AFFILIATE MARKETING

by Trootrac Media Pvt. Ltd

What is Affiliate Marketing?

Affiliate marketing is a type of performance-based marketing inwhich a business rewards one or more affiliates for eachvisitor or customer brought by the affiliate's own marketingefforts

•Merchants look to earn revenue from sale of their products or services, pay affiliates (publishers) who want to earn revenue from placement of product banners or text links on their site.

•Merchants only pay affiliate partners for results, such as a lead or a purchase “pay-for-performance” or other performance criteria.

Who are the Key Players?

There are three key players in any affiliate program:

1. The Merchant (Advertiser)

2. The Affiliate (Publisher)

3. The Affiliate Network

Web Publishers that post ads for merchant

A Company that finds affiliates for merchant

Who is a Merchant

A company/organization who wants to sell their product/services.

What is An Affiliate Network?

An Affiliate Network is a third party that acts as liaison between Affiliates and Merchants

•Allows Affiliates to find Merchants which are suitable for their site

•Allows Merchants to find Affiliate sites that expands reach to their target audience

• Services include tracking technology, reporting tools, payment aggregation and processing

•Provides a creative bank or repository for storing and accessing creative assets

• Is no cost for an Affiliate to join

How Does Affiliate Marketing Works?1. Affiliate obtains Merchant creative from Affiliate Network

and loads to their site 2. Consumer visits Affiliate’s site and clicks Merchant banner3. Cookie is set on Consumer’s browser which identifies

Merchant, Affiliate and link4. Consumer is directed to Merchant site5. Affiliate ID is captured by Merchant in referring URL6. Consumer makes purchase from Merchant7. Cookie information sent to Affiliate Network 8. Merchant transmits sales file to Affiliate Network which

includes Affiliate ID9. Affiliate Network tracks sales transactions with Affiliate ID

and pays Affiliate

Top Industries in Affiliate Marketing

1. Financial Services

2. Travel

3. Retail

4. Telecoms

5. Broadband

6. Gaming

7. Recruitment

Affiliate Program Models

• CPC – Cost per click – The affiliate is paid for every click which he/she generate

• CPA – Cost per acquisition – The affiliate is paid a fixed amount for every conversion which he/she generate

• CPS – Cost per sale – The affiliate is paid a certain amount of transaction value for every transaction which he/she generate

• CPL – Cost per lead – The affiliate is paid a fixed amount for every filled up query form

• CPM – Cost per mille (a.k.a. Cost per thousand impression) – The affiliate is paid for every thousand impression which he/she serve on their website/blog

• CPO – Cost per open – The affiliate is paid for every mailer opened

• CPV – Cost per Visit – The affiliate is paid for every visit/session they generate for a website

Mediums used by Affiliates

Search

Email marketing

Portal

Price comparison

Rewards/ Loyalty

Shopping Directories

Content

Types of Affiliates Sites

Shopping – site are virtual malls. The consumer shops for various brands and products on site. These sites are not driven by particular coupon or deal offer

Coupon/Deal – most popular affiliate model. These sites are shopping sites that require merchant to provide consumer with either a coupon, percent off savings, or free shipping offer

Comparison Shopping – sites sell items using a comparison model. These sites usually require a data feed of merchants’ products.

Content – sites are usually not shopping sites. Consumers go to sites because the content is of particular interest. Sites to particular product contained in site

Search – affiliates promote merchants via search engine marketing, using either natural or paid search practices.

Blogs/Forums – sites post or feature article that focus on a particular product or merchant and include an product affiliate link to the product.

Infographic

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