Corporate intranet 2%
True content (SEO) 36%Paid Search (PPC) 20% Price comparison 11%
Blogs and forums 8%
Email marketing 5% Voucher codes 5%
Cash-back and reward 5%
Shopping directories 4% Social networking 3%
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Source: Econsultancy, Nov 2009
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Key Metrics for the Client in
Affiliate Marketing
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Typically Direct Response Goals
Target marketing Cost per sale
Contribution to profit of each incremental sale
Revenue generated per £1 spend
Cost per acquisition - paid to the affiliate (CPA)
Conversion Rate
Earning per Click (EPC)12
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The Client Perspective –
Why an Affiliate Marketing Strategy?
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Drive revenue
Expand reach with limited budget
Low financial risk
Easy to measure
Improve brand visibility and awareness
Influence other marketing activities
Complement other marketing activities
Board directors increasingly get it
Increasingly accepted part of the marketing mix
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Affiliate Marketing Strategy Examples
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Content SEO
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Rise of Voucher Codes
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Social Networking
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PPC
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2009
Thank youDo you have any questions?
E: [email protected] T: +44 (0) 203 008 8321Tweet me: @srisharmawww.netmediaplanet.com
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