Affiliates Summit 2

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Information about Affiliates Summit 2

Published on August 17, 2007

Author: p2045i

Source: slideshare.net

Introduction to Affiliate Marketing for Merchants Forrest Schaaf, Partner, Schaaf Consulting (Moderator) Dan Chiss, Director, Affiliate Strategy, Performics Peter Figueredo, CEO and Co-Founder, NETexponent Rob Key, CEO, Converseon John Tomaszewski, VP Policy and Legal, TRUSTe

Affiliate Segmentation The devil is in the details Dan Chiss Director, Affiliate Strategy & Publisher Development Performics

It’s Marketing! Affiliate marketing requires execution of traditional marketing techniques Success is not always about discovering new techniques Advanced affiliate marketing lies in strong execution Success relies on the details

Affiliate marketing requires execution of traditional marketing techniques

Success is not always about discovering new techniques

Advanced affiliate marketing lies in strong execution

Success relies on the details

Why Segmentation Matters Affiliates tend to be a heterogeneous group, with different business models, audiences, motivations, and behaviors Affiliates are time-strapped and inundated with communications, offers, and incentives Segmentation can lead to greater efficiency, productivity, and profitability

Affiliates tend to be a heterogeneous group, with different business models, audiences, motivations, and behaviors

Affiliates are time-strapped and inundated with communications, offers, and incentives

Segmentation can lead to greater efficiency, productivity, and profitability

Standard Affiliate Segmentation Schema By performance (high, medium, low) By classification/business model Loyalty/Rewards Shopping/Promotions, Community and Content Search Specialists By content category (e.g., Technology, Sports & Outdoors, Fashion) By site demographics

By performance (high, medium, low)

By classification/business model

Loyalty/Rewards

Shopping/Promotions,

Community and Content

Search Specialists

By content category (e.g., Technology, Sports & Outdoors, Fashion)

By site demographics

Advanced Segmentation Ideas By age (how many days since an affiliate joined your program) By recency (how long since an affiliate last generated a lead or sale) By customer quality/profitability (% of new-to-file, high LTV, etc.) By products purchased (on a sku level)

By age (how many days since an affiliate joined your program)

By recency (how long since an affiliate last generated a lead or sale)

By customer quality/profitability (% of new-to-file, high LTV, etc.)

By products purchased (on a sku level)

Affiliate Segmentation Rules of Thumb Make sure your segments are distinct, actionable, and measurable Segments need to be large enough to matter Start simple – add complexity over time

Make sure your segments are distinct, actionable, and measurable

Segments need to be large enough to matter

Start simple – add complexity over time

I’ve Created Segments, Now What? Create and test different versions of email newsletters against each segment Content and personalization can have a significant impact on response rates Utilize pricing and incentives to motivate and reward best behavior Test, measure, refine, test again

Create and test different versions of email newsletters against each segment

Content and personalization can have a significant impact on response rates

Utilize pricing and incentives to motivate and reward best behavior

Test, measure, refine, test again

Outsourcing Peter Figueredo CEO & Co-Founder NETexponent

Benefits Of Outsourcing Outsourcers can provide affiliate managers with much needed bandwidth and expertise in affiliate recruiting and optimization Sometimes Always Exclusive Hybrid Fixed Costs Easy Difficult Severable None Full Overhead Amassed Limited Negotiation Diverse Limited Cross Client Major Minor Skin-in-Game Medium Limited Relations Diverse Limited Experience Yes No Staff Oversight Diverse Limited Data Outsource In-House

Affiliate Outsourcing RFP Questions How long have you been managing relevant programs and relevant tech platforms? What client service background do you have? What is the average length of your client engagements? What programs do you currently manage? What is your current client to staff ratio? How many staff hours can you guarantee? How do you minimize fraud? What relevant partnerships do you have? How will you protect my brand? Do you offer category exclusivity? Please provide bios of my team. Please provide relevant client references. Contact ( [email_address] ) For All 40 Questions

How long have you been managing relevant programs and relevant tech platforms?

What client service background do you have?

What is the average length of your client engagements?

What programs do you currently manage?

What is your current client to staff ratio?

How many staff hours can you guarantee?

How do you minimize fraud?

What relevant partnerships do you have?

How will you protect my brand?

Do you offer category exclusivity?

Please provide bios of my team.

Please provide relevant client references.

Affiliate Management Outsourcers Converseon Commerce 360 Forge Business iMarketing NETexponent Partnercentric Schaaf Consulting Shawn Collins Consulting

Converseon

Commerce 360

Forge Business

iMarketing

NETexponent

Partnercentric

Schaaf Consulting

Shawn Collins Consulting

Integrating Search and Affiliate Strategies Rob Key, CEO, Converseon [email_address]

Truisms… According to Shop.org studies, search and affiliate marketing are the two most efficient online acquisition channels (after in-house lists) Synchronizing search and affiliate provides helps ensure greater efficiencies. Bid strategies Meta-search Natural optimization “ Long tail” keywords Brand protection

According to Shop.org studies, search and affiliate marketing are the two most efficient online acquisition channels (after in-house lists)

Synchronizing search and affiliate provides helps ensure greater efficiencies.

Bid strategies

Meta-search

Natural optimization

“ Long tail” keywords

Brand protection

Three Eras of Search/Affiliate Strategies Era 1 “The Wild West” Many companies basically outsourced much search to affiliates to pay on performance basis. Affiliates Arbitraged. Era 2 “The Taliban Era” Companies take hold of search strategies and begin precluding affiliates from bidding on relevant keywords (esp. branded)

Era 1 “The Wild West”

Many companies basically outsourced much search to affiliates to pay on performance basis. Affiliates Arbitraged.

Era 2 “The Taliban Era”

Companies take hold of search strategies and begin precluding affiliates from bidding on relevant keywords (esp. branded)

Era 3: Our Emerging Era Era of “Shelf Space” Search and affiliate more strategically utilized to maximize real estate on SERPs. More strategic policies to set bid limits on critical keywords (not bidding against brand) Handpicked, controlled, trusted affiliates brought into more integrated efforts (natural and PPC) Utilization of select content-oriented affiliates (including bloggers) for “long tail” keywords Fills void that could be filled by competition Utilize “direct link” technologies to boost linking, where possible (is your affiliate link direct or redirected?) Focus on “Shelf Space” Maximization

Era of “Shelf Space”

Search and affiliate more strategically utilized to maximize real estate on SERPs.

More strategic policies to set bid limits on critical keywords (not bidding against brand)

Handpicked, controlled, trusted affiliates brought into more integrated efforts (natural and PPC)

Utilization of select content-oriented affiliates (including bloggers) for “long tail” keywords

Fills void that could be filled by competition

Utilize “direct link” technologies to boost linking, where possible (is your affiliate link direct or redirected?)

Focus on “Shelf Space” Maximization

Competitive Advantage Requires “Shelf Space” Approach One top listing only captures a percentage of potential traffic for a given keyword. According to Jupiter research, 75% of search engine users never scroll beyond the first page of results. A key approach for some leading brands for highly converting/valuable keywords is occupy as much of the top listings – the valuable “shelf space” – as possible by enabling affiliates to compliment brand property strategies

One top listing only captures a percentage of potential traffic for a given keyword.

According to Jupiter research, 75% of search engine users never scroll beyond the first page of results.

A key approach for some leading brands for highly converting/valuable keywords is occupy as much of the top listings – the valuable “shelf space” – as possible by enabling affiliates to compliment brand property strategies

Search Engine Marketing – Shelf Space Defined Paid Search Natural Results Affiliate Listing

Elements Take control of your Search Engine Result Pages (SERP). Allowing a few trusted affiliates to bid along with you limits the amount of control you cede to Google, other search engines and competitors to correctly represent your brand to consumers. Force unwanted or confusing natural results (celebrity gossip and competitors) below the fold.

Take control of your Search Engine Result Pages (SERP).

Allowing a few trusted affiliates to bid along with you limits the amount of control you cede to Google, other search engines and competitors to correctly represent your brand to consumers.

Force unwanted or confusing natural results (celebrity gossip and competitors) below the fold.

Elements Major Search Engines allow only one paid ad per domain/per keyword Using a few trusted affiliates can: Increase your exposure on SERP’s by adding more ads for merchant on each search term. Push your competitors out and limit their exposure to Your customers. Limit customer confusion by allowing affiliates to add correct information on your SERP’s

Major Search Engines allow only one paid ad per domain/per keyword

Using a few trusted affiliates can:

Increase your exposure on SERP’s by adding more ads for merchant on each search term.

Push your competitors out and limit their exposure to Your customers.

Limit customer confusion by allowing affiliates to add correct information on your SERP’s

Formulating a Strategy What bid limit for brand keywords? How to tackle long tail keywords? Where (what keywords) to focus efforts maximize shelf space? (most valuable traffic)? Fully leverage policies across affiliates Consider a blog strategy to optimize for long tail keywords as well

What bid limit for brand keywords?

How to tackle long tail keywords?

Where (what keywords) to focus efforts maximize shelf space? (most valuable traffic)?

Fully leverage policies across affiliates

Consider a blog strategy to optimize for long tail keywords as well

SERP Visibility Map Take credit cards Stores online Buy online Credit cards Merchant account Keyword Phrases Other Intended audience http://www.zend.com/zend/tut/tutorial-Company.php 10 Neutral What Is Company? http://www.htmlgoodies.com/beyond/Company.html 9 Other freshmeat.net: Project details for Company Shopping Cart http://freshmeat.net/releases/166124/ 8 Negative Company - the "Pal" You Pay http://www.ygoodman.com/Company.html 7 Friendly Company Developer Network Blog http://Company.typepad.com/ 6 Hack.com: Company: Stay Safe When Buying Online http://www.hack.com//Company/buyer/protection.html 5 Negative Tongkat Ali, unrestricted sex – Company, restricted account http://www.aboutCompany.org/ 4 Negative CompanyWarning.com - Company Warning to Investors, Merchants ... http://www.Companywarning.com/ 3 Negative CompanySucks.com is where you will learn the abuse, fraud, & evil ... http://www.Companysucks.com/ 2 Company Company - Welcome http://www.Company.com/ 1 Status Site title “ Company” – Top Ten Listings

Thank You [email_address] (646) 567-8228

Affiliate Marketing, Adware & Spyware What you don’t know can hurt your brand. John P. Tomaszewski, Esq. VP, Legal, Policy & Compliance, TRUSTe February 4, 2005

What You Don’t Know Can Hurt Your Brand Adware/Spyware/Malware reaching Epidemic Proportions Adware/Spyware affecting 80% of home computer users* 80% of those with affected computers didn’t know these programs were installed Consumers losing trust in software delivered over the internet * Per AOL/NCSA Online Safety Study, October 2004

Adware/Spyware/Malware reaching Epidemic Proportions

Adware/Spyware affecting 80% of home computer users*

80% of those with affected computers didn’t know these programs were installed

Consumers losing trust in software delivered over the internet

* Per AOL/NCSA Online Safety Study, October 2004

Pushing the Envelope Adware is an effective way to generate leads and to make content and services possible for free Using surreptitious means instead of offering a clear, responsible value proposition has resulted in growing consumer backlash No independently verifiable standards existed No clear business incentive to “step-up” to best practices

Adware is an effective way to generate leads and to make content and services possible for free

Using surreptitious means instead of offering a clear, responsible value proposition has resulted in growing consumer backlash

No independently verifiable standards existed

No clear business incentive to “step-up” to best practices

Trusted DownloadProgram Trusted Download Program is a whitelist which our partners Yahoo!, CNET, AOL and ( You Can ), use to direct internet advertising dollars and distribution opportunities to software that demonstrates informed consent and gives control back to the user. www.trusteddownload.com

Trusted Download Program is a whitelist which our partners Yahoo!, CNET, AOL and ( You Can ), use to direct internet advertising dollars and distribution opportunities to software that demonstrates informed consent and gives control back to the user.

www.trusteddownload.com

Market Incentives for Certified Applications Uncertified Application Trusted Download Program Advertisers and Ad Networks Content Aggregators and Consumer Portals Certified Application Incentives = Money Anti-Spyware Software You Are Here = Install = Ratings

Objectives Promote meaningful notice and control for consumers Establish industry-wide standards for software developers Identify trustworthy applications via whitelist for distributors and marketers Help advertisers protect their brands through spyware-free advertising

Promote meaningful notice and control for consumers

Establish industry-wide standards for software developers

Identify trustworthy applications via whitelist for distributors and marketers

Help advertisers protect their brands through spyware-free advertising

Protect Your Brand By Doing… Clear Value Prop to Consumer What is the deal? Consent to download/install Ads are labeled as to the advertiser Software serving the ads are also labeled Who is the advertiser and what is the software doing the advertising

Clear Value Prop to Consumer

What is the deal?

Consent to download/install

Ads are labeled as to the advertiser

Software serving the ads are also labeled

Who is the advertiser and what is the software doing the advertising

Examples of Prohibited Activities Taking control of a consumer’s computer Modifying security settings Collecting personally identifiable information (PII) through the use of keystroke logging Inducing the user to provide PII to another person through intentional misrepresentation Inducing the user to install software onto computer or preventing efforts to block installation

Taking control of a consumer’s computer

Modifying security settings

Collecting personally identifiable information (PII) through the use of keystroke logging

Inducing the user to provide PII to another person through intentional misrepresentation

Inducing the user to install software onto computer or preventing efforts to block installation

Contact TRUSTe John P. Tomaszewski, Esq. VP, Legal, Policy & Compliance [email_address] 415-520-3423 www.trusteddownload.com

John P. Tomaszewski, Esq.

VP, Legal, Policy & Compliance

[email_address]

415-520-3423

www.trusteddownload.com

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