Affiliate Marketing Within The Media Mix
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Affiliate Marketing in the Media Mix
Ewan DarbyBusiness Director, AffiliatesNeo@Ogilvy
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A quick show of hands...
If you feel confident that you know the role of an agency in affiliate marketing
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The role of an agency is...
Defined by our client’s requirements...
• Integrated strategy with other media• 3rd party tracking and performance analysis• Planning• Network management• Reporting• Affiliate recommendations
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The merchant/agency/media relationship
Media briefed by agencyAd networks, SEO, SEM, Email,
Affiliates
Agency briefed by merchant
Planning and strategy to deliver objectives
Merchant
Sales and Marketing Objectives
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According to the A4U web site this session is...
...a discussion on how Affiliate Marketing fits within the online marketing mix. To assist affiliates specifically in understanding why decisions are made by agencies and merchants and how they are seldom made in isolation. Why merchants may even question the value of some of the internal channels such as vouchers, paid search or cashback and where and why affiliates are called into question. An understanding of these issues will enable affiliates to tailor their strategy to meet client demands and attempt to future proof strategy
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Offline
Online
Planning
Strategy
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Building media strategy
Awareness
Consideration
Conversion
Purchase
Loyalty
Building awarenessCreating demandPositioning brand
Capture demandConverting consumers
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Building media strategy
Awareness
Consideration
Conversion
Purchase
Loyalty
Offline mediaOnline display
Search
SearchAffiliates
CRM
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Identifying and Targeting the Audience
One-time Customers
Product Purchasers
Propensity to
purchase
Merchant Customers
Retargeting
Search - Brand
Search - generic
Affiliates
Display media
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Online Media Planning - considerations
ROI•Overall target•Channel target
Offline Activity•Media used•Time frames
Competitors•What are they doing?•How they’ve done it
Audience•Current customers•Target customers
Budget•Can everything be achieved?
Time period•Weeks, months, years?
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A simplistic plan...
• Search and affiliates perform an “always on” task• Display provides tactical support around key
promotions• Re-targeting ensures maximum value is achieved
from display expenditure• Email can support tacticals as well as being an
efficient CRM vehicle
Re-targettingDisplayEmailSearchAffiliates
Month 1 2 3 4 5 6 7 8 9 10 11 12
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A simplistic ROI...
Each channel within the plan needs to demonstrate value to the performance of the overall campaign (ROI)Display has a lower ROI than search and affiliates as their function is higher up the sales funnelTrying to understand value in isolation is difficult and may provide a skewed view of marketing performance
Re-targetting 7.9Display 4.4Email 5.3Search 4.5Affiliates 5.7Total 5.2
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Affiliate marketing in the media mix
Agencies presenting affiliate marketing within the media planning mix means:1. The channel is a serious
consideration for marketeers
2. It receives the support that other media channels have enjoyed
3. Merchants understand the opportunity and the risk better than ever
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Affiliate marketing in the media mix
But this means greater scrutiny
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Adding to the mix – a marketeer’s concerns
• What does affiliate marketing add to the media
mix?
• Are all affiliates appropriate?
• How can I measure channel effectiveness?
• How can I measure affiliate effectiveness?
• What is the implication of de-duping?
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An affiliate shaped space
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De-duplicating sales
• De-duplicating sales means agencies and
merchants can effectively segment sales
• It ensures each channel reports last click sales
• There are caveats
1. It should not be used as a cost-saving measure
2. Savings made should be put back in to the CPA
3. It’s not right for every client
4. It’s not perfect
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Search
Affiliate
Display
Non de-duped programmeTra
cking
Tag
TIME
Trackin
gTa
gTra
cking
Tag
SA
LE M
AD
E
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A de-duped programmeFlo
od
light
Tag
SA
LE M
AD
E
TIME
Search
Affiliate
Display
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De-duping
One sale
Affiliate
DisplaySearch
Considerations
• Which data source is “King”?• Who will it affect most?• What does the client want from it?• How can it be managed professionally and effectively?• What are the benefits for affiliates?
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Filtering affiliate partners
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Weighing up the opportunity
• How will a search affiliate affect our own paid search activity?
• Are voucher codes claiming the last click unfairly?• How do email affiliates derive their lists?–Can they be de-duped against a merchant’s?
• How would a loyalty affiliate impact a merchant’s own loyalty programme?
• If a merchant’s prices are not competitive is it damaging to the brand to appear on price comparison sites?
• Are meta-search and comparison affiliates populated by habitual brand-switchers?–Are they valuable customers, or will I lose them this
time next year?
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Getting the right balance – affiliate selection
CoverageSales
VolumesChannel
effectiveness
ValueCost
Incremental
Channel erosion
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Selling in to the agency and client
1. Have you spoken to the network?
2. Why do you want to promote the brand?
3. How will you promote the brand?
4. What’s in it for the merchant?
5. Are they doing something similar already?
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Further questions and comments