This document discusses the rise of mobile commerce (m-commerce) in affiliate marketing. It notes that mobile traffic and sales through affiliates have grown dramatically in recent years, with mobile traffic increasing from 2% to 19% and mobile sales from 1.8% to 11% over a two year period. However, mobile sales have not grown as quickly as mobile traffic, indicating an opportunity to improve mobile conversion rates. The document also addresses challenges and opportunities around mobile tracking, multi-channel affiliates, and the need for separate mobile reporting and optimization.

1. M-Commerce in
Affiliate Marketing:
The Complete
Picture
M-Commerce in
Affiliate Marketing:
The Complete
Picture
Kevin Edwards, Affiliate Window
kevin.edwards@affiliatewindow.com
strategy@affiliatewindow.com
Kevin Edwards, Affiliate Window
kevin.edwards@affiliatewindow.com
strategy@affiliatewindow.com
@Awin_Strategy@Awin_Strategy

2. GLOBAL PERFORMANCE
MARKETING EXPERTS
PART OF LARGEST GLOBAL
PERFORMANCE NETWORK
ESTABLISHED IN
2000
CUSTOMIZED
PORTFOLIO SERVICES
2
TIMES WINNER OF
PUBLISHERS’ CHOICE
OF NETWORK
TIMES WINNER OF
AFFILIATE NETWORK
INNOVATION
$2.5bn
1,700
MERCHANTS

3. The
Affiliate
Landscape
The
Mobile
Landscape

4. ...Phenomenal adoption: can we keep
up...?
*Ofcom, Communications Market Report, August 2011
58% of US teenagers
have smartphones;
faster adoption than
any other age group
58% of US teenagers
have smartphones;
faster adoption than
any other age group
55% of US & 62% of UK
adults have smartphones,
double digit YoY growth
55% of US & 62% of UK
adults have smartphones,
double digit YoY growth
Different demographics
and ages choosing different
handsets; marketing impact
Different demographics
and ages choosing different
handsets; marketing impact

5. Android is king of the
handsets: but who is
winning the m-
Commerce war?
Android is king of the
handsets: but who is
winning the m-
Commerce war?
The iPhone is aspirational
and enjoys high ABC1
concentration
The iPhone is aspirational
and enjoys high ABC1
concentration
16-24 prefer Blackberrys
(37%) to iPhones (25%)
16-24 prefer Blackberrys
(37%) to iPhones (25%)

6. Our data references
over 1.5bn clicks...
Our data references
over 1.5bn clicks...
...and nearly 45m
sales from 1,400
retailers
...and nearly 45m
sales from 1,400
retailers

7. ‘MOBILE’ DEVICES: TABLET AND HANDSET
7
TabletTablet HandsetHandset
Current
c.60/40
sale split
Current
c.60/40
sale split

8. MOBILE TRAFFIC (TABLET AND HANDSET):
JAN 2011 – DEC 2012
8
From 2% to 19% in 24 months
From 2% to 19% in 24 months

9. 9
From 2% to 14% in 24 months
From 2% to 14% in 24 months
MOBILE SALES (TABLET AND HANDSET):
JAN 2011 – DEC 2012

10. 10
From 1.8% to 11% in 24 months
From 1.8% to 11% in 24 months
MOBILE HANDSET TRAFFIC:
JAN 2011 – DEC 2012

11. 11
From 1.5% to 6% in 24 months
From 1.5% to 6% in 24 months
MOBILE HANDSET SALES:
JAN 2011 – DEC 2012

12. THE MOBILE/SALES DICHOTOMY
12
x6x6
x10x10 x7x7
x4x4
All mobile traffic/salesAll mobile traffic/sales All handset traffic/salesAll handset traffic/sales
Tablet traffic has grown
exceptionally strongly and
converts higher than
desktop traffic
Tablet traffic has grown
exceptionally strongly and
converts higher than
desktop traffic
Handset traffic has grown
strongly but isn’t
converting well: nearly half
the rate of traffic growthHandset traffic has grown
strongly but isn’t
converting well: nearly half
the rate of traffic growth

13. DEVICE SPLIT BY SALES: 2012
13
iPad overtook iPhone in Aug 2011 and now dominatesiPad overtook iPhone in Aug 2011 and now dominates
iPhone was double Android sale total despite handset leadiPhone was double Android sale total despite handset lead
Android closing the gap: 70% of iPhone sale total - Dec ‘12Android closing the gap: 70% of iPhone sale total - Dec ‘12

14. DAILY SALES SPLIT: MOBILE VS.
DESKTOP

15. TAKEOU
T
TAKEOU
T
SIMSSIMS ENTERTAINMEN
T
ENTERTAINMEN
T
GROUP BUYINGGROUP BUYING
80-90% OF SALES
COMING THROUGH
INCENTIVIZED
TRAFFIC
80-90% OF SALES
COMING THROUGH
INCENTIVIZED
TRAFFIC
THE MOBILE BASKET DISSECTED

16. MOBILE: GROUP BUYING SECTOR

17. MOBILE: TELECOMS SECTOR

18. MOBILE: CLOTHING SECTOR

19. TREATING EVERY AFFILIATE DIFFERENTLY
19

20. THE TRACKING THREAT

21. $200k$200k$200k$200k
$3.5m$3.5m$3.5m$3.5m
$45m$45m$45m$45m
In lost commissions in May 2012
Revenue unattributed to affiliate marketing
Commissions lost in 2012 (allowing for growth)
We have an
action plan in
place… do you?We have an
action plan in
place… do you?
THE TRACKING THREAT

22. DevMobileDevMobile
“Probably…
My other app based
on Dutch retailer
bol.com, saw
conversion
increase from 8 to
12%:
a 50% increase in
sales.”
MISSED OPPORTUNITIES?

23. THE CASHBACK DILEMMA
Hugely successful affiliates
Burgeoning multi-billion dollar sector
Often deliver great quality customers
Creating powerful retail brands
Offer range of promotional opportunities
Focused on demonstrating incremental sales
Multi-channel: apps & mobile sites launched

24. THE CASHBACK DILEMMA

25. THE AFFILIATE COUPON LANDSCAPE
QR CODESQR CODES
SMSSMS
GEO LOCATIONGEO LOCATION
APPLICATIONSAPPLICATIONS
M-COMMERCEM-COMMERCE 99%> SALES99%> SALES
CHALLENGESCHALLENGES
IN STORE
TRAINING
IN STORE
TRAINING
SETTING
COMMERCIAL
S
SETTING
COMMERCIAL
S
OFFLINE OR
ONLINE
SALE?
OFFLINE OR
ONLINE
SALE?
JOINED UP
TRACKING &
REPORTING
JOINED UP
TRACKING &
REPORTING
LOCAL BUSINESS
OPPORTUNITIES
LOCAL BUSINESS
OPPORTUNITIES

26. • High traffic, fewer sales
• Female, high earners
• iPhone/Android neck and neck
• Increase footfall & AOV
• Connection speed issues
• What impact will NFC have?
• Strong offer: wider geo reach
AFFILIATE COUPON INSIGHTS

27. CASE STUDY: JOINING ONLINE AND OFFLINE
• Exclusive 10% off via
affiliate coupon app
• Redeemed at point of
sale in store
• Tracked to
Debenhams’ database
• Attributed to affiliate
channel
• Affiliates credited with
commission
27

28. WINNER
OF INNOVATION
IN AFFILIATE
MARKETING
UTILISING
GEO-BASED
VOUCHER
CODES
DRIVING MOBILE
TO IN-STORE
CASE STUDY - DEBENHAMS
28

29. MULTI/OMNI CHANNEL AFFILIATES
DESKTOPDESKTOPAPPAPP
EMAILEMAIL
ONLINE TO
OFFLINE
ONLINE TO
OFFLINE
MOBILE
SITE
MOBILE
SITE
TENANCYTENANCYSMSSMS
ALIGNING BUSINESS GOALS HAS NEVER
BEEN MORE IMPORTANT
ALIGNING BUSINESS GOALS HAS NEVER
BEEN MORE IMPORTANT

30. REPORTING REQUIREMENTS HEIGHTENED
Know what you’re measuringKnow what you’re measuring
Challenge your networkChallenge your network
Who is doing well for you?Who is doing well for you?
Time for a separate mobile
approach?
Time for a separate mobile
approach?

31. • Affiliates are becoming multi-channel:
– Understand the range of activity
• Incremental sales or minimising lost traffic?
• Reporting requirements heightened
• Tracking is a serious threat!
• Prioritise, test and optimise
• Separate out your mobile affiliate traffic
• Who knows how big mobile could be…?
THE NEW DAWN OF MOBILE

32. M-Commerce in
Affiliate Marketing:
The Complete
Picture
M-Commerce in
Affiliate Marketing:
The Complete
Picture
Kevin Edwards, Affiliate Window
kevin.edwards@affiliatewindow.com
strategy@affiliatewindow.com
Kevin Edwards, Affiliate Window
kevin.edwards@affiliatewindow.com
strategy@affiliatewindow.com
@Awin_Strategy@Awin_Strategy