More data on this topic available from:: How to Use Affiliate Marketing to Extend Your Subscription...

More data on this topic available from::

How to Use Affiliate Marketing to Extend Your Subscription Marketing Reach Online

Peter FigueredoCEONETexponentTuesday, May 8, 2007


2 © 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you.

Outline

About NETexponent Affiliate Potential The Basics Case Studies

Brand Protection – The Financial Times Harness Loyalty Power – NY Times Manage Retention – NY Times Holistic Search and Affiliate -

Audible.com Emerging Trends



About

Founded January 2001 NYC headquarters Deep agency roots Performance Marketing Agency

specializing in Affiliate and Search

Practice Areas Subscription Marketing Financial Services Online Retail



Affiliate Potential



Affiliate Potential: Valuable Traffic comScore Networks panel of 1 million

affiliate marketing consumers in the US During the 2nd Quarter of 2006, affiliate

shoppers spent 7% more than the average consumer in internet sales

Affiliate marketing consumers were 43% more likely to convert into a sale than consumers directed by other referrals

Affiliate marketing shoppers were 17% more likely than the average Internet user to have average household income of greater than $75,000

32% of affiliate shoppers were between 45 and 64 years of age, and were 4% more likely to have children



The Basics

Technology Staffing Core Strategies

Report Card / Competitive Analysis Commission Strategy Communication Strategy Recruitment Strategy Optimization Strategy Quality Assurance Strategy



The Basics: Keys For Success

Relationships are the major key to success

Treat them as true partners

Grow your programs as you would grow a sales force

“Kaizen”

Success requires: Relationships Compelling consumer

offer Affiliate automation Motivation Policing of sites Frequent contact Proactive optimization Flexibility Speed Active recruitment Integrity



The Basics: 4 Main Affiliates

1. Coupon provide

consumers with savings

2. Loyalty use point

systems to motivate consumer action

3. Search Arbitrage buy search

keywords on behalf of advertisers

4. Vertical Content specialize in a

particular niche



The Basics: Meet The Top Affiliates


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© 2007 MarketingSherpa, Inc. This presentation is not for distribution. Thank you.

Case Study: Brand Protection

Goal = grow subs without brand risk

Tactics used: Custom terms and conditions Affiliate rescreen Top affiliate monitoring Daily monitoring (VSD) Measured recruitment efforts Strict rules for email and downloads Allow CJ to weed out inactive affiliates Dedicated affiliate QA team Small manageable network

Result = We have successfully grown their affiliate volume and protected their brand for 5 years

Affstat 2007 Report


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New publishers must opt into special terms and conditions before joining the FT affiliate program

The terms and conditions state that publishers must:

Have a privacy policy included in their websites Have no material which is illegal, defamatory or

discriminatory Drive traffic from North America and/or South

America According to the terms and conditions FT has the

right to: Review and approve the use of the FT trademark Approve / Disapprove any pending payment due to

publishers Review materials for an email campaign Terminate the agreement without prior notice to

the publisher Modify terms within the contract from time to time


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Source: Quantcast.com


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Case Study: Harness Loyalty Power

Goal = Increase subscription volume without sacrificing retention rates

Tactics Used: Scrutinize incentive sites for relevant

audience demographics Assign unique tracking to each incentive

site to monitor retention Use test periods for less established

affiliates to gauge performance before full launch

Limit incentive structure provided to consumers based on cost goals

Account for ABC guidelines with incentive traffic


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Case Study: Manage Retention

Goal = Grow volume of valuable subscribers based on retention rates

Tactics Used: Incentivize paid subscriptions Tailor consumer offer to paid subscriptions Marry front end and back end tracking Optimize top sites based on retention Remove/reduce low retention affiliates Adjust commissions periodically based on

retention rates Evaluate performance based on total costs

(media + agency + tech + incentive) Result = Affiliate program retention

rates increased 20% in less than 6 months


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Case Study: Harness Loyalty Power

Result = Loyalty affiliates helped us achieve our 12 month volume goal in only 5 months and retention rates remained at levels consistent with other online marketing channels

1 2 3 4 5

Do

llars

Revenue

Operational Costs

$

Custom Recruited

Sites92%

General Affiliates

8%


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Case Study: Holistic Search/Affiliate

Goal = Grow affiliate search arbitrage volume without hurting internal PPC search efforts

Tactics Used: • Encourage affiliates to bid on generic terms

(audio books, audio book download, etc.)• Support a controlled group of top affiliates

and media partners on trademark terms, • Monitor key terms for affiliate violators

– Affiliate self policing helps• Utilize “transitional affiliate” for long tail

build out • Managed by seasoned affiliate staff


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Agency PPC listing

Affiliate PPC

listings

Competitors


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Normal seasonality

Result: 12% over goal of new subscribers 35% reduction in cost per new

subscriber 58% reduction in cost per sub in search Able to dominate valuable keywords Added ~500K keywords to search

campaign

Hol

istic

Sub

V

olum

e


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Emerging Trends

Google PPA will complement affiliate efforts CPA Ad Networks become “Affiliate

Networks” Lack of tech advancement leaves door open

for affiliate widgets Long tail concept justifies large affiliate

programs Affiliate tech provider value continues to be

challenges Holistic search and affiliate strategies spread Advertisers struggle to calc duplication and

decide which channel should get credit for sales


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Credit/Thank You

Conference Attendees Receive A Free Affiliate Competitive Analysis

Contact Me:

Peter FigueredoNETexponent CEO212-981-2700 ext [email protected]

More data on this topic available from:: How to Use Affiliate Marketing to Extend Your Subscription...

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