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Affiliate Marketing Notes

Advanced notes on affiliate Marketing - with an emphasis on how an agency represents you
by

Steven Lownds

on 13 December 2013

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Transcript of Affiliate Marketing Notes

Managing an
Affiliate Programme

NEW CUSTOMERS?
THE MOST IMPORTANT QUESTION

What do you want out of your programme?
ROI?
VOLUME?
Closed groups
The power of
GET THE BASICS RIGHT
Commission levels
Cancellations
Deduplication
ROI
Seasonality
Essential closed group affiliates to recruit
IS IT...
IS IT...
IS IT...
Closed groups allow you to tailor promotions to different audiences and reward partners in different ways.

Closed groups rarely use SEO as a promotion method, so your brand name will not be presented to pre-qualified customers who are searching for you.

Closed groups are especially useful in combination with
cashback.
Your Brand name is Valuable
SEO | PPC | Vouchers
Affiliates are an on-demand workforce who contribute:
Human Capital, Advertising spend, consumer demand
Affiliate Marketing helps you turn it into:
Commission and Revenue for
Affiliates | Merchants | Networks
Awin ID: 2553
Awin ID: 71759
Awin ID: 69605
Affiliates are very aware of the ecosystem of merchants available for them to promote.

But unaware of the full range of affiliates available to merchants and what they charge.
Economic
Incremental
Scale
Cashback Voucher Content
Without negotiation affiliates offer a standard proposition:
But you can change this behaviour by identifying what each affiliate values.
Economic
Incremental
Scalable
Economic
Incremental
Scalable
Example:
A leading cashback site charges high tenancies to contact their members by email, but they offered it to us for free in exchange for exclusivity.
Cost:
promotion by several other cashback affiliates.
Return:
4 million email messages a month and inclusion as a preferred retailer
Our job is to understand what each affiliate can provide and identify the opportunities that deliver sales at an acceptable return on investment.
REMEMBER
Affiliates find it easier to promote recognisable brands because they can take advantage of existing demand.
Economic
Incremental
Scalable
You can take advantage of this, but don't give too much away.
Visitors generated through brand activity
may
already be qualified customers.
Draftfcb is an IPA Gold Accredited media and creative agency
Relationships between affiliates and merchants are usually bespoke and separately negotiated.
SCALABILITY
ECONOMY
INCREMENTALITY
A bit about me
Steven Lownds
Head of Affiliates at Draftfcb
Affiliate since 1998
worked at network, merchant and publisher level since 2005
Every time you say
yes
to an affiliate the relationship is enhanced.
Every time you say
no
to an affiliate the relationship takes a step backwards.
Commission Levels AND ROI
Merchant A paying 2% commission will have to generate 3 times more sales than Merchant B, paying 6%.
Affiliates are very aware of ROI when it comes to offering extra exposure.
Cancellations and Deduplication
When you approve a commission, is there a chance that the sale could still be returned or cancelled?
Do you work with other paid marketing channels such as PPC?
If you pay another channel and affiliates for the same sale, what will that do to your margins?
Seasonality
Good affiliates plan for Christmas in August
Key seasonal periods present limited windows to secure the best coverage.
Weeks 1 and 2: Useful for brand reinforcement and preparing the consumer.
Customers are now considering a purchase, but are not committing in significant numbers.

Weeks 3 and 4: Strongest week of the campaign. Paid activity to the right audience performs very well, especially to targeted demographics.

Week 5: Very close to the event, so demand waned. We did demonstrate that it is possible to stimulate extra sales in this period, but is should not be related to an upfront cost
1 2 3 4 5
A real world example:
Thank You
Steven.lownds@DraftFCB.com
020 3048 0041
Share a Coke
Some of our creative projects
Cannes 2013
1 Cannes Grand Prix
9 Gold
12 Silver
14 Bronze
1997: Bedroom affiliates
2000: Experimenting with Facial Hair and earning 50p per click
2003: Cashback introduced to the UK
2005: Wild West - cashing in on increased demand
2008: Embracing voucher codes and promo marketing
2013: Media professionals
The evolution of affiliates
Things we are excited about
Classic Google Analytics is sooooo last decade!

Google Universal Analytics and third parties such as Woopra give the same insights as GA but also track individual users actions as well as reporting on broad trends.

Track custom actions - sales, registrations and more

Typical results:
Self service campaigns and reporting
Several affiliates now offer reporting interfaces that you can log into to access performance figures.

Hugely useful when you have a deadline, and great for transparency to make sure an affiliate deserves the terms you negotiated with them
Who offers it?
Vouchercodes.co.uk, Netvouchercodes

and we hope many more...
Any Questions?
Some of the Draftfcb Media Team Clients
We manage private and open affiliate programmes in several verticals.

Each team is made up of specialists in their field and we cooperate to provide a comprehensive media strategy for our clients.

Affiliates on your programme are
your
clients. We never promote our other agency clients to your affiliates.

In 2012 we generated well over
£10 million
in revenue for our affiliate clients

An effective affiliate Manager keeps one eye on the future. New publishers, blogs and social platforms may not be an opportunity yet, but they could be in a years time.

Blogging and social platforms are making it even easier for people to become online publishers - somewhere in there will be the
next big thing
Full transcript