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Internet Marketing Handbook Series
Affiliate Marketing Handbook     Visit iabuk.net/affiliatemarketing                Affiliate Dating   01




                                Introduction to
                               Affiliate Marketing
                                                    As the industry we need to be mindful of
                  By Dan Redfearn                   these issues. The IAB’s Affiliate Marketing
                   IAB Membership Manager
                     and Head of the Affiliate      Council brings together all elements of the
                          Marketing Council         industry to promote education, best practice
                                                    and self-regulation to help advertisers
Affiliate Marketing works. It really does.          better understand affiliate marketing. This
The UK’s leading retailers, financial services      handbook compiled by members of the
providers, utility companies all run affiliate      council aims to deliver clarity and inspiration
programmes. They recognise the fact that            for marketers looking to better understand
affiliates generate sales and can do so in a        how this fluid and pioneering channel works.
cost effective way unmatched by any other
online channel. But it’s not just the big boys
who can take advantage of this channel
SMEs too can utilise affiliates as an efficient
way to successfully achieve scale and sales.
                                                        Tip for Marketing Managers
The accomplishments of the channel over
the past ten years are in no small part down to
the continued innovation and entrepreneurial              Affiliates are a
nature of the affiliate publishers themselves.
However herein lays the problem of affiliate
                                                           sales force
marketing – understanding it. It’s very easy
                                                      Develop a positive relationship
for marketers unfamiliar with the channel to
be confused by jargon and blindsided by              and incentivise them. Treat them
how it all works. The continued development          with respect and keep them up
of the affiliate industry into a multi-
channel discipline necessitating different                            to date.
approaches and management can make
it difficult for advertisers to integrate it into
more traditional or linear marketing plans.
Affiliate marketing can also be difficult for                         Affiliate
marketers to explain internally and to justify
the way in which affiliate budgets require a
greater amount of flexibility than other forms
of marketing.
02 Affiliate Dating   Visit iabuk.net/affiliatemarketing   Affiliate Marketing Handbook
Affiliate Marketing Handbook    Visit iabuk.net/affiliatemarketing                 Affiliate Dating   03




                         Forecasting Affiliate
                        Marketing Programmes
                                                   Forecasting difficulties can arise when the
                    By Chris Worthy                major search engines change their ranking
                           Account Director,       algorithms as the changing positions of
                                   R.O.EYE
                                                   affiliate sites can have a major impact on
                                                   sales and leads, for good or bad.
Differences and Difficulties in
Forecasting Performance Based
Campaigns
                                                   The same can be said for search costs, if
Online marketing is dominated by
                                                   competition increases for key terms or quality
analytics    and     accountability     where
                                                   scores change, affiliate performance can
forecasting is considered the norm. This is
                                                   increase or fall, making it difficult to forecast
often driven by a requirement to keep within
                                                   precise figures. Performance marketing is a
advertising budgets and hit a target ROI.
                                                   very competitive industry and commission
It is understandable that merchants would
                                                   levels play an important part in attracting
also expect a level of forecasting for their
                                                   affiliates. Competitor commission increases
performance marketing campaigns, but
                                                   or decreases are difficult to anticipate and
there are factors in play that make it difficult
                                                   can impact on sales, whether it be for a
to forecast performance based campaigns.
                                                   short term incentive or a permanent change.


        Search engine changes

        Fluctuations in affiliate                  The factor that has the greatest influence
                                                   on forecasting is the availability of affiliate
        search costs and
                                                   resource. Affiliates have to allocate and plan
        competitor competition                     their time across a number of merchants
                                                   and scheduled projects which can often be
        Affiliate resource allocation              pushed back and forth. Forecasting revenue
                                                   increases for a quarter or even a month can
                                                   always be subject to change depending
Many affiliate sites are highly targeted           when the affiliate can allocate time to work
to specific verticals and product types;           on the merchants programme. It is important
this allows them to achieve high rankings          to realise that affiliate marketing relies on
on search engines and improve their                third parties whose development priorities
quality score for lower paid search costs.         can change throughout the year.
04 Affiliate Dating            Visit iabuk.net/affiliatemarketing    Affiliate Marketing Handbook

Why and How Should I Forecast?                   forecast to show the uplift achieved through
                                                 new publishers or initiatives that have been
Some merchants run their affiliate               actioned. Another important consideration
marketing campaign using finite marketing        is to align the affiliate forecasts with the
budgets. This leaves the potential of running    marketing calendars so that the effects of
out of budget to pay affiliates should they      marketing campaigns can be compensated
over deliver. It is important to understand      for.
that certain affiliate business models find
it extremely difficult to turn off or reduce
merchant activity due to budgets. For this             Costs
reason some level of forecasting is required
to ensure sufficient budget is allocated to      The final and most important elements of
the affiliate channel.                           forecasting are the costs. These can all vary
                                                 depending on the commercial agreements
                                                 you have in place but the management/
                                                 technology fees, overrides, commissions
When approaching affiliate forecasting           and any performance bonuses all need to
there are three key areas that need to be        be calculated to generate an overall cost
covered:-                                        and effective ROI.

       Natural Delivery                              Tip for Marketing Managers

Depending on the vertical, a performance
marketing campaign can be expected to                 It’s all about the
deliver between 5-40% of a merchant’s online
sales or leads. The overall performance of                    EPC
the merchant site will undoubtedly have an
impact on growth; a fast growing brand will            If you can’t make it work,
carry some of that growth and can be built           affiliates can’t make it work.
into the forecast using year-on-year and
month-on-month trend data.
                                                       Look at your conversions,
                                                  understand the route to sale and
                                                    optimise the process so when
       Sales Uplift
                                                  they deliver traffic it proceeds to
Successful performance marketing cam-              sales as efficiently as possible.
paigns will not rely on the merchants profile
to increase sales or leads. The role of the
network, agency or affiliate manager is to
add value to the programme through the
process of affiliate recruitment and publisher
development. This uplift can be reflected in a
Affiliate Marketing Handbook   Visit iabuk.net/affiliatemarketing   Affiliate Dating   05
06 Affiliate Dating            Visit iabuk.net/affiliatemarketing     Affiliate Marketing Handbook




                            Integrating Affiliate
                                Campaigns
                                                  competitive, affiliates will not be duped by
                By Owen Hewitson                  higher commissions if on-site conversion
                         Client Strategist,       and resulting EPCs are poor.
                         Affiliate Window


Separate From Other Forms Of
Budget                                            Because affiliates utilise a variety of
                                                  promotional methods, activity that has
From a budgetary perspective the CPA              traditionally worked on a CPC or CPM basis
model remains the distinguishing feature of       can be run through the affiliate channel. For
the affiliate channel. The principle that you     example, PPC affiliates can mitigate the
only pay when you get a sale makes affiliate      risks inherent in paid search campaigns by
marketing transparent and measurable.             working on a CPA basis, thus shouldering
                                                  the burden of monitoring spend and
                                                  optimising campaigns.
It is this pay-on-performance principle
which supports the argument that budget
allocated to the affiliate channel should be
                                                  However, running an affiliate prog
drawn not from the marketing budget but
                                                  ramme goes beyond budget allocation.
from the sales budget. Because affiliates
                                                  It requires proactive management and
are awarded only when sales are made the
                                                  long-term commitment. Even if sales
CPA model is risk-free from a merchant’s
                                                  are generated quickly, a well-optimised
perspective, assuming they have control
                                                  programme will take months to reach
over affiliate approvals. The main budgetary
                                                  maturity.
consideration is instead the level of affiliate
commissions.
                                                        De-duping

                                                  De-duplication (or ‘de-duping’) is a practice
However, from an affiliate perspective            that has a simple principle: that merchants
commissions are not the sole factor in            have visibility over where their sales are
determining whether to promote a merchant.        coming from and control over who to
A common fallacy is that merchants can            award for those sales. If you are engaged
buy more sales simply by increasing the           in multiple online marketing channels (PPC,
payout. Although commissions should be            SEO, email, display), or with more than one
Affiliate Marketing Handbook   Visit iabuk.net/affiliatemarketing   Affiliate Dating   07
08 Affiliate Dating             Visit iabuk.net/affiliatemarketing     Affiliate Marketing Handbook


affiliate network, you will want to ensure that    It is good practice to be transparent about
you are attributing incoming sales to the          your de-duping policy, as you would be
correct channel so you can then intelligently      about other key policies around PPC
apportion spend to those different channels.       and commission validations. Where de-
                                                   duplication is introduced without notice
The easiest way of automatically de-duping         affiliates will see a negative impact on
is by conditionally tagging each traffic source.   conversion rates and EPCs.
Conditional tagging is a simple,
cheap and accurate way to
determine the last referrer,
and through which channel
the customer came.
This can help you
avoid paying twice for
the same sale.

In deciding what you de-
dupe against and the logic
behind your conditional
tagging it is worth thinking
about the customer’s path
to sale and what part each
channel has played in referring
that customer. For example, you
may wish not to de-dupe affiliates
against display in recognition that a click
generated by the affiliate engages the
customer more in the path to sale than
an ad impression. Under this scenario a
merchant may adjust the amount paid to
each channel to split the cost between
them.

On the other hand, if a merchant de-
dupes against all channels and the
affiliate is the last referrer, they may
choose to pay a higher commission
given they are crediting the sale to
a single channel only.
Affiliate Marketing Handbook   Visit iabuk.net/affiliatemarketing   Affiliate Dating   09
10 Affiliate Dating               Visit iabuk.net/affiliatemarketing    Affiliate Marketing Handbook




                                   The different
                                  affiliate models
                                                    Positive & Negatives of Each
                      By Carla Arrindell
                                                    Model
                      Group Account Director,
                                       OMG
                                                    Loyalty & Reward sites, offering con-
                                                    sumers a reward in the form of cash or
Affiliate marketing as a multi-                     points for purchasing via their website.
channel discipline.                                 They deliver significant volumes, with above
                                                    average conversions and positively impact
It is misleading to think of affiliate marketing    on behaviour.
as a single channel, rather it is a group of
activities with a common remuneration               PPC affiliates buy traffic through bidding
model. That remuneration model facilitates          on relevant keywords within search engines.
some powerful benefits, one of which is             They deliver high conversions and target
enabling specific models of operation.              effectively, however higher CPAs or hybrid
                                                    remuneration models may be required, due
Working with a network enables access               to the increasing costs driven by search
to various affiliate models, the most               engines.
common being; Content, PPC, Loyalty
& Reward, Vouchercodes, Social media                Content affiliates optimise the content of
/ blogs, price comparison and Email.                their sites to secure positions within natural
Each segment of affiliates brings unique            search results, the ability to target niche
advantages and disadvantages to a                   demographic is valuable.
campaign. A good affiliate programme
                                                    Social Media/Blog sites target social
will use some or all of these segments,
                                                    media members by profile and are strong
according to campaign objectives.
                                                    at targetting niche audience segments too.
                                                    However, without a compelling offer, backed
                                                    up with a strong call to action, users may
                                                    not be lured away from their own content.

                                                    Price    comparison        sites    compare
                                                    products by price, typically in a table. They
                                                    can deliver substantial volumes of sales
                                                    when the pricing of a product is competitive.
                                                    Competition for ‘top of table’ positions
                                                    means CPAs can be high.
Affiliate Marketing Handbook   Visit iabuk.net/affiliatemarketing            Affiliate Dating   11

Vouchercode sites offer users a discount         media affiliates as users reaching these
code to be redeemed online against their         affiliates are in a passive buying mode.
purchase. The significant volume delivered
can be easily controlled by changing the         Broader
consumer offer. Clearly mark expired
codes so as not to deliver a poor customer       Clearly defined criteria around qualifi-
experience.                                      cation for a discount or reward is crucial
                                                 to ensure quality sales from Loyalty &
Email affiliates promote to their own            Reward and Vouchercode sites. The same
databases, acquired through a variety of         considerations don’t apply to PPC, SEO
sources, they have a broad reach. Consider       and price comparison affiliates. Delaying
the source and level of detail of the data       validation of sales for Loyalty & Reward
to minimize over-promotion to existing           sites can also be an effective way of
customers.                                       increasing quality.

                                                 Maximize performance by continually
                                                 reassessing and understanding volume
                                                 drivers.
      How to effectively engage
      and manage these segments
                                                     Tip for Marketing Managers
Each model needs to be managed and
engaged with differently, to ensure you get
maximum results.                                    Last Click is not a
Interaction and insight
                                                         panacea
Advance warning of offer changes are
                                                        now your customers
                                                       K
key to ensure content does not become                  behaviour and allocate
out of date. Integration and communication             your marketing budget
about wider marketing activity both online
                                                       accordingly.
 offline, will create further focus from SEO,
PPC, Loyalty  Reward and Vouchercode
                                                        o not be afraid to look
                                                       D
sites. Social media, price comparison and
emailer’s traffic is driven more by consumer           beyond the last click to
choice.                                                reward particular types
                                                       of affiliates. For example
Define commissions and triggers                        paying email affiliates a
accordingly
                                                        PM or giving tenancies to
                                                       C
Compelling offers and strong call to                   top affiliates.
actions are necessary for email and social
12 Affiliate Dating              Visit iabuk.net/affiliatemarketing   Affiliate Marketing Handbook




           It all points to
           a great opportunity
           Nectar has over 17 million users across the UK and we can
           put your business in front of them 24/7.
           Interested? Then join us today and take advantage of...

                 Bonus point offers
                 Voucher codes
                 Gift finder
                 Comparison shopping engine
                 Nectar Toolbar powered by Yahoo!


           To discuss affiliate opportunities as well as the finer
           points of our loyalty scheme contact:

           Maureen McDonagh, Head of E-Commerce
           m.mcdonagh@loyalty.co.uk
Affiliate Marketing Handbook   Visit iabuk.net/affiliatemarketing                 Affiliate Dating   13




                           Incentivising affiliates

                                                     Effective ways
                        By Pete Rowe
                                                     to incentivise         affiliates
               Managing Director, affilinet

                                                     • Increase the default
                                                       
                                                       commission rate.
When done in the right way incentivising
affiliates is a popular driver to improving            he most effective and used in
                                                      T
                                                      
the performance of an affiliate program.              almost all affiliate programs. Raising
A successful strategy can aid the affiliate           default commission levels can be
recruitment process, increase the exposure            done on program launch to drive
of the advertiser’s product or service online,        awareness and grow the affiliate
activate dormant publishers and build                 base, when re-launching on a new
loyalty among the affiliate base. However             network and for pre-determined
in a crowded landscape incentivising                  periods of time to tactically boost
effectively is becoming increasingly difficult        revenue.
and, when done in the wrong way, can even            • Offer a tiered commission
                                                       
be detrimental to the success of a program.            structure.
                                                       S
                                                        imple yet effective. The concept
                                                       being, the more sales the affiliate
                                                       generates, the higher the level of
      The benefits of a                               commission they receive.
       considered incentive
       strategy                                      • Run prize draws and
                                                       
                                                       competitions.
                                                       Advertisers sometimes offer the
It is important to consider what you want to
                                                          opportunity for affiliates to be
achieve when putting together a strategy.
                                                          entered in to a prize draw in return
Incentives can also be used to tactically drive
                                                          for each link they put on their
sales in peak seasons, build momentum in
                                                          website, sale they make or other
quiet trade periods and can help to give an
                                                          target achieved. Often used by
advertiser a competitive advantage when
                                                          large advertisers with big budgets
negotiating coverage on larger sites.
                                                          to spend on impressive prizes.

                                                                    Continued overleaf....
14 Affiliate Dating            Visit iabuk.net/affiliatemarketing     Affiliate Marketing Handbook

                                                 Key Tips To Consider When
    Effective ways
    to incentivise        affiliates             Incentivising Affiliates

                                                 Keep it simple - Time is precious, so
    • Offer a cash reward
      
                                                 keep your incentive simple. Affiliates want
      his method can be ineffective as
      T                                          to be able to immediately understand
      it often rewards the same affiliates       the incentive offering and then simply
      and does not tend to incentivise           implement a strategy. The size and scale
      high earning affiliates. Offering a        of the incentive should reflect the amount of
      cash reward is only recommended            time that affiliates will need to invest.
      with careful consideration, carefully
      consider the targets and incentives        Be creative - Affiliates are offered
      set to ensure that the strategy does       incentives on a regular basis and certain
      not leave you out of pocket.               prizes are ubiquitous. iPods and small cash
                                                 rewards may sound appealing but they
    • Offer own products as an
      
                                                 don’t necessarily stand out from the crowd.
      incentive.                                 Advertisers have been known to offer all
      R
      eliant on the advertiser under-           inclusive holidays to Bali but being creative
      standing their affiliates, success is      does not have to cost a fortune. If you have
      largely dependent on the appeal of         a limited budget, think of something fun or
      the product in question.                   exclusive.

                                                 Be inclusive - In many cases merchants
                                                 offer incentives to the top performing affiliate
                                                 to achieve sales targets in a certain trading
                                                 period. However this excludes the longer
                                                 tail of niche affiliates. Instead try to be more
                                                 inclusive and offer scalable incentives based
                                                 on individual affiliates increasing their own
                                                 performance.

                                                 Offer bespoke incentives - As with
                                                 consumers the best method of appealing
                                                 to affiliates is to target them individually.
                                                 This method may be time consuming but
                                                 will definitely pay off and result in optimum
                                                 revenue generation. Managed strategically,
                                                 it will also ensure that you are rewarding
                                                 affiliates for pushing their sales efforts at
                                                 different times across the sales cycle, and
                                                 that you can negotiate top coverage spots
                                                 on competing affiliate sites.
Affiliate Marketing Handbook                      Visit iabuk.net/affiliatemarketing                                                     Affiliate Dating     15




                                  Know
                                  Know who y re working with
                                           you’re
                                           you        g




       Finding the right partners for your program is key. Contact the affilinet team for strategic advice. T. 020 7067 2480 I E. newbusiness-uk@affili.net




AFF_a4u2_A5_2010_RZ.indd 1                                                                                                                         04.11.10 10:32
16 Affiliate Dating            Visit iabuk.net/affiliatemarketing     Affiliate Marketing Handbook

                                                 Objectives
                      CASE STUDY                 • Motivate all affiliates, large or small, to
                                                   
                                                   lift sales into a higher sales tier.
                                                 • Motivate new affiliates to grow their
                                                   
     Red Letter Days and                           performance as quickly as possible.

      Affililate Window                          • Maintain long-term interest in the Red
                                                   
                                                   Letter Days programme and combat
       deliver affiliate                           seasonality drop-off.
    incentive programme                          • Increase the contribution of affiliate
                                                   
                                                   sales to overall web sales.
        to drive sales
                                                 • Deliver a significant uplift in affiliate
                                                   
                                                   sales from 2008 to 2009.
           By Kevin Edwards
                                                 • Ensure that the cost of the incentive
                                                   
     Strategy Director, Affiliate Window
                                                   programme was delivered on target.


Overview
                                                 Incentive programme structure,
In 2009 Red Letter Days set itself the           Q1-Q3 2009
challenge of delivering the best affiliate
                                                 The primary aim was to reward a broad
incentive programme in the market. The
                                                 spectrum of affiliates of all sizes and
key measures of success were to make
                                                 types; smaller affiliates could significantly
it available to all affiliates, ensure the
                                                 uplift performance with the right tools and
incentives were highly achievable and to
                                                 recognition, while larger affiliates could be
deliver to a target ROI. The result was a
                                                 incentivised to invest greater amounts of
quarterly incentive scheme combining
                                                 time into Red Letter Days above competitor
compelling prizes with an innovative
                                                 programmes.
approach. By rewarding affiliates based on
their own performance rather than requiring
                                                 The model adopted was to offer
them to compete against each other, Red
                                                 guaranteed prizes for hitting various sales
Letter Days demonstrated understanding
                                                 tiers, starting at just £1,000 per quarter
that a successful affiliate programme should
                                                 from Q1-Q3 and £1,500 in Q4 (around 8-12
treat affiliates as individuals. The incentive
                                                 sales), ensuring that prizes were within the
scheme was key in exceeding sales targets.
                                                 reach of every affiliate.

                                                 The quarterly incentive scheme was
                                                 communicated to affiliates via the a4u
                                                 forum, network email, the Red Letter Days
                                                 affiliate blog, via new affiliate sign-up emails
                                                 and on network signup pages.
Affiliate Marketing Handbook   Visit iabuk.net/affiliatemarketing          Affiliate Dating   17

2009 Q4 incentives – the crucial
Christmas gifting period                           Results

Following the success of Q1-Q3 2009 it was
                                                       Contribution of affiliate
recognised Q4 2009’s incentive scheme                  sales to overall web sales
would have to be the best yet. In addition:            more than doubled.

    All affiliates who hit £1,000 worth of
                                                       Affiliate revenue uplift was
    sales received a hamper delivered in
    time for Christmas.                                nearly threefold.

    Three holiday prizes were offered                  Affiliate revenue in 2009
    including 7 nights in Bali for 2 and
                                                       was significantly above
    two European city breaks.
                                                       target.

                                                       The cost of the affiliate
                                                       incentive programme was
                                                       well within the objective.

                                                       Successful elevation of a
One of the city breaks was given to the                number of affiliates from
affiliate judged to have produced the best
Red Letter Days landing page, while the
                                                       mid to top performers.
other was drawn from a pool of the top 5
most improved affiliates and the top 5 best
new affiliates signed up after 15 September
2009. The Bali holiday prize was determined
by a prize draw, but with a twist. Affiliates
earned tickets into the draw in return for
fulfilling certain criteria e.g. uploading a
particular type of creative, or selling a
particular product, rather than rewarding
sales results alone.

Winners were announced via videos posted
on youtube.

Feedback for Red Letter Days’ Christmas
incentive was hugely positive and received
bloggers’ praise.
18 Affiliate Dating   Visit iabuk.net/affiliatemarketing   Affiliate Marketing Handbook
Affiliate Marketing Handbook    Visit iabuk.net/affiliatemarketing                 Affiliate Dating   19



                               Working with networks,
                                agencies or in house
                                                   Having a direct relationship with the affiliates
                By Alistair Nichols                enables you to negotiate the commissions
                    Head of Agency Sales,          directly and possibly give yourself room to
                               Webgains            offer more than your nearest competitor
                                                   should you choose to pass on the saving to
As a merchant, there are roughly speaking          your affiliate partners.
three avenues to choose when launching
your affiliate program. Firstly, you could         Downsides include difficulty in recruiting the
always go it alone, purchase a white label         biggest affiliates and the labour intensive
tracking solution and set up your own in-          work involved in this process should not
house network. Secondly, you could use             be underestimated. Affiliates will only join
your existing agency or hire a specialized         your program if they have 100% trust that
affiliate management agency to run your            sales are tracked and that they will be paid
program. The last option is to join an affiliate   promptly and correctly.
network and opt for a self managed or
account-managed solution utilizing the             In-house programs have worked very well
network’s tracking and reporting technology,       for the likes of Amazon (with huge in-house
experience and trusted payment solutions.          resource) and now eBay but in the latter’s
                                                   case this was after years of running a very
Each     option    offers    benefits  and         successful program on a network and
disadvantages. The right solution for you          building up trusted relations with affiliates.
will be dependent on numerous factors
including: which activities you want to be
personally involved with, the business you
are in, the amount of control you require
over your brand usage and your marketing                 Working with an Agency
budget.
                                                   Working with an agency allows you to
                                                   establish a relationship with them which
                                                   allows them to know about your brand,
                                                   marketing strategy and brand values. An
         Running a Program In-house                agency is also more likely to have a view
     
                                                   of the fully integrated marketing plan and
The main benefit to running an in-house            therefore integrating the affiliate strategy
program is the perceived cost saving.              should be seamless and efficient.
20 Affiliate Dating            Visit iabuk.net/affiliatemarketing   Affiliate Marketing Handbook

Employing an affiliate management agency         for a detailed Service Level Agreement and
has further benefits as they are the             compare and contrast the offerings.
specialists in this field. They will have much
more knowledge and experience managing           With regards to technology, does your
affiliate campaigns. You would be able to        network offer “Whistles and Bells” or are
leverage long established relationships with     they just tracking your sales and paying
hundreds, if not thousands, of established       your affiliates? Can your potential network
affiliates.                                      manage Voucher Codes effectively? How
                                                 do they police your PPC policy? What fraud
                                                 protection technology is there on offer?



        Running a program with a
        network


The most common way to launch
                                                     Tip for Marketing Managers
an affiliate program is to join an affiliate
network. When joining an affiliate network,
you are tapping into the network of affiliates
built up after many years in the industry,               Brand control
as well as having instant access to the
knowledge and experience of the network’s               eep an eye on the quality
                                                       K
staff. Remember, that it is in the interest of         of the sales you are being
the affiliate to be joined to every network so
                                                       sent. Put in place processes
it is very rare indeed that one network has
exclusive deals with the biggest affiliates.           to check the real value of the
                                                       generated sales.
When choosing a network to work with,
you should concentrate on looking at their
record of customer service both for you and
your affiliates and their record of developing
their technology.

Using a network means paying (in most
cases) a 30% override premium and
therefore you want to know that this money
will be spent wisely. Ask your network how
many accounts your account manager
works on, as well as how much time will be
dedicated to optimizing and marketing your
program? If possible ask potential networks
Affiliate Marketing Handbook   Visit iabuk.net/affiliatemarketing   Affiliate Dating   21
22 Affiliate Dating            Visit iabuk.net/affiliatemarketing      Affiliate Marketing Handbook




                           Using Affiliates as
                               Partners
                                                  considerably sized affiliate programme.
                      By Sanjit Atwal
                        Network Director,         Then there are the commercials...
                           Tradedoubler           The metric of choice for the savvy affiliate
                                                  is EPC – Earnings Per Click. “What, on
Section I: Introduction                           average, do I earn for each click I send
                                                  through to you, Mr Advertiser?” To warrant
One word we will not be using in this             an affiliate giving you valuable real-estate
section of the IAB Affiliate Marketing            on their sites there must be a compelling
Handbook is ‘Supplier’. Effective affiliate       argument for them to do so.
marketing has long evolved away from the
setting of hierarchical frameworks in which       Section III: De brief
advertisers, agencies and networks take
unnecessary liberties with publishers. So,        Affiliates can provide an instant measure-
with this in mind, this chapter will help frame   ment of success of your business – a gauging
how best to use affiliates as your partners.      of market appetite for the latest range
                                                  your brand have deployed.As previously
Section II: The Brief                             mentioned, affiliates will be working with
                                                  many merchants and, as such, will have
This briefing can take many forms but             access to competitive market information
the most effective in terms of driving            that would be both valuable and, without
sales and leads for your products is the          a good relationship, otherwise inaccessible
sharing of your marketing and promotions          to you. You can ask for an intelligent
calendar. Regularly communicating offers,         benchmark of where your offering sits in the
discounts, voucher codes and the USPs             affiliate channel and any recommendations
of your products will ensure that you are         on how to increase the quality and quantity
gaining a greater market share on affiliate       of sales.
sites through the process of education
(remember – affiliates can choose who they        From the affiliate’s point of view, the decision
do or do not promote!).                           to work closely with a trustworthy advertiser
                                                  to optimise offers for their users will be an
This communication strategy brings with it        easy one. Use this information wisely to
a commitment of openness of agenda with           constantly refine your affiliate proposition
regards to remuneration, technical set-up         into a market-leading offering. The other
and de-duplication. All of which build trust      benefit of such an approach is that you
with your valuable virtual sales-person.          will be bringing your affiliates closer to your
Your affiliate network account manager (if        brand – something which bodes well for the
you have one) will be a key in this process       successful long term stability and scalability
– especially if you are aiming to have a          of your plans in the affiliate channel.
Affiliate Marketing Handbook   Visit iabuk.net/affiliatemarketing               Affiliate Dating   23




                                                            Over 1,900 advertisers




                                                Over 128,000 active publishers




                                Over 154 million unique visitors per month




                          Europe’s No.1 Performance Marketing Specialist




                               Sanjit.Atwal@TradeDoubler.com               Network Director
                               Paul.Wright@TradeDoubler.com         Agency Services Director
                               Ricki.Jones@TradeDoubler.com           Head of Affiliate Sales

                                                                    TradeDoubler
                                                                    24th Floor
                                                                    Portland House
                                                                    Bressenden Place
                                                                    London
                                                                    SW1E 5BH

                                                                    Tel: +44 (0) 207 798 5800
                                                                    Fax: +44 (0) 207 798 5801
                                                                    Sales.UK@TradeDoubler.com
24 Affiliate Dating              Visit iabuk.net/affiliatemarketing    Affiliate Marketing Handbook




                            Affiliate Marketing
                              and Creativity
                By Fiona Robertson                    The key points for
                          Head of Affiliates         developing banners are:
                Performance, Bigmouth Media
                                                      • Well branded – have a logo or
                                                        
Not usual bedfellows                                    brand name in most frames
                                                         ut remember an absolute affiliate
                                                         B
A poor creative toolkit is a handicap.                   marketing no-no is an URL on the
Today affiliates have the choice of thousands            creative
of merchants and a good toolkit helps with
affiliate recruitment, retention and helps            • Eye catching - have a message
                                                        
affiliates accurately represent and promote             in mind and get this across
your brand.                                             effectively

                                                      • A strong call to action – think
                                                        
                                                        of this from a consumers’
   At the very least affiliates                         perspective and talk their
   should have banners in gif and                       language
   flash format in the following                       Get a quote’, ‘Download’, ‘Open
                                                         ‘
   sizes:                                                an account’, are all good – “More
                                                         information” is not!
       468x60
                                                      • Contain price points or USPs –
                                                        
       125x125                                          shout about where your brand
                                                        is strong
       120x600
       120x60
       234x60




Affiliates will request creatives in other
formats that fit their site so it is a good idea
to bear this in mind, be flexible.
Affiliate Marketing Handbook                 Visit iabuk.net/affiliatemarketing
               Affiliate_Marketing_Handbook_A5_Advert copy.pdf 1 11/10/2010 14:50:25                                                        Affiliate Dating   25




                     Is your affiliate marketing
                     as effective as it could be?
 C



 M



 Y



CM
                                                                           As a cross-channel agency, at bigmouthmedia
MY                                                                         we know how to look at your online strategy as
CY
                                                                           a whole to make sure you get the best out of
CMY
                                                                           digital channels.
 K
                                                                           We are experts at calculating ROI, maximising
                                 GET                                       synergies and integrating affiliates with SEO,

                          EAF LVE
                        CRH AFTIIIATES
                                                                           PPC, display and social media. And, thanks to
                                                                           our network neutrality, we only work with the
                                                                           partners that truly fit your program.
                       WISTE FIONA ROBINRTTHSISN’S
                          E
                                       E O
                                       R
                                 CHAPTE BOOK                               If you’re ready to take your affiliate marketing
                                    HAND                                   to the next level, come and speak to us. We bet
                                                                           you’ll like our affiliate management style – and
                                                                           the results that it achieves.




             www.bigmouthmedia.com                       |   0845 130 0022            |   hello@bigmouthmedia.com
           www.bigmouthmedia.com                               |   0845 130 0022                   |   hello@bigmouthmedia.com
          S E OO • • PP P C •• AAF F IFLII L ITA T E• SD I• S P LI A YP •L A O C •I ASL OMCEIDAI L •MO N LII A E • PO N LWI O REL D W I D EW O R L D W I D E
            SE          P                  A ES               D S SY                             A   ED N R • N PR •
26 Affiliate Dating             Visit iabuk.net/affiliatemarketing       Affiliate Marketing Handbook

Give your affiliates a solid set of generic        The availability of feeds has allowed
creatives summarising your brand and offer         other tailored creative solutions to appear.
tailored messages for key offerings. Give          Content Widgets are an example of creatives
affiliates the option to select what is best for   that affiliates can utilize highlighting specific,
their audience. Tactical messaging works;          relevant products. A standard 120x600 ad
when there is a sale; give affiliates the          unit can showcase one or more product
creative to promote this.                          offerings. If a feed is in real time then these
                                                   ads can be dynamically updated to show
Once your set of creatives is complete do          the most relevant product.
not leave them untouched until the end
of time. Creative gets old. A quarterly/
seasonal refresh is best practice.

                                                   Enabling search or booking banners
Affiliates have a knack of using your best
                                                   for the affiliate channel shortens the
creatives but one of the most effective
                                                   consumer journey, increasing conversions.
techniques for conversion are text links.
                                                   For example a hotel booking banner from
Pre-written text links will give your affiliates
                                                   a merchant’s site on an affiliate’s allows
an easier route to displaying your key
                                                   users to select location, dates of stay, etc.
messages and promotions.
                                                   When checking availability the users will be
                                                   taken to search results on the hotel site,
                                                   rather than the homepage or hotel page –
                                                   increasing the chance of that sale.


Affiliates are creative and
entrepreneurial so tap into this

Product feeds, or data feeds, have
in recent years become a key method
for many affiliates. Initially used in price
comparison, a feed allows affiliates to be
provided with live information – imagery,
descriptions, price points, etc. A feed is
generally provided to a network in CSV or
XML format – and the more fields included
within a product feed the better. Common
feed errors include incorrect pricing, out of
date stock information, bad descriptions
and incorrectly categorized products.
Real time or regularly updated feeds with
accurate information will stand you in good
stead with affiliates.
Affiliate Marketing Handbook         Visit iabuk.net/affiliatemarketing                          Affiliate Dating   27



                                                                                            Ask u
                                                                                                  s
                                                                                           indep for an
                                                                                         progr endent
                                                                                              am re
                                                                                                    view



   Accelerate your affiliate
   marketing program




    • The affiliate management agency with global reach.
                                                                              Contact us:
    • Dedicated, exceptional, proactive account management.
                                                                             nonstopConsulting
    • Recently launched London office bringing nonstop’s                      Lemon Studios
      expertise to the UK market                                              2nd Floor, 85 Clerkenwell Road
                                                                              London EC1R 5AR
    • Fully scalable local and international affiliate
      management services  paid search solutions                            tel. +44 020 7681 4049
                                                                              www.nonstopconsulting.co.uk
    • Proprietary management technology powering your
                                                                                  Follow nonstopConsulting UK
      program.                                                                     on Twitter @nsCi_UK

    • We listen, understand, devise and deliver winning
      solutions to exceed your commercial objectives.



      info@nonstopconsulting.co.uk
28 Affiliate Dating                  Visit iabuk.net/affiliatemarketing   Affiliate Marketing Handbook




      851
       ForUSC,oneofourclients,weachieved
                                                         %
       an851%Q4yearonyearincreasein
       affiliatesalesasaresultofourspecialist
       affiliate programme management.

      “Themanagementofaffiliateactivityandthe
        salesachievedby7thingsmediainthepastyear
        havebeenastonishing.”
       LyndsayMcGonigle,HeadofeCommerce,USC



       …doyouwant7thingsmedia
       toscaleyouraffiliatesales?




       T: 020 3384 5650
       E: hello@7thingsmedia.com
       www.7thingsmedia.com
Internet Marketing Handbook Series

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Affiliate marketing handbook iab 2012

  • 2.
  • 3. Affiliate Marketing Handbook Visit iabuk.net/affiliatemarketing Affiliate Dating 01 Introduction to Affiliate Marketing As the industry we need to be mindful of By Dan Redfearn these issues. The IAB’s Affiliate Marketing IAB Membership Manager and Head of the Affiliate Council brings together all elements of the Marketing Council industry to promote education, best practice and self-regulation to help advertisers Affiliate Marketing works. It really does. better understand affiliate marketing. This The UK’s leading retailers, financial services handbook compiled by members of the providers, utility companies all run affiliate council aims to deliver clarity and inspiration programmes. They recognise the fact that for marketers looking to better understand affiliates generate sales and can do so in a how this fluid and pioneering channel works. cost effective way unmatched by any other online channel. But it’s not just the big boys who can take advantage of this channel SMEs too can utilise affiliates as an efficient way to successfully achieve scale and sales. Tip for Marketing Managers The accomplishments of the channel over the past ten years are in no small part down to the continued innovation and entrepreneurial Affiliates are a nature of the affiliate publishers themselves. However herein lays the problem of affiliate sales force marketing – understanding it. It’s very easy Develop a positive relationship for marketers unfamiliar with the channel to be confused by jargon and blindsided by and incentivise them. Treat them how it all works. The continued development with respect and keep them up of the affiliate industry into a multi- channel discipline necessitating different to date. approaches and management can make it difficult for advertisers to integrate it into more traditional or linear marketing plans. Affiliate marketing can also be difficult for Affiliate marketers to explain internally and to justify the way in which affiliate budgets require a greater amount of flexibility than other forms of marketing.
  • 4. 02 Affiliate Dating Visit iabuk.net/affiliatemarketing Affiliate Marketing Handbook
  • 5. Affiliate Marketing Handbook Visit iabuk.net/affiliatemarketing Affiliate Dating 03 Forecasting Affiliate Marketing Programmes Forecasting difficulties can arise when the By Chris Worthy major search engines change their ranking Account Director, algorithms as the changing positions of R.O.EYE affiliate sites can have a major impact on sales and leads, for good or bad. Differences and Difficulties in Forecasting Performance Based Campaigns The same can be said for search costs, if Online marketing is dominated by competition increases for key terms or quality analytics and accountability where scores change, affiliate performance can forecasting is considered the norm. This is increase or fall, making it difficult to forecast often driven by a requirement to keep within precise figures. Performance marketing is a advertising budgets and hit a target ROI. very competitive industry and commission It is understandable that merchants would levels play an important part in attracting also expect a level of forecasting for their affiliates. Competitor commission increases performance marketing campaigns, but or decreases are difficult to anticipate and there are factors in play that make it difficult can impact on sales, whether it be for a to forecast performance based campaigns. short term incentive or a permanent change. Search engine changes Fluctuations in affiliate The factor that has the greatest influence on forecasting is the availability of affiliate search costs and resource. Affiliates have to allocate and plan competitor competition their time across a number of merchants and scheduled projects which can often be Affiliate resource allocation pushed back and forth. Forecasting revenue increases for a quarter or even a month can always be subject to change depending Many affiliate sites are highly targeted when the affiliate can allocate time to work to specific verticals and product types; on the merchants programme. It is important this allows them to achieve high rankings to realise that affiliate marketing relies on on search engines and improve their third parties whose development priorities quality score for lower paid search costs. can change throughout the year.
  • 6. 04 Affiliate Dating Visit iabuk.net/affiliatemarketing Affiliate Marketing Handbook Why and How Should I Forecast? forecast to show the uplift achieved through new publishers or initiatives that have been Some merchants run their affiliate actioned. Another important consideration marketing campaign using finite marketing is to align the affiliate forecasts with the budgets. This leaves the potential of running marketing calendars so that the effects of out of budget to pay affiliates should they marketing campaigns can be compensated over deliver. It is important to understand for. that certain affiliate business models find it extremely difficult to turn off or reduce merchant activity due to budgets. For this Costs reason some level of forecasting is required to ensure sufficient budget is allocated to The final and most important elements of the affiliate channel. forecasting are the costs. These can all vary depending on the commercial agreements you have in place but the management/ technology fees, overrides, commissions When approaching affiliate forecasting and any performance bonuses all need to there are three key areas that need to be be calculated to generate an overall cost covered:- and effective ROI. Natural Delivery Tip for Marketing Managers Depending on the vertical, a performance marketing campaign can be expected to It’s all about the deliver between 5-40% of a merchant’s online sales or leads. The overall performance of EPC the merchant site will undoubtedly have an impact on growth; a fast growing brand will If you can’t make it work, carry some of that growth and can be built affiliates can’t make it work. into the forecast using year-on-year and month-on-month trend data. Look at your conversions, understand the route to sale and optimise the process so when Sales Uplift they deliver traffic it proceeds to Successful performance marketing cam- sales as efficiently as possible. paigns will not rely on the merchants profile to increase sales or leads. The role of the network, agency or affiliate manager is to add value to the programme through the process of affiliate recruitment and publisher development. This uplift can be reflected in a
  • 7. Affiliate Marketing Handbook Visit iabuk.net/affiliatemarketing Affiliate Dating 05
  • 8. 06 Affiliate Dating Visit iabuk.net/affiliatemarketing Affiliate Marketing Handbook Integrating Affiliate Campaigns competitive, affiliates will not be duped by By Owen Hewitson higher commissions if on-site conversion Client Strategist, and resulting EPCs are poor. Affiliate Window Separate From Other Forms Of Budget Because affiliates utilise a variety of promotional methods, activity that has From a budgetary perspective the CPA traditionally worked on a CPC or CPM basis model remains the distinguishing feature of can be run through the affiliate channel. For the affiliate channel. The principle that you example, PPC affiliates can mitigate the only pay when you get a sale makes affiliate risks inherent in paid search campaigns by marketing transparent and measurable. working on a CPA basis, thus shouldering the burden of monitoring spend and optimising campaigns. It is this pay-on-performance principle which supports the argument that budget allocated to the affiliate channel should be However, running an affiliate prog drawn not from the marketing budget but ramme goes beyond budget allocation. from the sales budget. Because affiliates It requires proactive management and are awarded only when sales are made the long-term commitment. Even if sales CPA model is risk-free from a merchant’s are generated quickly, a well-optimised perspective, assuming they have control programme will take months to reach over affiliate approvals. The main budgetary maturity. consideration is instead the level of affiliate commissions. De-duping De-duplication (or ‘de-duping’) is a practice However, from an affiliate perspective that has a simple principle: that merchants commissions are not the sole factor in have visibility over where their sales are determining whether to promote a merchant. coming from and control over who to A common fallacy is that merchants can award for those sales. If you are engaged buy more sales simply by increasing the in multiple online marketing channels (PPC, payout. Although commissions should be SEO, email, display), or with more than one
  • 9. Affiliate Marketing Handbook Visit iabuk.net/affiliatemarketing Affiliate Dating 07
  • 10. 08 Affiliate Dating Visit iabuk.net/affiliatemarketing Affiliate Marketing Handbook affiliate network, you will want to ensure that It is good practice to be transparent about you are attributing incoming sales to the your de-duping policy, as you would be correct channel so you can then intelligently about other key policies around PPC apportion spend to those different channels. and commission validations. Where de- duplication is introduced without notice The easiest way of automatically de-duping affiliates will see a negative impact on is by conditionally tagging each traffic source. conversion rates and EPCs. Conditional tagging is a simple, cheap and accurate way to determine the last referrer, and through which channel the customer came. This can help you avoid paying twice for the same sale. In deciding what you de- dupe against and the logic behind your conditional tagging it is worth thinking about the customer’s path to sale and what part each channel has played in referring that customer. For example, you may wish not to de-dupe affiliates against display in recognition that a click generated by the affiliate engages the customer more in the path to sale than an ad impression. Under this scenario a merchant may adjust the amount paid to each channel to split the cost between them. On the other hand, if a merchant de- dupes against all channels and the affiliate is the last referrer, they may choose to pay a higher commission given they are crediting the sale to a single channel only.
  • 11. Affiliate Marketing Handbook Visit iabuk.net/affiliatemarketing Affiliate Dating 09
  • 12. 10 Affiliate Dating Visit iabuk.net/affiliatemarketing Affiliate Marketing Handbook The different affiliate models Positive & Negatives of Each By Carla Arrindell Model Group Account Director, OMG Loyalty & Reward sites, offering con- sumers a reward in the form of cash or Affiliate marketing as a multi- points for purchasing via their website. channel discipline. They deliver significant volumes, with above average conversions and positively impact It is misleading to think of affiliate marketing on behaviour. as a single channel, rather it is a group of activities with a common remuneration PPC affiliates buy traffic through bidding model. That remuneration model facilitates on relevant keywords within search engines. some powerful benefits, one of which is They deliver high conversions and target enabling specific models of operation. effectively, however higher CPAs or hybrid remuneration models may be required, due Working with a network enables access to the increasing costs driven by search to various affiliate models, the most engines. common being; Content, PPC, Loyalty & Reward, Vouchercodes, Social media Content affiliates optimise the content of / blogs, price comparison and Email. their sites to secure positions within natural Each segment of affiliates brings unique search results, the ability to target niche advantages and disadvantages to a demographic is valuable. campaign. A good affiliate programme Social Media/Blog sites target social will use some or all of these segments, media members by profile and are strong according to campaign objectives. at targetting niche audience segments too. However, without a compelling offer, backed up with a strong call to action, users may not be lured away from their own content. Price comparison sites compare products by price, typically in a table. They can deliver substantial volumes of sales when the pricing of a product is competitive. Competition for ‘top of table’ positions means CPAs can be high.
  • 13. Affiliate Marketing Handbook Visit iabuk.net/affiliatemarketing Affiliate Dating 11 Vouchercode sites offer users a discount media affiliates as users reaching these code to be redeemed online against their affiliates are in a passive buying mode. purchase. The significant volume delivered can be easily controlled by changing the Broader consumer offer. Clearly mark expired codes so as not to deliver a poor customer Clearly defined criteria around qualifi- experience. cation for a discount or reward is crucial to ensure quality sales from Loyalty & Email affiliates promote to their own Reward and Vouchercode sites. The same databases, acquired through a variety of considerations don’t apply to PPC, SEO sources, they have a broad reach. Consider and price comparison affiliates. Delaying the source and level of detail of the data validation of sales for Loyalty & Reward to minimize over-promotion to existing sites can also be an effective way of customers. increasing quality. Maximize performance by continually reassessing and understanding volume drivers. How to effectively engage and manage these segments Tip for Marketing Managers Each model needs to be managed and engaged with differently, to ensure you get maximum results. Last Click is not a Interaction and insight panacea Advance warning of offer changes are now your customers K key to ensure content does not become behaviour and allocate out of date. Integration and communication your marketing budget about wider marketing activity both online accordingly. offline, will create further focus from SEO, PPC, Loyalty Reward and Vouchercode o not be afraid to look D sites. Social media, price comparison and emailer’s traffic is driven more by consumer beyond the last click to choice. reward particular types of affiliates. For example Define commissions and triggers paying email affiliates a accordingly PM or giving tenancies to C Compelling offers and strong call to top affiliates. actions are necessary for email and social
  • 14. 12 Affiliate Dating Visit iabuk.net/affiliatemarketing Affiliate Marketing Handbook It all points to a great opportunity Nectar has over 17 million users across the UK and we can put your business in front of them 24/7. Interested? Then join us today and take advantage of... Bonus point offers Voucher codes Gift finder Comparison shopping engine Nectar Toolbar powered by Yahoo! To discuss affiliate opportunities as well as the finer points of our loyalty scheme contact: Maureen McDonagh, Head of E-Commerce m.mcdonagh@loyalty.co.uk
  • 15. Affiliate Marketing Handbook Visit iabuk.net/affiliatemarketing Affiliate Dating 13 Incentivising affiliates Effective ways By Pete Rowe to incentivise affiliates Managing Director, affilinet • Increase the default commission rate. When done in the right way incentivising affiliates is a popular driver to improving he most effective and used in T the performance of an affiliate program. almost all affiliate programs. Raising A successful strategy can aid the affiliate default commission levels can be recruitment process, increase the exposure done on program launch to drive of the advertiser’s product or service online, awareness and grow the affiliate activate dormant publishers and build base, when re-launching on a new loyalty among the affiliate base. However network and for pre-determined in a crowded landscape incentivising periods of time to tactically boost effectively is becoming increasingly difficult revenue. and, when done in the wrong way, can even • Offer a tiered commission be detrimental to the success of a program. structure. S imple yet effective. The concept being, the more sales the affiliate generates, the higher the level of The benefits of a commission they receive. considered incentive strategy • Run prize draws and competitions. Advertisers sometimes offer the It is important to consider what you want to opportunity for affiliates to be achieve when putting together a strategy. entered in to a prize draw in return Incentives can also be used to tactically drive for each link they put on their sales in peak seasons, build momentum in website, sale they make or other quiet trade periods and can help to give an target achieved. Often used by advertiser a competitive advantage when large advertisers with big budgets negotiating coverage on larger sites. to spend on impressive prizes. Continued overleaf....
  • 16. 14 Affiliate Dating Visit iabuk.net/affiliatemarketing Affiliate Marketing Handbook Key Tips To Consider When Effective ways to incentivise affiliates Incentivising Affiliates Keep it simple - Time is precious, so • Offer a cash reward keep your incentive simple. Affiliates want his method can be ineffective as T to be able to immediately understand it often rewards the same affiliates the incentive offering and then simply and does not tend to incentivise implement a strategy. The size and scale high earning affiliates. Offering a of the incentive should reflect the amount of cash reward is only recommended time that affiliates will need to invest. with careful consideration, carefully consider the targets and incentives Be creative - Affiliates are offered set to ensure that the strategy does incentives on a regular basis and certain not leave you out of pocket. prizes are ubiquitous. iPods and small cash rewards may sound appealing but they • Offer own products as an don’t necessarily stand out from the crowd. incentive. Advertisers have been known to offer all R eliant on the advertiser under- inclusive holidays to Bali but being creative standing their affiliates, success is does not have to cost a fortune. If you have largely dependent on the appeal of a limited budget, think of something fun or the product in question. exclusive. Be inclusive - In many cases merchants offer incentives to the top performing affiliate to achieve sales targets in a certain trading period. However this excludes the longer tail of niche affiliates. Instead try to be more inclusive and offer scalable incentives based on individual affiliates increasing their own performance. Offer bespoke incentives - As with consumers the best method of appealing to affiliates is to target them individually. This method may be time consuming but will definitely pay off and result in optimum revenue generation. Managed strategically, it will also ensure that you are rewarding affiliates for pushing their sales efforts at different times across the sales cycle, and that you can negotiate top coverage spots on competing affiliate sites.
  • 17. Affiliate Marketing Handbook Visit iabuk.net/affiliatemarketing Affiliate Dating 15 Know Know who y re working with you’re you g Finding the right partners for your program is key. Contact the affilinet team for strategic advice. T. 020 7067 2480 I E. newbusiness-uk@affili.net AFF_a4u2_A5_2010_RZ.indd 1 04.11.10 10:32
  • 18. 16 Affiliate Dating Visit iabuk.net/affiliatemarketing Affiliate Marketing Handbook Objectives CASE STUDY • Motivate all affiliates, large or small, to lift sales into a higher sales tier. • Motivate new affiliates to grow their Red Letter Days and performance as quickly as possible. Affililate Window • Maintain long-term interest in the Red Letter Days programme and combat deliver affiliate seasonality drop-off. incentive programme • Increase the contribution of affiliate sales to overall web sales. to drive sales • Deliver a significant uplift in affiliate sales from 2008 to 2009. By Kevin Edwards • Ensure that the cost of the incentive Strategy Director, Affiliate Window programme was delivered on target. Overview Incentive programme structure, In 2009 Red Letter Days set itself the Q1-Q3 2009 challenge of delivering the best affiliate The primary aim was to reward a broad incentive programme in the market. The spectrum of affiliates of all sizes and key measures of success were to make types; smaller affiliates could significantly it available to all affiliates, ensure the uplift performance with the right tools and incentives were highly achievable and to recognition, while larger affiliates could be deliver to a target ROI. The result was a incentivised to invest greater amounts of quarterly incentive scheme combining time into Red Letter Days above competitor compelling prizes with an innovative programmes. approach. By rewarding affiliates based on their own performance rather than requiring The model adopted was to offer them to compete against each other, Red guaranteed prizes for hitting various sales Letter Days demonstrated understanding tiers, starting at just £1,000 per quarter that a successful affiliate programme should from Q1-Q3 and £1,500 in Q4 (around 8-12 treat affiliates as individuals. The incentive sales), ensuring that prizes were within the scheme was key in exceeding sales targets. reach of every affiliate. The quarterly incentive scheme was communicated to affiliates via the a4u forum, network email, the Red Letter Days affiliate blog, via new affiliate sign-up emails and on network signup pages.
  • 19. Affiliate Marketing Handbook Visit iabuk.net/affiliatemarketing Affiliate Dating 17 2009 Q4 incentives – the crucial Christmas gifting period Results Following the success of Q1-Q3 2009 it was Contribution of affiliate recognised Q4 2009’s incentive scheme sales to overall web sales would have to be the best yet. In addition: more than doubled. All affiliates who hit £1,000 worth of Affiliate revenue uplift was sales received a hamper delivered in time for Christmas. nearly threefold. Three holiday prizes were offered Affiliate revenue in 2009 including 7 nights in Bali for 2 and was significantly above two European city breaks. target. The cost of the affiliate incentive programme was well within the objective. Successful elevation of a One of the city breaks was given to the number of affiliates from affiliate judged to have produced the best Red Letter Days landing page, while the mid to top performers. other was drawn from a pool of the top 5 most improved affiliates and the top 5 best new affiliates signed up after 15 September 2009. The Bali holiday prize was determined by a prize draw, but with a twist. Affiliates earned tickets into the draw in return for fulfilling certain criteria e.g. uploading a particular type of creative, or selling a particular product, rather than rewarding sales results alone. Winners were announced via videos posted on youtube. Feedback for Red Letter Days’ Christmas incentive was hugely positive and received bloggers’ praise.
  • 20. 18 Affiliate Dating Visit iabuk.net/affiliatemarketing Affiliate Marketing Handbook
  • 21. Affiliate Marketing Handbook Visit iabuk.net/affiliatemarketing Affiliate Dating 19 Working with networks, agencies or in house Having a direct relationship with the affiliates By Alistair Nichols enables you to negotiate the commissions Head of Agency Sales, directly and possibly give yourself room to Webgains offer more than your nearest competitor should you choose to pass on the saving to As a merchant, there are roughly speaking your affiliate partners. three avenues to choose when launching your affiliate program. Firstly, you could Downsides include difficulty in recruiting the always go it alone, purchase a white label biggest affiliates and the labour intensive tracking solution and set up your own in- work involved in this process should not house network. Secondly, you could use be underestimated. Affiliates will only join your existing agency or hire a specialized your program if they have 100% trust that affiliate management agency to run your sales are tracked and that they will be paid program. The last option is to join an affiliate promptly and correctly. network and opt for a self managed or account-managed solution utilizing the In-house programs have worked very well network’s tracking and reporting technology, for the likes of Amazon (with huge in-house experience and trusted payment solutions. resource) and now eBay but in the latter’s case this was after years of running a very Each option offers benefits and successful program on a network and disadvantages. The right solution for you building up trusted relations with affiliates. will be dependent on numerous factors including: which activities you want to be personally involved with, the business you are in, the amount of control you require over your brand usage and your marketing Working with an Agency budget. Working with an agency allows you to establish a relationship with them which allows them to know about your brand, marketing strategy and brand values. An Running a Program In-house agency is also more likely to have a view of the fully integrated marketing plan and The main benefit to running an in-house therefore integrating the affiliate strategy program is the perceived cost saving. should be seamless and efficient.
  • 22. 20 Affiliate Dating Visit iabuk.net/affiliatemarketing Affiliate Marketing Handbook Employing an affiliate management agency for a detailed Service Level Agreement and has further benefits as they are the compare and contrast the offerings. specialists in this field. They will have much more knowledge and experience managing With regards to technology, does your affiliate campaigns. You would be able to network offer “Whistles and Bells” or are leverage long established relationships with they just tracking your sales and paying hundreds, if not thousands, of established your affiliates? Can your potential network affiliates. manage Voucher Codes effectively? How do they police your PPC policy? What fraud protection technology is there on offer? Running a program with a network The most common way to launch Tip for Marketing Managers an affiliate program is to join an affiliate network. When joining an affiliate network, you are tapping into the network of affiliates built up after many years in the industry, Brand control as well as having instant access to the knowledge and experience of the network’s eep an eye on the quality K staff. Remember, that it is in the interest of of the sales you are being the affiliate to be joined to every network so sent. Put in place processes it is very rare indeed that one network has exclusive deals with the biggest affiliates. to check the real value of the generated sales. When choosing a network to work with, you should concentrate on looking at their record of customer service both for you and your affiliates and their record of developing their technology. Using a network means paying (in most cases) a 30% override premium and therefore you want to know that this money will be spent wisely. Ask your network how many accounts your account manager works on, as well as how much time will be dedicated to optimizing and marketing your program? If possible ask potential networks
  • 23. Affiliate Marketing Handbook Visit iabuk.net/affiliatemarketing Affiliate Dating 21
  • 24. 22 Affiliate Dating Visit iabuk.net/affiliatemarketing Affiliate Marketing Handbook Using Affiliates as Partners considerably sized affiliate programme. By Sanjit Atwal Network Director, Then there are the commercials... Tradedoubler The metric of choice for the savvy affiliate is EPC – Earnings Per Click. “What, on Section I: Introduction average, do I earn for each click I send through to you, Mr Advertiser?” To warrant One word we will not be using in this an affiliate giving you valuable real-estate section of the IAB Affiliate Marketing on their sites there must be a compelling Handbook is ‘Supplier’. Effective affiliate argument for them to do so. marketing has long evolved away from the setting of hierarchical frameworks in which Section III: De brief advertisers, agencies and networks take unnecessary liberties with publishers. So, Affiliates can provide an instant measure- with this in mind, this chapter will help frame ment of success of your business – a gauging how best to use affiliates as your partners. of market appetite for the latest range your brand have deployed.As previously Section II: The Brief mentioned, affiliates will be working with many merchants and, as such, will have This briefing can take many forms but access to competitive market information the most effective in terms of driving that would be both valuable and, without sales and leads for your products is the a good relationship, otherwise inaccessible sharing of your marketing and promotions to you. You can ask for an intelligent calendar. Regularly communicating offers, benchmark of where your offering sits in the discounts, voucher codes and the USPs affiliate channel and any recommendations of your products will ensure that you are on how to increase the quality and quantity gaining a greater market share on affiliate of sales. sites through the process of education (remember – affiliates can choose who they From the affiliate’s point of view, the decision do or do not promote!). to work closely with a trustworthy advertiser to optimise offers for their users will be an This communication strategy brings with it easy one. Use this information wisely to a commitment of openness of agenda with constantly refine your affiliate proposition regards to remuneration, technical set-up into a market-leading offering. The other and de-duplication. All of which build trust benefit of such an approach is that you with your valuable virtual sales-person. will be bringing your affiliates closer to your Your affiliate network account manager (if brand – something which bodes well for the you have one) will be a key in this process successful long term stability and scalability – especially if you are aiming to have a of your plans in the affiliate channel.
  • 25. Affiliate Marketing Handbook Visit iabuk.net/affiliatemarketing Affiliate Dating 23 Over 1,900 advertisers Over 128,000 active publishers Over 154 million unique visitors per month Europe’s No.1 Performance Marketing Specialist Sanjit.Atwal@TradeDoubler.com Network Director Paul.Wright@TradeDoubler.com Agency Services Director Ricki.Jones@TradeDoubler.com Head of Affiliate Sales TradeDoubler 24th Floor Portland House Bressenden Place London SW1E 5BH Tel: +44 (0) 207 798 5800 Fax: +44 (0) 207 798 5801 Sales.UK@TradeDoubler.com
  • 26. 24 Affiliate Dating Visit iabuk.net/affiliatemarketing Affiliate Marketing Handbook Affiliate Marketing and Creativity By Fiona Robertson The key points for Head of Affiliates developing banners are: Performance, Bigmouth Media • Well branded – have a logo or Not usual bedfellows brand name in most frames ut remember an absolute affiliate B A poor creative toolkit is a handicap. marketing no-no is an URL on the Today affiliates have the choice of thousands creative of merchants and a good toolkit helps with affiliate recruitment, retention and helps • Eye catching - have a message affiliates accurately represent and promote in mind and get this across your brand. effectively • A strong call to action – think of this from a consumers’ At the very least affiliates perspective and talk their should have banners in gif and language flash format in the following Get a quote’, ‘Download’, ‘Open ‘ sizes: an account’, are all good – “More information” is not! 468x60 • Contain price points or USPs – 125x125 shout about where your brand is strong 120x600 120x60 234x60 Affiliates will request creatives in other formats that fit their site so it is a good idea to bear this in mind, be flexible.
  • 27. Affiliate Marketing Handbook Visit iabuk.net/affiliatemarketing Affiliate_Marketing_Handbook_A5_Advert copy.pdf 1 11/10/2010 14:50:25 Affiliate Dating 25 Is your affiliate marketing as effective as it could be? C M Y CM As a cross-channel agency, at bigmouthmedia MY we know how to look at your online strategy as CY a whole to make sure you get the best out of CMY digital channels. K We are experts at calculating ROI, maximising GET synergies and integrating affiliates with SEO, EAF LVE CRH AFTIIIATES PPC, display and social media. And, thanks to our network neutrality, we only work with the partners that truly fit your program. WISTE FIONA ROBINRTTHSISN’S E E O R CHAPTE BOOK If you’re ready to take your affiliate marketing HAND to the next level, come and speak to us. We bet you’ll like our affiliate management style – and the results that it achieves. www.bigmouthmedia.com | 0845 130 0022 | hello@bigmouthmedia.com www.bigmouthmedia.com | 0845 130 0022 | hello@bigmouthmedia.com S E OO • • PP P C •• AAF F IFLII L ITA T E• SD I• S P LI A YP •L A O C •I ASL OMCEIDAI L •MO N LII A E • PO N LWI O REL D W I D EW O R L D W I D E SE P A ES D S SY A ED N R • N PR •
  • 28. 26 Affiliate Dating Visit iabuk.net/affiliatemarketing Affiliate Marketing Handbook Give your affiliates a solid set of generic The availability of feeds has allowed creatives summarising your brand and offer other tailored creative solutions to appear. tailored messages for key offerings. Give Content Widgets are an example of creatives affiliates the option to select what is best for that affiliates can utilize highlighting specific, their audience. Tactical messaging works; relevant products. A standard 120x600 ad when there is a sale; give affiliates the unit can showcase one or more product creative to promote this. offerings. If a feed is in real time then these ads can be dynamically updated to show Once your set of creatives is complete do the most relevant product. not leave them untouched until the end of time. Creative gets old. A quarterly/ seasonal refresh is best practice. Enabling search or booking banners Affiliates have a knack of using your best for the affiliate channel shortens the creatives but one of the most effective consumer journey, increasing conversions. techniques for conversion are text links. For example a hotel booking banner from Pre-written text links will give your affiliates a merchant’s site on an affiliate’s allows an easier route to displaying your key users to select location, dates of stay, etc. messages and promotions. When checking availability the users will be taken to search results on the hotel site, rather than the homepage or hotel page – increasing the chance of that sale. Affiliates are creative and entrepreneurial so tap into this Product feeds, or data feeds, have in recent years become a key method for many affiliates. Initially used in price comparison, a feed allows affiliates to be provided with live information – imagery, descriptions, price points, etc. A feed is generally provided to a network in CSV or XML format – and the more fields included within a product feed the better. Common feed errors include incorrect pricing, out of date stock information, bad descriptions and incorrectly categorized products. Real time or regularly updated feeds with accurate information will stand you in good stead with affiliates.
  • 29. Affiliate Marketing Handbook Visit iabuk.net/affiliatemarketing Affiliate Dating 27 Ask u s indep for an progr endent am re view Accelerate your affiliate marketing program • The affiliate management agency with global reach. Contact us: • Dedicated, exceptional, proactive account management.  nonstopConsulting • Recently launched London office bringing nonstop’s Lemon Studios expertise to the UK market 2nd Floor, 85 Clerkenwell Road London EC1R 5AR • Fully scalable local and international affiliate management services paid search solutions  tel. +44 020 7681 4049 www.nonstopconsulting.co.uk • Proprietary management technology powering your  Follow nonstopConsulting UK program. on Twitter @nsCi_UK • We listen, understand, devise and deliver winning solutions to exceed your commercial objectives. info@nonstopconsulting.co.uk
  • 30. 28 Affiliate Dating Visit iabuk.net/affiliatemarketing Affiliate Marketing Handbook 851 ForUSC,oneofourclients,weachieved % an851%Q4yearonyearincreasein affiliatesalesasaresultofourspecialist affiliate programme management. “Themanagementofaffiliateactivityandthe salesachievedby7thingsmediainthepastyear havebeenastonishing.” LyndsayMcGonigle,HeadofeCommerce,USC …doyouwant7thingsmedia toscaleyouraffiliatesales? T: 020 3384 5650 E: hello@7thingsmedia.com www.7thingsmedia.com
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