The document discusses affiliate marketing and its current state. It defines affiliate marketing as performance-based marketing where affiliates promote products and services and earn commissions based on sales or leads generated. The size of the industry is estimated to be over $3 billion in the US with over 10,000 merchants and 1 million affiliates. Trends in the industry include improvements in attribution tracking and opportunities in mobile, social media, and local marketing as these channels continue growing. The document emphasizes the importance of affiliates adapting to new opportunities to survive and succeed in the evolving affiliate marketing landscape.
5. Who Are “Affiliates”?
“The term „affiliate‟ means any company that
controls, is controlled by, or is under common control
with another company” /Compilation of State and
Federal Privacy Laws, 2002, p. 76/
“The term „affiliate‟ can be used as a generic word to
indicate either a subsidiary or division” /Business
information: how to find it, how to use it, 1987, p. 38)
Terms “affiliate and subsidiary” are “used
synonymously” /International dimensions of
management, 1989, p. 2/
6. Who Are “Affiliates”?
Affiliates:
Independent marketers
who may choose to
promote a business,
and be paid on
performance-based
arrangement.
Types:
i. Content (Answers.com)
ii. Coupons (RetailMeNot)
iii. Data feeds (Shopzilla)
iv. Display (Forbes.com)
v. Email
vi. Loyalty (TopCashBack)
vii. Mobile
viii. SEM (SEO & PPC)
ix. Social Media
x. Video
7. So Affiliate Marketing is…
... “the art of doing a merchant‟s
marketing better than they
can, and profiting from it.”
Chris Sanderson, AMWSO
8. How Much Do They Make?
Source: Darren Rowse, The Ultimate Guide to Making Money with the Amazon Affiliate Program,
ProBlogger.net, 4/24/2013
Note: The y-axis reflects shows earnings in USD
10. “Amazon ...derived about 40% of its sales from
partners participating in their “Associates”
program.”
Source: Siegel M. & Gibbons F, 2008, Stanford University,
Amazon Enters the Cloud Computing Business, p. 6
How Much Business They Bring?
Our experience: 20%-40%
11. Affiliate Marketing ≠ Channel
“…but, rather, a way of remunerating a marketer…
hence, affiliate marketing really exists on the
crossroads of a number of online marketing
channels and works with nearly all of them.”
Source: Affiliate Program Management: An Hour a Day (p. 24)
It is a marketing context, based on the principle of
performance-based compensation.
12. Affiliate Marketing ≠ Channel
It is integral to understand this for ensuring
proper/healthy co-existence (not conflicting, or
cannibalizing, but complementing) of affiliate
program with all channels of marketing that the
merchant is employing.
14. Size of the Industry (US)
• Advertiser/merchant count: 10,000+
• Publisher/affiliate count: 1,000,000+
• Spend: ≈$3,000,000,000
15. Size of the Industry (UK)
• UK advertiser/merchant count: ~3,000-4,000
• UK publisher/affiliate count: ~10,000
• Impact scale: ~100 million transactions, and
~70 million leads
• Scale: 7-9% of UK online marketing spend;
~6% of the UK Internet economy; .6% of GDP
• Growth: since 2008 UK affiliate marketing has
registered an average 12% YoY growth
Source: PriceWaterhouseCoopers study commissioned by the Internet Advertising Bureau UK, January 2013
16. Size of the Industry (Russia)
Source: AdLabs.ru estimates & forecast, as quoted by a CPA Club Russian Facebook group member
$2.4 million 2003 → $65.6 million in 2012
22. Set to eclipse desktop by 2014
71% of smartphone owners shop on mobile
Opportunity #1: Mobile
Mobile sales = 11% of e-commerce sales (2012),
15% (2013), 18% (2014) 21% (2015), 24% (2016)
Sources: Morgan Stanley, Skava, Branding Brand, eMarketer
26. Social shopping
Social gaming (warning: doesn‟t work w/ PPL)
Podcasting
Q&A and review websites (in US: disclosures)
Social media ads
Proactive conversation design
Opportunity #2: Social
27. “The total value of the global real-time mobile
location-based marketing and advertising market
will grow from € 192 million in 2011 at a CAGR of
91 percent to € 4.9 billion in 2016.”
Source: Berg Insight, Location-Based Advertising and Marketing, May 2012
Opportunity #3: Local
31. Perhaps the most important part of offensive
basketball is the part played by each man without
the ball.
~ John Woden, Naismith Hall of Fame Coach
One of the most difficult coaching tasks is to teach
players to carry out actions that don‟t involve the
basketball — the magnet of the game.
~ Krause, Meyer & Meyer, Basketball Skills & Drills
Moving without the ball requires you to be adept at
starting, stopping, faking, and changing
directions. You must have excellent court
awareness and vision…
~ Ralph Pim, Winning Basketball
Self-Educate to Survive Succeed!
32. Perhaps the most important part of offensive
basketball is the part played by each man without
the ball.
~ John Woden, Naismith Hall of Fame Coach
One of the most difficult coaching tasks is to teach
players to carry out actions that don‟t involve the
basketball — the magnet of the game.
~ Krause, Meyer & Meyer, Basketball Skills & Drills
Moving without the ball requires you to be adept at
starting, stopping, faking, and changing
directions. You must have excellent court
awareness and vision…
~ Ralph Pim, Winning Basketball
Self-Educate to Survive Succeed!