2. Market Pressures
Google raises the bar in Paid Search with Adwords
Search Engines continually improving their organic
search algorithms to personalise search results
Maturity and size of the advertising market demands
more accountability, quality, performance & ROI
Web users become smarter and more savvy expecting
high quality web sites and services
Explosion of social networks and their ability to drive
sales through personal recommendations
3. What if the restaurant gave you 10% of the
bill of every friend you recommended it to?
12. Affiliate Marketing in Transition
Affiliate 1.0 Affiliate 2.0
Spam SEO sites High quality sites utilising user generated
content and comparison engines
Unauthorised PPC activity Closed groups of approved affiliates
providing complimentary PPC with
performance targets and accountability.
Free Stuff Sites Cash back and reward sites with long
term user bases
Part time affiliates Professional affiliate individuals and
companies with dedicated resources
Email Offer Newsletters Desktop Widgets & Moblie Phones
CPM Banners Google AdSense
13. Emmerging Sectors in Europe
FMCG – 17%,
Credits – 11%,
Travel – 15%,
Entertainment & games – 13%,
Insurance – 8%,
Medical products & beauty – 5%,
Cars – 5%,
Charity – 3%
14. “Online Affiliate Marketing” - allows a
company to track and measure the exact
source of sale & pay the commission to the
originator of that sale.
19. You need to build a Platform
20. You need Partners
– Affiliates on Social Networks
– Search marketing affiliates
– Email marketing affiliates
– High traffic websites
– Coupon affiliates
– Niche content providers
– Product review sites
21. Partners Big & Small
If you can pay $50 for a conversion – why
would you care were you got it from?
It can be a website with only 20 users
Too small to contact directly
22. Why partners?
• You need to partner with your
affiliates, because you have to come up
with price to keep everyone happy.
23. How to attract best affiliates?
• Compensation plan
• Quality is the bottom line
• Experiment with forms of advertising
(banners, product links, widgets)
• Focus on conversion optimisation
Price – 20’000 EUR
Dealers commision – n/a
Affiliate commission – 300 EUR
Cost per lead (registration for test drive) 30 EUR
Website converts 5% (1 of 20 will register)
Banner clickrate – 0,1% (1 of 1000)
Affliate needs 20’000 impressions for 1 lead (registration).
CPM price is 1 EUR – deal
CPM price is 2 EUR – no deal
26. Network Benefits
Active affiliate network (recruit & review)
Reliable tracking & reporting technology
Help setting the right price
One payments solution
Hosting & Creative solutions
27. Why number of affiliates Matters
Number of Afiiliates on AdMix
December January February March April
28. Social networks drive sales through personal
recommendations – Afiliate 2.0
Affiliates require easy access to products, data
and pricing (API’s, web services, feed widgets)
Employ user generated content
Merchants need to accept that their
brand/products will be atomised by affiliates.
Excellent communication from all parties.
31. If you’d like a copy of this presentation
If you’d like to revolutionise your marketing
Notas del editor
CPC - Every time a potential customer leaves the affiliate website by "clicking" on the link leading to the merchant's website, a certain amount of money is deposited in the affiliate's account.CPL - Every time a potential client registers at the merchant's website as a result of the advertisement on the affiliate's account, a previously determined amount is deposited into the affiliate's account.CPS - Every time a sale is made as a result of advertising on the affiliate's website, a percentage, or commission, is deposited into the affiliate's account.
Know your affiliates and keep them happy. Offer silver & platinum subscriptions for your best affiliates and reward them.
Pay affiliates as much as possible. Phone & Subscription – look at lifetime value.Users aren’t going to take up valuable profile real estate if the offering isn’t compelling.Don’t search for home runs, try & test.Higher conversion rate will lower your adwertising costs & keep affiliates happy
How to sell a car on-line -
How long would it take you or your media planning agency to contact, agrree on and gain acces to that amount of websites.80 % of Internet users in Lithuania.